Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

eBay Gold and Silver Sales Booming; Buyers Beware

  by    2   2

You probably think of eBay as a good place to snag a deal on electronic gadgets, musical instruments, or sporting goods. But increasingly people are logging onto the auction site to buy gold and silver.

ebay

 

EBay officials told CNBC the company is touting its global user base of 150 million people to reach non-traditional buyers. With so many people entering the market for precious metals, buyers should beware. The strong demand creates a breeding ground for scammers. In fact, eBay is apparently using the demand for gold and silver bullion to peddle collectibles.

EBay is leveraging increasing interest in precious metals on its platform this holiday season. The company is marketing branded coins as the perfect stocking stuffers, an alternative to the traditional lump of coal. The company is offering deals on DC Comics’ Superman, Disney’s Snow White coins created by Royal Canadian Mint and a LucasFilm Star Wars coin from ModernCoinMart.”

As Peter Schiff points out in his special report Classic Gold Scams: How to Avoid Getting Ripped Off, many of these “collectibles” range from being major ripoffs to virtually worthless. For instance, the 1-ounce silver Star Wars collectible coin on eBay is priced at $129. That’s more than an 800% markup over the current spot price for silver.

According to a CNBC report, the sale of gold and silver bullion on eBay has surged over the last several months. On Thanksgiving, the online marketplace sold about one gold bar every minute, generating just under $1 million in sales.

EBay’s gross merchandise volume for bullion has spiked 60% from last year, and 27% from October, with about a quarter of sales on mobile devices.”

Silver is also a hot commodity on eBay. The site did a brisk business on American Silver Eagles bullion coins Thanksgiving as well.

Its sellers sold the silver weight equivalent of twenty-five fifteen pound turkeys on turkey day. Last weekend in just one day, it sold 2,500 rolls of 20 Silver American Eagles…That translates to more than $850,000 in gross merchandise volume and sales of 50 ounces of silver every 60 seconds.”

The sale of gold and silver bullion on eBay reflects generally strong demand for physical precious metals. Earlier this month, the World Gold Council reported global gold demand in Q3 increased 8% year-on-year. Investor demand was a major factor in the increase, surging 27%, primarily on the strength of gold bar and gold coin purchases. In the US, bar and coin demand hit the highest total in five years. American Gold Eagle coin sales are at the highest level since the financial crisis.

Just because a lot of people are shopping at eBay doesn’t mean it’s the wisest choice. Stick with a dealer you know you can trust. If you see a lower price, call us and find out if we can match or beat it.

scam-2-sm

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Taxpayers on the Hook for $435 Billion in Student Loan Losses

US taxpayers are on the hook for a $435 billion loss on the $1.37 trillion in student loans that were on the government’s books at the beginning of this year, according to an internal study by the Department of Education recently reported by the Wall Street Journal. That’s before any loan forgiveness program that might […]

READ MORE →

Money Is Not Wealth

When governments started locking down the economy in response to coronavirus, the Federal Reserve sprung into action. First, it slashed interest rates to zero. Then it quickly launched what we’ve dubbed QE infinity. In effect, that meant printing trillions of dollars out of thin air and pumping them into the economy. Meanwhile, the US government […]

READ MORE →

The Fed Now Holds a Record Percentage of US Debt

The US government has borrowed $4.2 trillion in the last 12 months, pushing the total national debt to over $27 trillion. In order for Uncle Sam to borrow, somebody has to lend. So, who is buying all of these government bonds? Foreign and domestic investors, commercial banks and US government entities all buy US debt, […]

READ MORE →

Silver Investment Demand Expected to Hit Five-Year High

Physical silver investment is expected to surge by 27% this year, according to the latest data released by the Silver Institute. Demand for investment silver is projected to come in at 236.8 million ounces in 2020. That would mark a 5-year high.

READ MORE →

The Fed Has No Way Out

We have argued that the Federal Reserve has no exit strategy from this extraordinary monetary policy. In fact, it never could extricate itself from the extraordinary monetary policy it launched during the Great Recession. Today, we’re merely witnessing the same policy on hyperdrive. And there is still no way out.

READ MORE →

2 thoughts on “eBay Gold and Silver Sales Booming; Buyers Beware

  1. Jeremy says:

    Could you elaborate further on the statement “EBay officials told CNBC the company is touting its global user base of 150 million people to reach non-traditional buyers.”?

    What is meant by “…150 million people to reach non-traditional buyers”? Are the 150 million people buying silver and gold on Ebay? Are they the individuals considered non-traditional buyers?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now