When Can You Bargain on the Asking Price of Precious Metals?

Written By Barry Lenson

Key terms: precious metal scrap, gold scrap, silver scrap, platinum scrap

“Every price is negotiable,” an old expression goes.

And although a lot of people repeat that idea to other people, everyone knows it is not entirely true. Let’s explore further.

Customary Negotiating Times . . .

  • When you are buying a new or used car, you know the price is negotiable, so you engage in a song and dance with the seller or the sales manager. 

  • When you are buying an engagement ring, you frown and scowl or pretend that you still want to “shop in another jewelry store.” You are hoping that the salesperson will drop the price so you can pick that ring that you and your fiancé or fiancée have fallen in love with – so you can close the deal and leave the store feeling excited.

  • When you are buying a house or other residence, it is expected that you will negotiate on price. Doing so is just part of the business of buying real estate and in most cases, people who just pay the asking price for a property are seen as naïve.

Times When People Do Not Negotiate . . .    

  • When you are buying a half gallon of milk at the grocery store, you are probably not going to say, “I’ll offer you $2.00, not the $4.00 you are asking.

  • When you are buying a lawnmower or a rake at a home superstore, you are probably going to offer the sticker price.

  • When your son or daughter gets into college, you are probably not going to negotiate on the tuition price. You can negotiate for a bigger scholarship or other concessions, but not on tuition itself; it’s all part of a complex and strange process that colleges have in place.

What Are the Rules and Why Are They There?

To be truthful, the rules that apply to when you can bargain and when you can’t are pretty hard to understand. They are based on customs and social expectations that depend on a number of factors.

One example? North Americans hesitate to haggle on prices when they visit some foreign countries. When they are in some Latin American countries, or in some parts of Asia or Africa, they feel it is impolite to offer a lower price than what a seller is asking. The seller, from his or her perspective, finds it strange that North American customers are willing to pay full price.

It is all a result of an odd mixture of customs and expectations.

But When Can You Negotiate for a Lower Price When You Are Buying Precious Metals?

It might surprise you to know that there are more times than you might expect when you can negotiate on price. One of them is when you are buying bullion or coins from a dealer, who generally will price those items based on current trading prices – as though the prices were “set in stone.”

But are prices ever really “set in stone,” much as dealers would like you to believe? The answer is, not really. Nothing – and we mean nothing- prevents you from offering a lower price. If you do, the worst that can happen is that the seller will turn down your offer or perhaps more often, will make a counter-offer.

Remember that “fair market price” for anything is determined by what a buyer is willing to pay and what a seller is willing to accept. And remember that despite a fancy-looking store or other external appearances, dealers and other sellers may be willing to entertain offers for what they are selling, because they may be under economic pressure to do so.

With that said, here are some times when you should not hesitate to negotiate for lower prices when buying precious metals . . .

  • When you are negotiating for precious metal scrap of most any kind – gold scrap, silver scrap, platinum scrap – you should feel free to make a reduced offer and see how the seller responds.

  • When buying jewelry from any source, you should feel free to make a low offer. Some “context” issues apply in this area. For example, you will probably not want to make a low offer when you are buying jewelry from a prestigious retailer like Tiffany or Cartier, because that is simply “not done.” But if you are buying from an individual seller or a less renowned retailer, there is nothing to stop you from trying.

  • When buying any kind of precious metals – scrap, jewelry, bullion, or anything else – from private sellers, feel free to negotiate. If your offer is not acceptable, the seller will either stop the sale or, more likely, make a counter-offer.

And remember, there is no shame in offering a lower price on what the seller is offering. You are entirely within your rights to do so, and you should not feel bad about it.

And When You Buy Gold, Silver, Platinum or Other Precious Metals

Call Specialty Metals Smelters and Refiners at 800-426-2344 so we can discuss your next steps. Take advantage of our experience and skill to get the maximum return on all your precious metal investments.

Barry Lenson
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