Scenario · Liquidating Dealer Inventory
Selling Inventory You Would Rather Keep
Every dealer has had the month where the only way to make a purchase, cover a show, or meet an obligation is to sell inventory into a bid that is softer than it should be. You are not selling because the price is right. You are selling because the calendar said so.
No credit check and no obligation. If borrowing is the wrong answer for your situation, you will be told that first.
The whole argument, in one line
Selling is permanent and can be taxable.
A loan is neither.
65%
Advance against value
$15k
Minimum loan
Same
Bars returned
Live market
Business-purpose loans only. Not available in Nevada, Vermont, North Dakota and South Dakota.
65%
Advance against market value
$15k
Minimum loan — about $23,000 in metal
Days
From verified collateral to funded
Same
Metal returned on repayment. Not equivalent — the same bars
The moment
How the decision usually gets made
Dealers understand this arithmetic better than anyone, which is why this is usually the easiest conversation we have. You already know the difference between a bid and a fair price, you already know what it costs to replace stock, and you already price LTV instinctively.
The math
The arithmetic worth doing first
The comparison is straightforward: the spread you eat selling into a soft bid, plus the cost of replacing that inventory later, against single-digit interest for the months you need the capital. For most dealers, on most positions, the interest is the cheaper number by a wide margin.
Instant estimate
What could you borrow?
Enter the ounces you hold. We advance up to 65% of market value.
| Metal | Spot / oz | Your oz | Value |
|---|---|---|---|
| Gold | $4,600.00 | $0.00 | |
| Silver | $69.00 | $0.00 | |
| Platinum | $1,840.00 | $0.00 | |
| Palladium | $1,329.00 | $0.00 |
Estimate only. Final advance rate and terms are confirmed after your collateral is inspected and verified. Spot prices are indicative and move continuously. Minimum loan is $15,000 (about $23,077 in collateral value at our 65% rate).
These are business-purpose loans and are not offered for personal, family or household use. Not available in Nevada, Vermont, North Dakota and South Dakota. If metal prices fall materially we may contact you about adding collateral or paying down the balance to keep the loan-to-value in range.
Honestly
Which way to go
Both columns are real. If more of the right-hand list applies to you, sell — and we would rather you did.
Borrowing probably fits when
- You are selling into weakness rather than into a fair bid.
- The inventory will be replaced anyway — you are just moving the timing.
- A purchase opportunity needs capital faster than the stock will move.
- You want to keep a position you believe in through a soft patch.
Selling is the better answer when
- The inventory is genuinely stale and you want out of it. Then sell it and be glad.
- The bid is actually fair and you are just reluctant.
- You would not replace the stock at today's price.
- The holding is below the collateral minimum.
Break it down
What selling actually costs
The Spread
Charged once when you sell and again if you buy back in. Changing your mind has its own price.
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The Tax Event
A sale can be a taxable disposal. A loan generally is not. The difference is structural, not clever.
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Losing the Position
The reasoning that made you buy metal does not usually change because an unrelated invoice landed this month.
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Replacement Cost
People price the buy-back at the price they sold for. It is almost never still that price.
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Selling on Someone Else's Schedule
When a supplier or a tax deadline picks the date, the price is whatever the market happened to be doing.
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What Borrowing Costs
The case against borrowing: a monthly obligation, a margin call mechanism, and an asset you could simply have sold.
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FAQ
Common questions
- Can I pledge inventory I am still trying to sell?
- Collateral is held in the vault for the term, so it is not available to ship to a customer. If you need the stock liquid, borrow against a different part of the holding.
- Do you understand grading and premiums?
- We are a metals business and we sell on eBay ourselves, so yes. That said, collateral is advanced against metal content, not numismatic premium — a rare coin is worth more to you than it is to a secured lender.
- Can I add collateral later?
- Yes, and dealers commonly do, either to increase the facility or in response to a margin call.
- Is this a consignment or a sale?
- Neither. It is a loan. The metal stays yours, it is stored in an insured vault, and the same bars come back on repayment.
Other scenarios
Covering a Slow Quarter
A permanent decision about the metal, made in about ten minutes because one quarter came in short.
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Selling at a Market Low
Borrowing to avoid a sale at a low is a financing decision if you can service it, and a bet if you cannot.
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After a Bank Said No
A decline is usually a statement about documentation and trading history, not about whether you own the metal.
Explore →
Next step
Run it both ways before you decide.
No credit check and no obligation. Tell us what you hold and what the money is for, and if selling is the better answer for your situation you will be told that first.
Business purpose only. Not available in Nevada, Vermont, North Dakota and South Dakota.