Why is it a higher percentage markup to verify a small amount of gold’s authenticity, if small coins are more likely to be legit?
Using nostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a's example of a $100 gram coin costing $150 versus a $2000 ounce coin costing $2100…
Is it that the verification process costs around the same regardless of the gold’s weight?
#asknostr
#gold
I assume the market is willing to pay the markup for 3 reasons:
1. Divisibility
2. Authenticity reliability
3. Portability
The real question is why you are fooling with Gold in the first place. Gold is expensive to own, verify, transport, etc. Fuck Around Find Out
Lol. Didn’t say I’m holding it. Asking out of intellectual curiosity
That’s your argument? Do you know how expensive one bitcoin is to own, verify, and transport?
Bitcoin self custody, verification and transport would objectively be less than $100 if you went past phone app storage.
I would think it’s the value of one coin. Because verification and transport is inherently in the product, so premium is inherently in the product. You can’t separate any of those from the product.
Combination of factors.
Each unit whether it’s a tiny coin or a bullion bar has to go through multiple assays to confirm legitimacy so you can imagine the same weight in coins will take a lot longer to verify than a single bar - those costs in time/labour add up and get spread across all the units.
But then it’s also a factor of sellers not wanting to deal with small volumes. If you can make $1000 selling one bar or $1 selling one coin (just as an example) then you’re going to spend a lot more time/labour selling enough coins to make up the same profit margin as a single bar sale. It’s almost an “annoyance cost”; they’ll sell it to you but it’s a pain in the arse for them to deal with more customers and make less money so they jack up margins to compensate.
The sweet spot for them is likely those 1/2oz or 1oz coins in terms of unit profits - selling bars would be less frequent but you’d rather make up for that with a few coins than with hundreds.
Thank you, that makes a lot of sense
