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Have you ever cancelled order due to price drop?

Gstack

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#1
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."
 

the_shootist

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#4
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!
 

Silver Art

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#6
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.
 

Someone_else

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#7
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.
 

Usury

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#8
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....
 

OverOver

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#9
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."
WTF?
 

mayhem

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#10
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?
 

Montecristo

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#11
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.
 

Bottom Feeder

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#12
I remember Tulving - we did business...
once... in a universe a long way away...

BF
 

Gstack

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#13
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....
You're right! My bad (math)!
 

Gstack

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#14
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.
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:

Gstack

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#15
Edit to question. Why didn't you use direct check payment instead of sending them a check?
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.
 

mayhem

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#18
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.
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.
 

Silver Art

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#19
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.
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.
 

platinumdude

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#20
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.
 

Gstack

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#22
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.
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.
 

the_shootist

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#23
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.
He swings and misses.....whiff!
 

Silver Art

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#24
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.
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.
 

Gstack

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#25
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.
I think you're right. I'm pretty sure their new policy is doing what was intended.
 

gringott

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#27
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.
The other side of the "coin". Good point.
 

gringott

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#28
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.
 

the_shootist

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#29
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.
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!
 

Irons

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#30
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

.
 

fisherpreciousmetals

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#31
I am encouraged to see so many responses from people that recognize their purchase as a legitimate contract (it is), as men and women of integrity. The reason for cancellation fees/market risk policies by dealers is to cover their market risk when an order is placed, and then potentially cancelled (or more often than not, funds do not clear properly i.e. bank wire doesn't process or check bounces or is never mailed.) Whenever a client places an order we remove the hedge from those metals in our inventory immediately at the contracted spot price. The dealer now carries the market risk on your purchase until your funds clear. The spot price can move for or against them, no one knows. Our Market Risk charge is 3% (we believe that 10% is extreme.) You can read the policy here: https://fisherpreciousmetals.com/order-and-payment-policies/ Please note, we are in the midst of migrating to an upgraded ecommerce platform, so online orders are turned off for one week.
 

Usury

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#32
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

.
Hey yo Irons...hows about yous start sellin...got it?
 

Irons

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#33
Hey yo Irons...hows about yous start sellin...got it?
Irons doesn't have any Gold that is just a silly internets rumor!
I just hang out here because you guys are so cool. . . :2 thumbs up:

.
 

chrisflhtc

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#35
In a similar vein I sent in a half dozen toz's of scrap platinum to a refinery(midwest) when the price was over 2000$ toz in March of 08, and it wasn't checked in for almost 12 days so I lost close to 3000$ in the mail. I never found out why it took them so long to verify my shipment.
Chris