18 October 2012

APMEX and EBay Bring Live Prices to Gold and Silver

As Gold and Silver become more mainstream. APMEX and eBay introduce live priced precious metal, to position a fresh way to buy Bullion.

Gold and Silver are the preserve of wealthy sophisticated investors the conventional wisdom goes. We have written several times before that if you surveyed 100 people in the street, perhaps no more than a handful of them would have any kind of Gold or precious metal investment to their name, beyond the jewelry that they own. Let alone be able to recognize a bullion coin such as a South African Krugerrand or American Gold Eagle, or have an idea of their value, or how to go about buying them.

With the proliferation of Cash for Gold shops over the past decade, it would seem that the public have actually been focused on disposal of what precious metal they do own, through the recycling of their jewelry. This enthusiasm to cash in old Gold, particularly in some of the more distressed European territories, has even seen cash for Gold businesses closing as the finite quantity of jewelry that people have to sell runs down.

But now it seems that Gold and Silver ownership tide is turning, as precious metal gains traction in the minds of people as a saving vehicle that can help them defend their savings against the debasing of their national currencies. Here at BullionSupermarket.com we have not been shy about writing of the increasing activity from new retail investors that we see across our site, or drawing conclusions about what effect a shift of event a small percentage of investment portfolios to bullion would do to prices.

This somewhat anecdotal evidence was this week reinforced as perhaps one of least known retail bullion markets took what we at BullionSupermarket.com think is a major step forward to making bullion accessible through a trusted retail platform.

APMEX, one of Americas largest precious metals dealers, announced a partnership with eBay to act as a distribution channel for their Bullion products. This marks the first time a major bullion dealer has been able to join the sizeable and liquid eBay market on a "live price" basis. APMEX precious metal prices will now float on a "plus premium" basis with the live price of the metal.

At BullionSupermarket.com we believe this development could give a significant boost to the already significant eBay precious metals market. Until now it had been difficult for sellers, if not impossible to easily update prices of Gold and Silver inventory on eBay. This meant that when the price of Gold or Silver fell, which in a normal market might cause buying of physical metal, eBay store inventory prices would take a much longer to re-price. This leaves the premium (the price over and above the intrinsic metal price) on these items artificially high, inhibiting trading. Similarly, a sudden rise in Gold or Silver prices could cause a flurry of buying of fixed price items as premiums are driven artificially low and sellers may lose out.

If, as we predict in the future, more sellers use this method of selling, the Ebay precious metal market can only gain in liquidity, credibility and scale. It will be interesting to see how the dynamic of auction/fixed price bullion items at Ebay is effected as this new model matures.

BullionSupermarket.com tracks prices and premiums on thousands of Gold, Silver and Platinum items at EBay and many other online platforms.


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