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Thu Aug 18 2011 22:09:54

eBay Strikes Gold with Bullion Sweepstakes

By: Ina Steiner

Sponsored Link

eBay knows a PR opportunity when it sees one. As Brian Cohen wrote for us in April, gold is heating up on eBay, and it's not just coins - there's also an increasing number of "dental scrap" and computer memory listings. A month after we ran Brian's article, eBay launched a "bullion center" to make it easier for traders looking for gold and silver. And this week, eBay is running a Bullion sweepstakes to encourage users to buy bullion.

With the Bullion Bonanza, eBay users (by invitation only) who buy gold or silver bullion from featured eBay Sellers during the promotion period will receive one entry in the sweepstakes.

The Grand Prize is a 1-ounce Gold American Eagle coin with an approximate retail value of $1,858. First Prize is a roll of twenty 1-ounce Silver American Eagle coins, approximate value $851. Second Prize is 1/4 oz. of Gold American Eagle coins, approximate value $495. (ARV determined based on the value of Bullion on August 11, 2011.) Sweepstakes details are found here - you must have received an invitation via email to qualify.

When searching the Bullion Center on eBay, you can choose to filter search results by "featured seller" in addition to Top Rated Seller (any thoughts on what it takes to be a featured seller?).

If you are tempted to buy gold and silver on eBay (or elsewhere), make sure you know what you are doing. And that goes for selling too - sellers can be just as much at risk from shady buyers!

You might be interested to learn that the U.S. Mint revised its credit-card policy last month due to abuse of the program. The Mint eliminated the credit and debit card purchase of $1 Coins through its Direct Ship Program effective July 22, 2011, explaining:

The Mint has determined that this policy change is prudent due to ongoing activity by individuals purchasing $1 coins with credit cards, accumulating frequent flyer miles, and then returning coins to local banks. Local banks, in turn, returned coins to the Federal Reserve. While not illegal, this activity was a clear abuse and misuse of the program.

This particular behavior wouldn't affect eBay sellers, but it shows how "creative" buyers can be. A reader named Michael opined recently on the EcommerceBytes Blog:

The cash-back refund requirement now confirms that eBay is the safest, most risk-free place to invest in gold coins. A buyer purchases gold, and makes a profit if the market rises. If the market drops, the buyer (presumably now at any time in the future) can return the gold for a full cash refund. The buyer can then re-purchase gold at the new lower price. No way a buyer can lose .........but the seller certainly does.




Comments (21) | Permalink

Readers Comments

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: Carl G.

Thu Aug 18 22:40:27 2011

Gold is currently $1832 according to kitco.com...Silver is $40.55.

A one ounce gold coin is .90 pure gold...to sell it to a bullion buyer you would expect to cash it in at $25-28 a gram...31.11 grams in an ounce...the coin is worth to the common person $850-1000 in actual dollars as the dealers would then have to sell it to a refinery.

Silver is another story as most bullion dealers pay very little for silver...the silver coins are .999 pure...at 50 cents to $1.00 a gram you are looking at $30 a coin or $600 total.

These weights are based on the troy system.  Many jewelry stores buy by the pennyweight and there are 20 pwt. per ounce...

ebay is judging the coins at retail value and the winner would have to pay taxes based on that...

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: another side of the coin

Fri Aug 19 01:22:07 2011

Sellers are being filtered out of selling solid gold jewelry in the bullion scrap and recovered gold category. Another eBay glitch or on purpose?

Returns are or will become a huge problem for sellers of any gold or fine jewelry. Returns should not be allowed at all especially since gold is worth more than the dollar. Return money to get more money?! Sellers will be to buyers the equivalent of robbing a bank.

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: pete

Fri Aug 19 02:29:51 2011

I wonder if eBay have been  motivated by the huge amount of fake Gold ingots around the world…tungsten bead  filled bars, we all know how eBay love the Fake item business.
Gold + eBay = stress(loss of money)

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: GoldEagle

Fri Aug 19 02:56:00 2011

@Carl G.

A one ounce American Gold Eagle is made of 22k gold or about 90% pure gold, BUT it weighs 33.931 grams and contains 1.0909 troy ounces of gold (31.104 grams) .

At $1832 an ounce the gold content of a Gold Eagle would be $1998 so at 80% of spot its still worth $1598 for the gold.

Anyone dealing in gold and silver had better know exactly what they are doing or they can very easily loose their shirt. At $1800 dollars an ounce a small miscalculation or error can be very costly.

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: USMintBuyerScam

Fri Aug 19 03:12:33 2011

As of July 22, 2011 the US mint no longer accepts credit or debit card payments for $1 coins because people were buying them to accumulate frequent flyer miles on their credit card then taking the coins back to the bank and cashing them in. The banks turn the coins into the federal reserve so the government ends up getting them back. Buyers were using the scam to rack up free frequent flyer miles. $1 coins can now only be paid for with wire transfer, check or money order. Just goes to show how rampant buyer scams are.

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: John

Fri Aug 19 05:13:14 2011

I believe this will have it share of problems on eBay. I remember back in 09 submitting a link to the discussion boards on a counterfeit coin operation in China.

Not only were they reproducing very good fake coins but antiquity items as well. The link provided pictures of the coin machine, and antique items. All destined for life on eBay. Shortly after that I was kicked off the boards permanently . As the economy worsens and more and more this type of practice will increase on eBay. It will bring out two type of sellers.

The one who knows what they are selling will be illegal , and the seller looking for items to resell to make extra money but does not have a clue they are buying counterfeit items. Problems will abound.

It will also bring out the dead beat buyers looking to scam the system and get legitimate  silver for nothing. Knowing they are in cloaked in the Luciferian circles warmth and protection of a flawed feedback and buyer protection system.

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: do it for free

Fri Aug 19 07:31:23 2011

As with pretty much all sweepstakes, you dont need to purchase anything to enter:

By Mail: To enter the Sweepstakes by U. S. Mail, hand print your name, address, city, state, ZIP code, eBay User ID, date of birth, email address (optional) and daytime telephone number on a 3" X 5" card, and mail it, in an envelope with postage affixed, to: eBay Summer Bullion Bonanza Sweepstakes, P. O. Box 0832 Plainview, NY 11803-0832. Mail-in entries must be postmarked by August 22, 2011 and received by August 29, 2011 in order to be eligible

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: TomH This user has validated their user name.

Fri Aug 19 08:29:16 2011

I would maybe buy gold or silver on ebay from a dealer if I had previously dealt with them face to face in their place of business (there may be three or four of them that I know). But they have their own websites which I would prefer to use anyway.

I would NEVER in my life sell gold or silver on eBay. I would sooner just throw it out the window of my auto...

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: buck efay

Fri Aug 19 12:13:18 2011

Regarding fake gold ingots: yes there are & easy to fake with heavy plating. Was in the jewelry trade & one place I worked we were closed at gunpoint & assets seized after the bank that had loaned the owner several million in cash against gold ingot deposits finally wised up when one bar began turning green & they assayed the load, finding they were actually plated brass!

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: Brian Cohen
Web Site

Fri Aug 19 15:03:41 2011

until there is a revolution in shipping authentication FedEx/USPS/UPS etc.
there is always the possibility of the old Indiana Jones Golden Chachapoyan Fertility Idol switcheroo...

Perhaps some sort of RFID shipping authentication system is in the future?

until then, don't get yourself in a jam like Indy -- get a scale!

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: galinazo

Fri Aug 19 16:28:19 2011

When I got the email invitation from eBay on Aug 17th for this sweepstakes, I called ebay to verify it was not a spoof email. The ebay representative told me there was nothing they could find to confirm it was a legitimate sweepstakes. I then forwarded the email with long headers to spoof@ebay.com and have received no reply whatsoever. Having read confirmation of it here confirms that ebays left hand doesn't know what the right hand is doing. The same thing happened when I got an invitation for the ebay Bucks Member sweepstakes back on June 17th. Ebay representatives told me that was a spoof also. Oddly enough the invitations come to my computers mail app, but not to the ebay messages tab on ''my ebay'' page. Very frustrating.

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

This user has validated their user name. by: Tula

Fri Aug 19 17:38:12 2011

I certainly won't risk selling precious metals or jewelry on eBay. If ever a category was a target for scammers, this is it. It's like gambling: I only risk selling there what I can afford to lose. Between eBay's return policies and Paypal's free hand with refunds and chargebacks, it's simply not worth the risk. Especially when other platforms are safer and more secure from scam artists.

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: buck efay

Fri Aug 19 23:29:32 2011

Be careful shipping gold or other monetary objects, many carriers do not have your back!!!
Fedex guideline:
18.4 Shipments containing the following items of extraordinary value are limited to a maximum Declared Value for Carriage of USD 1,000 per Shipment or US$ 9.07 per pound, whichever is greater. Import of any of these items may be prohibited by individual countries and a lower Declared Value for Carriage limit for a country, if any, will control this stated limitation for such items:


Artwork, including any work created or developed by the application of skill, taste or creative talent for sale, display or collection. This includes without limitation, items (and their parts) such as paintings, drawings, vases, tapestries, limited-edition prints, fine art, statues, sculptures, collector’s items, customized or personalized musical instruments or similar items;
Antiques or collectable items, or any commodity that exhibits the style or fashion of a past era and whose history, age or rarity contributes to its value. These items include but are not limited to, furniture, tableware, porcelains, ceramics and glassware. Collectable items may be contemporaneous or relating to a past era;
Film, photographic images (including photographic negatives), photographic chromes and photographic slides;
Any commodity that by its inherent nature is particularly susceptible to damage, or the market value of which is particularly variable or difficult to ascertain;
Glassware, including but not limited to signs, mirrors, ceramics, porcelains, china, crystal glass, framed glass and any other commodity with similarly fragile qualities;
Plasma screens;
Jewellery, including but not limited to, costume jewellery, watches and their parts, mount gems or stones (precious or semiprecious, cut or uncut), industrial diamonds and jewellery made of precious metal;
Precious metals, including but not limited to, gold and silver, silver bullion or dust, precipitates or platinum (except as an integral part of electronic machinery);
Furs, including, but not limited to, fur clothing, fur-trimmed clothing and fur pelts;
Stocks, bonds, cash letters or cash equivalents, including but not limited to food stamps, postage stamps (not collectible), travellers checks, lottery tickets, money orders, gift cards and gifts certificates, prepaid calling cards (excluding those that require a code for activation), bond coupons and bearer bonds;
Collectors items such as sports cards, souvenirs and memorabilia. (Collector’s coins and stamps may not be shipped. See the Items Unacceptable for Carriage section);
Guitars and other musical instruments that are more than 20 years old and customized or personalized musical instruments.


UPS & USPS have similar exclusions regarding Gold & other monetary objects careful!

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: Joe Average

Sat Aug 20 02:42:17 2011

Wow, grand prize is 1oz of gold that I can resell for approx. $1000.

Donahue pays $1000 for his haircuts. What a cheap grand prize.

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: Frank Provasek

Sat Aug 20 17:55:52 2011

Ebay starts this program, yet has no knowlege of the working of the bullion gold and silver coin market.  First, We work off 2% to 5% buy/sell spreads, so ebay's FVF is more than the profit on a sale. We might as well take our stuff to the smelter.  Second, bullion coin dealers do not take credit cards, because, again, the credit card fee is equal to or more than the profit on the sale.  Yet eBay forces sellers to accept Paypal or other credit cards.

Thirdly, bullion sales are FINAL because the markets change by the minute.  Buyers can file a SNAD complaint if the market goes down and eBay usually grants it up to 45 days after purchase.  Imagine your stockbroker forced to refund the price you paid for stock for 45 days, even if the market value dropped by half!  

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: Brian Cohen
Web Site

Sun Aug 21 12:42:51 2011

Re: Second, bullion coin dealers do not take credit cards
APMEX (one of the largest if not the largest seller of bullion on the web) takes Credit Cards--- though it costs more than a Wire.
it's tricky when it comes to merchant accounts but it can be done.
http://www.merchantcouncil.org/merchant-account/operation/pas
s-fee-customer.php

Also
how do you pay when purchasing directly from the U.S. Mint? I assume Credit Card.

It would be interesting to see which *dealers* accept crfedit card...
More dealers here...
http://www.silverinstitute.org/investing_in_silver.php

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: Danny

Mon Aug 22 11:56:38 2011

I hate eBay.

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

This user has validated their user name. by: Ming the Merciless

Mon Aug 22 14:24:54 2011

This ridiculous hype is nothing more than the latest scheme the ebay wet behind the ears, never run a business, know nothing about precious metals trading MBAs have dreamed up to relieve sellers of profit.

If precious metal investment is for you, try GLDs instead.

Run, don't walk, from anything ebay promotes!

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

by: Paul

Tue Aug 23 10:53:44 2011

Ebay sucks :-)

eBay Strikes Gold with Bullion Sweepstakes   eBay Strikes Gold with Bullion Sweepstakes

This user has validated their user name. by: permacrisis

Wed Aug 24 09:22:39 2011

Licen$e to $TEAL!

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