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Have you ever cancelled order due to price drop?

Discussion in 'Purchasing Precious Metals' started by Gstack, May 12, 2017.



  1. Gstack

    Gstack New Member Seeker

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    I just placed an order a couple weeks ago for platinum (4 oz.) and then saw the spot price drop $50 on each one between the time I made the order and the 5 day holding period for my check to clear. Later, I wondered if it would have been wise to cancel the order and then have the company (Provident) reinstate the order at the lower spot price. From what I understand, there's a cancellation fee associated with doing that which I thought was $35 but now see is 10% of the order price. From their website:

    Cancellation for Non-Payment

    Payment for your order must be postmarked or wired within 1 business day of order confirmation by Provident. If payment is not timely received, then Provident may cancel your order, and you will be responsible for payment of the following cancellation fee(s):

    • Bullion products - 10% of purchase price
    • Non-bullion products - No fee

    So, has anyone ever done this in order to get the lower price? In my case, it would have costed me about $41 to save $200. But is that all there is to it? Do companies like Provident protect themselves against this practice somehow? I've seen other things in their policy that mentions stuff about how it is a legally binding agreement between the customer and company when an order is made. Not sure what that means they can do. Part of their policy includes this statement:

    " Provident may apply any of your funds in its possession to pay any of your monetary obligations to Provident, may offset any monetary obligations that Provident has to you against any monetary obligations you have to Provident, and may suspend or terminate Your account. The suspension or the termination of Your account shall not affect Your obligations under this User Agreement."
     
  2. Silver

    Silver Gold Member Gold Chaser

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    A deal is a deal - up or down, you made a contract.
     
  3. latemetal

    latemetal Platinum Bling Platinum Bling

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    No, and if prices went up, I would expect the dealers to honor their word too...yes, I have cried a few tears.
     
  4. the_shootist

    the_shootist I self identify as a black '69 Camaro Midas Member Site Supporter ++

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    I couldn't agree more with my fine fellow members.

    You've now been advised Grasshoppa. How you choose to use that advice will define the person you become!
     
  5. Bottom Feeder

    Bottom Feeder Hypophthalmichthys molitrix Silver Miner Site Supporter

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    No.
    Just eat it. You'll feel better when you're old.
    An remember; it only works both ways if it works both ways.

    BF

    Edited so I wouldn't get a ticket from the grammar police - bf
     
    Last edited: May 13, 2017
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  6. Silver Art

    Silver Art Silver Art Bar collector Platinum Bling

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    I never cancelled an order due to the price dropping. A deal is a deal is a deal no matter what once you click on the "place an order" button.
     
  7. Someone_else

    Someone_else Gold Member Gold Chaser

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    I agree with the others. If you don't like the price, don't order. If you agree to the price, and order, then follow through. If you invest in stocks, do you ask your broker for a "do over" if your buy loses value? This should be morally obvious, but thank you for bringing up for discussion.
     
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  8. Usury

    Usury Gold Chaser Platinum Bling

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    I agree with all the others...honor your word.

    Although I am a bit perplexed at your math. How is 10% of the order only $41 if the prices dropped $50 on each? presuming you bought 4 oz PT, that'd be more like $410 for 10%. Something doesn't add up....
     
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  9. OverOver

    OverOver Silver Member Silver Miner Site Supporter

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    WTF?
     
  10. mayhem

    mayhem Другая перспектива Silver Miner Site Supporter

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    Just like during the 6 days that Mrs. Fred's silver coin took to get to them they lost $1,400.00 on the deal. They didn't call and say sorry you are getting the lower price.

    So many people do not honor their word these days, big problem in this country. In my early days of business a handshake WAS the contract, then folks turned into greedy scumbags, and you need a 10 page contract to get anything done.

    Edit to question. Why didn't you use direct check payment instead of sending them a check?
     
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  11. Montecristo

    Montecristo Silver Member Silver Miner

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    If you do cancel the order don't be surprised if you get blackballed from that dealer.
    It's rather ironic because he screwed so many people, but Tulving had a very strict one strike and you're out policy, not just for the game, but forever.
     
  12. Bottom Feeder

    Bottom Feeder Hypophthalmichthys molitrix Silver Miner Site Supporter

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    I remember Tulving - we did business...
    once... in a universe a long way away...

    BF
     
  13. Gstack

    Gstack New Member Seeker

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    You're right! My bad (math)!
     
  14. Gstack

    Gstack New Member Seeker

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    I agree. But part of the deal that's being made is that you would have to pay a cancellation fee if you decide to cancel. That's part of the deal that both sides agree to as well. I don't know if the cancellation fee is still $35 or not, but if it is, then the deal is that you pay the amount agreed to for the order and then you get what you paid for. If you cancel, then the company gets $35 and you get nothing at all. So in a way, the company would come out ahead in those circumstances.
     
    Last edited: May 13, 2017
  15. Gstack

    Gstack New Member Seeker

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    I didn't know it was an option. All I see on their site are prices for check, money order, bank wire, cashiers check, bit coin, or credit card. I do use direct check payment, which I believe is the same as using an electronic transfer through my bank's online bill pay option to pay my normal bills with. Not sure if that's the same thing though.
     
  16. gringott

    gringott Killed then Resurrected Midas Member Site Supporter

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    Short answer.
    No.
     
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  17. ^updated^

    ^updated^ found a way in Silver Miner

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  18. mayhem

    mayhem Другая перспектива Silver Miner Site Supporter

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    Well pick up the phone and call them. They might want personal one on one information about your bank #. Also the software might not be set up yet for that function, so call them and see if they will put it on file for ya. That's what I had Mrs. Fred do, she called them and gave them the routing info. Mrs Fred had her moneys overnight the day they received the packages. So I would assume they would ship the same way.
     
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  19. Silver Art

    Silver Art Silver Art Bar collector Platinum Bling

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    Honestly, I do not know about that cancellation fee until I read this post. Then again, I have never cancelled an order due to a price drop. I have never cancelled an order. I am going to make a guess by saying that I think that most (if not all) online bullion dealers have some sort of cancellation fee or "penalty" for backing out of an order that you and the company originally agreed to. To me, this is no different than any other contract that you sign (or click the "place an order" button) with a company. If you break the contract, then that contract states what the penalty is that you have to pay for your breaching the contract. When you cancel out an order that you placed with the company, then that is breach of contract and the penalty is whatever was stated in the contract. Whether the company comes out ahead or not when you pay the $35 cancellation fee for "breach of contract" (i.e. cancelling an order because of a price drop) does not matter.
     
  20. platinumdude

    platinumdude Gold Chaser Platinum Bling

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    You will have to talk with them. But most likely you will pay at the least the price difference between the price you locked in to the price it dropped, plus an additional dollar amount fee.
     
  21. stAGgering

    stAGgering Silver Miner Seeker

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    When you bought it, you bought it.
     
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  22. Gstack

    Gstack New Member Seeker

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    From what I've found on Provident's site, their terms concerning a cancellation is as I posted in the OP. It may have been $35 at one time, but it currently appears to be 10% of the purchase price. Since my purchase was over $4100, the penalty would be $410, which wouldn't be worth it.
     
  23. the_shootist

    the_shootist I self identify as a black '69 Camaro Midas Member Site Supporter ++

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    He swings and misses.....whiff!
     
  24. Silver Art

    Silver Art Silver Art Bar collector Platinum Bling

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    It probably was $35 but I am guessing that they changed penalty to 10% of purchase price to prevent people from cancelling their order because of a drop in metals prices (or other reasons). I am guessing it costs the dealer to cancel an order and they have to charge a cancellation penalty to recoup that cost especially if the markets move against them. This is just a WAG on my part.
     
  25. Gstack

    Gstack New Member Seeker

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    I think you're right. I'm pretty sure their new policy is doing what was intended.
     
  26. Lylelovett666

    Lylelovett666 New Member

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    I'd be ripshit if I placed an order,the price took a huge jump & then the dealer canceled my order. Ups & downs are part of the game.
     
  27. gringott

    gringott Killed then Resurrected Midas Member Site Supporter

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    The other side of the "coin". Good point.
     
  28. gringott

    gringott Killed then Resurrected Midas Member Site Supporter

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    You can't get there from here.
    I haven't ordered in a while so I made an order today via telephone.

    I found it interesting that she had a final question; Am I aware of the order cancellation policy? Have I read it?

    I don't remember being asked this question before.
     
  29. the_shootist

    the_shootist I self identify as a black '69 Camaro Midas Member Site Supporter ++

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    I'm surprised more vendors haven't been more detailed about a cancellation policy. Of course, if all their customers had integrity there would be no need for a cancellation policy to begin with, now would there? Unfortunately we have to share the planet with some highly unsavory fucks!
     
  30. Irons

    Irons Deep Sixed Site Supporter Mother Lode

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    Hell if I did that I never would have followed through on any purchase.
    My unique powers cause metal prices to drop across the board as soon as I buy so much as a Dos Pesos

    .
     
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