Red Alert! $3,000 Coin Deal Is Going Live & Why You May Want To Avoid It
Shawn wrote about the coin deal that goes live in about 30 minutes a few days ago. On the surface it looked like an amazing offer. You could knock out $3,000 in spend and put anywhere from $50-$200 cash in your pocket by selling it to pre-confirmed buyers. This wasn’t going to be as crazy of a profit as the last coin deal, where $80 coins sold for $1000+, but it had a big price tag. That meant easy points, enough to hit some welcome offers if you so choose. But some things have changed since Tuesday and I am sitting this round out. Let’s take a look at why.
Offer Details
Here are the details on the coin:
- Offer goes live Thursday, September 24th – at 12:00PM ET the US Mint will release a limited edition Palladium coin.
- There is a limit of 1 coin per household.
- The cost of each coin will be $3,000.00. After including the $4.95 shipping charge, each order’s total will be $3,004.95
Why I Am Sitting This One Out
At first, I had plans to try to get in on this deal. People seemed to be excited about it. PFS Buyers club was offering a $50 profit but others were saying they could offer around $200. That meant I could get $3,000 in spend plus a few hundred dollars in profit, what is not to like?
Then buyers started to adjust their payout amount. It went from $200 to $100 to $75 etc. They also went from taking 100 people’s orders to 20. Or went from allowing 3-4 orders to be submitted to 1 order etc. It appears backend buyers, which even PFS has, are backing out or reducing quantities they will accept.
I also read that the last version of this coin, the 2019 one, still hasn’t sold out. The 2020 version has a smaller production quantity than the 2019 version but that still isn’t a good sign.
Final Thoughts
If you have a slot secured with PFS or a buyer you have worked with in the past then you will probably be okay. Having said that, there is always some risk in these deals and this one seems to be riskier than most. If the coin was a few hundred dollars again I would probably take the risk. But when we are talking about a few thousand dollars, the pay off just doesn’t seem worth the risk to me. Especially with how shaky the ground feels underneath it right now.
I have also heard that there should be another release in November that will have higher demand. Hopefully that holds true. For this one, I am going to have to give it a hard pass myself. Let me know your thoughts in the comments below.
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I bought 3. Two for PFS and one for eBay sale. Let’s see. I can always return it prior to day 7.
Well…it’s sold out now.
Making me nervous over here! Lol
Happy to say it is now sold out. Spot price of palladium should go up as well with such short supply helping out the value.
If you have a buyer lined up already I think you will be fine.
“If for any reason within 7 days of receiving your product you are dissatisfied with your purchase, you can return the entire product for refund. Shipping charges will not be refunded for all returns.”
So your risk is less than $15 for shipping.
I’m in for this one, PFS has been great to deal with. A 1.6% return not counting points/benefits in well under two weeks. Tell me where you get those returns these days? I’ve seen folks jump through hoops and tie up large sums with banks for months for the same return!
It will be a good deal for some for sure. If you got a PFS spot then I think you will be fine.
The US Mint has sold 17,804 of the 2019 Palladiums as of 9/20/20. With there being a run of 10,000 instead of 30,000 on these, maybe demand will be a little higher. I didn’t go for the PFS deal and am hoping eBay gives a better return than $50.
[https://www.usmint.gov/about/production-sales-figures/cumulative-sales]
It has been live for 40 minutes and is still available. I am not sure this is going to be a money maker on the open market.
If PFS or CGB or any other buyer who wants you to purchase it for them doesn’t end up paying out or problems arise, then I’m stuck with a $3k coin that is more difficult to liquidate to just break even compared to gift cards. Plus the profit potential is too small for the risk. The ROI doesn’t makes sense to me.
So are you thinking PFS may end up burning people? If so, that would be the end of their business model. It only would take one time for them to stiff people and it would be all over.
I don’t think PFS will but I could see other buyers potentially doing it.
Typo “$1000+”
Not a typo – the coins for last year went that high if you sold yourself.
Yep. Precisely what I did. Got $1200 for $80 coin.