Gold - What’s it Worth to You?
The answer to this question is what drives economic theory and practice, and whether you realize it or not, your answer to this question is driving your decisions on buying gold paydirt. In fact, it affects every purchase decision you make. Stay with me on this…
In a free market, capitalistic environment, something is only worth what someone is willing to pay for it. If you don't believe that, and you think someone else (like the government) should be setting prices for everything, you can stop reading here and study the Communist economic system; where the goal is "eliminating socioeconomic class struggles by creating a classless society in which everyone shares the benefits of labor and the state controls all property and wealth." The focus is on the "state." Communism | National Geographic Society
Nevertheless, the fundamentals principles of Economics state that if the number of people selling something is increasing and therefore the supply is greater than the number of people who want to buy it, then the price of that item will drop until the price changes or the supply changes resulting in a balance between the two.
A free market almost always tends to find the balance between sellers and buyers, unless...governments insist on adding taxes, or tariffs, or other regulations that directly or indirectly increase or reduce the supply or the demand.
Likewise, if the number of people Selling (Supply) an item drops and the items becomes harder to get, the price will go up until more suppliers come into the marketplace to satisfy the demand and/or fewer people are willing to buy at the higher prices. Once again, the markets tend to balance itself (equilibrium) between Sellers and Buyers.
So, when it comes to gold, a rare, hard to find element to start with, the price most people are willing to pay for it depends on how easy or hard it is to get, and how many suppliers there are.
If there is only one supplier, then it's take it or leave it. If there are lots of suppliers, then you can shop for the best deal.
The demand for gold paydirt is high, therefore everybody and his brother is selling “gold paydirt” to anyone who will pay for it…it’s a Buyer’s market: the “Supply” seems to be high with paydirt being sold on every online street corner on the internet.
So how do you determine what is a good deal? Where is the value?
Well, as many of you have learned the hard way, placing an order and receiving a quality product quickly, without getting ripped off, are two different things.
So, before you jump in, you need to answer some personal questions.
For instance, when it comes to Gold Paydirt, what is it worth to you to get same day shipping as opposed to days or weeks?
What’s it worth to you to have a 100% guarantee as opposed to buying at your own risk?
What’s it worth to you to have immediate responsiveness and access to the owner of the business?
What’s it worth to you to be treated as a friend rather than just a sales prospect?
At iPan4Gold, we take all of these question into consideration. We want our customers to have the best panning experience possible, the best customer service, and ultimately, your return business.
Here are some points to consider...
1. If you’re all about raffles, and paying more for the chance to win a prize (gambling) than you are for the enjoyment of the panning experience, then iPan4Gold is not for you.
2. Since the Spot Price is the metric everyone goes by, we try hard to purchase gold for under spot and then mark it up just enough to cover all our costs and still have a little bit of profit. If “ROI” * is your primary measure of a good paydirt provider, then iPan4Gold is not for you.
At iPan4Gold, we have to purchase our gold ounces at a time. We purchase paydirt, mix it together, store it, process into individual paydirt shipments, package it, market it, and ship it, and still make enough money to stay in business.
3. Likewise if you are under the impression that you are going to be able to buy gold that is worth more than what you paid for it, iPan4Gold is not for you.
However, I encourage all my competitors to sell for under Spot. :-)...but many of them won't be around for long.
Most large gold sellers demand spot price for their gold. Therefore, a 20-50% markup is to be expected if a paydirt provider is to stay in business. (For you "ROI"* proponents, this equates to a -20% to -50% return on your investment)
If you can find it for less, then by all means buy from them, but keep in mind what makes iPan4Gold different from the rest.
4. At iPan4Gold, we measure our customer satisfaction by the feedback we get from our customers as well the number of repeat customers we have accumulated.
Our goal is to be one of the best, most responsive, and quickest shipping gold paydirt providers in the market. In the Gold Paydirt market, you sometimes, get what you pay for...at iPan4Gold, we want to be the rule, not the exception.
* Several gold paydirt reviewers started using the "ROI" a few years ago to describe the value of the gold recovered from a paydirt sellers' shipment. I know of no reviewers who use the correct formula for calculating a true ROI: if you spend $100 and got back $80 worth of gold, they would report an 80% ROI. This is incorrect, it would actually be an ROI of -20% since the value ($80) of what you got for your $100 is less than what you paid for it. In order to achieve an 80% ROI, it would have to yield gold worth $180. Look up and ROI calculator on Google and test this. It would more correctly be a called a Recovery Rate. I'm glad I got something for pursuing an MBA. :-)
Hi, Michael… Good article !! Hope it does some good..