Bullion producer and refinery service provider Market Harmony LLC blends creating physical precious metal and copper bullion products with an online sales strategy focused on viral marketing and social media.
In this post, I am very pleased to present an interview with Michael Arvay, the owner of Market Harmony. As I’ve gotten to know Michael over the last year or so (and acquired a number of his excellent silver bars) I’ve found him to be a straight shooter with an interesting story. I hope that readers of Innovative Passive Income Blog can learn from Michael’s experiences starting and growing his business through social media and online marketing.
JadeDragon: Michael, what got you interested in starting your own business?
Market Harmony: I’m a graduate of the Culverhouse School of Business at the University of Alabama, and putting to practice what I’ve learned both through education and experience in several industries has always been a goal of mine. I’ve always wanted to work for myself and reap the full rewards of my labor. I initially thought it would also offer a tax benefit, but I’ve yet to see any of that. Once I made the leap, I was completely hooked. Owning a company is like raising a child. There are growing pains and triumphs and failures, but all in all it is a rewarding endeavor that only a mother or father… or business owner can understand.
JadeDragon: Of all the things you could have done, why did you choose the precious metals business?
Market Harmony: Some of my past experience is in the field of metallurgy and I’ve always been a financially conscious person. Precious metals, being directly tied to historical forms of money, are now today’s wealth preservation vehicles. For me to be able to combine the metallurgical experience that I have with a prudent financial concept seemed to be a no-brainer. However, had it not been for a few key inspirational conversations, I would have never purchased that first little furnace.
JadeDragon: What tips can you provide for developing a market online?
Market Harmony: The single best piece of advice that I can give is to be yourself and follow the golden rule. As a seller of anything, you must put yourself into the shoes of your customer. What do they need? Why would they trust your company? What is it that draws a them to you and how do you keep them there?
Specifically for my company, there are some other key considerations. Precious metals is a relatively small market, and the products which Market Harmony produces is a niche within this market. This gives me a chance to interact with a tight-knit group of normally like-minded people. A solid reputation, world-class products and services, and availability are a must. Online forums where I can demonstrate these attributes has been a huge help. Videos of hot molten metal is also popular on YouTube and has helped to draw interest. Search engine optimization will be used in the future.
JadeDragon: I found you through the realcent forum, so your social media marketing tactics are working.
You make several unique products including a 6 oz silver pyramid ingot and poured copper bars. How have you found the acceptance of these more unusual products in an industry that is thousands of years old?
Market Harmony: Specialty products like these appeal to a very select group of potential buyers. Many of these buyers are looking for unique products or have a desire to be on the cutting edge of a new idea. The products to which you refer fulfill this cutting edge requirement. The uniqueness and relative rarity give them a collectible value above that of intrinsic value. The buyers realize this immediately and confirm it later when they show them off to friends and family.
Silver Ingot Market Harmony
JadeDragon: Are you willing to share any mistakes others should avoid?
Market Harmony: I did not develop a detailed business plan when I first created the company. I had only a rough estimate of the total costs involved. Regardless, I jumped right in. I’d have to say that the only accurate estimation that I made was the purchase price of 50% of the equipment. I had to get my hands dirty, literally and figuratively, to learn the actual costs of production. If I had done more research to learn more about the costs involved, such as consulting with similar companies, then perhaps the first years would have gone more smoothly and growth would have been accelerated. However, all the planning in the world can really only get you so far. Some things just have to be learned the hard way. And you’ll never learn until you take that first step… or make that first ingot.
JadeDragon: What are your goals for Market Harmony in 2010 and how might readers partner with you?
Market Harmony: I’ve earmarked 2010 as the year that Market Harmony should be able to grow into the form of my vision. The refining and toll production will be ramped up. Retailing partnerships, a stronger internet presence, and a certain level of sales will be the barometer of growth in established business lines. It is important that when any company wants to grow, that they set goals and develop ways to measure progress. Readers that would like to partner with Market Harmony should contact me with their proposals: michael (@) marketharmony.net
JadeDragon: Thank-you so much for taking the time to answer these questions. Readers can learn more about Market Harmony products here: http://marketharmony.net or through The Copper Cave, retailer of Market Harmony products and many other interesting bullion products.
Market Harmony: The pleasure is all mine, JadeDragon. Thank you for the great questions and the opportunity to answer them here. I wish you all the best.
Investing in precious metals provides a good hedge against inflation and is a solid choice for your future security.
Micheal will be happy to answer your comments and questions below.
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Jade,
I cant imagine buying a copper bar as an investment but you know the reason to buy PM’s is not to build wealth but is rather to store wealth in such a manner that it becomes immune to inflation. You really should buy big named bars though like Engelhard for silver and for gold stick with ASE’s , Krugerrands, Maples etc that have international recognition. If you buy this off brand bullion I’m sad to say you’ll take a serious hit if ever you wish to dispose of them as new age bullion has no collector value at all save for maybe some of the stuff put out by the Liberty Dollar program.
Steven
The copper bars are a novelty item, for people who like to have a big chunk of shiny copper on their desk. Any investment value is akin to stamp collecting.
There is a decent demand for poured bars among silver bugs, a demand that older bars can’t seem to completely fill. No issues getting at least spot for MH silver at a coin shop – same as selling a generic round or bar. I’ve noticed MH is attracting a decent following now too. For example I saw one 10 ounce (first serial # in a series) go in a spirited auction for about far over spot. Remember that premiums on smaller names are less then found on the big brand name bars, yet it is hard to get the big premiums when you sell. A little diversity is good too – some big name stuff if you can avoid the huge premium, some generic, and some from an up and coming producer.
Jade,
In USA getting old pour Engelhard’s is quite easy and if you go to the coin and bullion auction you can usually pay 10% under spot (or exact spot after 10% buyers premium is added). My honest advise is to stick to the big names like Johnson-Matthey etc for silver and for gold stay with Internationally recognized bullion, your Canadian Maples are excellent and low premium.
Honestly, My advise is to invest in pre-33 US gold and even old British Sovereigns because metals have gone up so dramatically that numismatic premiums haven’t had a chance to catch up. For example look at some pre-33 numismatic gold prices now then compare them to when gold was at 500 an oz, you’ll quickly see the premiums are out of line. This stated what logically should happen when spot price settles at a new floor about twice where the floor was before? I had been thinking this for some time but also read it discussed in coinage magazine some time ago as well.
Other than that buy keydates as keydate coinage is a good investment and as new collectors enter the numismatic arena the price can only increased due to demand, as for obvious reasons no more 1889cc Morgan Dollars or 1916d Mercury Dimes are going to be produced which they can use to complete sets.
Now isn’t it funny how COMEX gets to manipulate PM prices and devalue them by selling more than what truly exists physically? If you or I tried to do what they are doing it would be criminal.
Below are some sites you may like.
http://jsmineset.com
http://www.gata.org
Anyway, I’m sorry for taking up so much posting space but this article is really about something that interests me as I’m a bullion bug LOL. You know Id like to see one of the pyramid bars mentioned though as I feel it would look very unique though maybe not stack very well =)
Steven
Comments are welcomed – I’ve got unlimited hosting space. I tend to stick to bullion rather then key date coins because I’m more attracted to low premium over spot stuff. I like coins but not enough to pay hundreds of dollars for collector value driven by a little date and mint mark. Much the way I treat real estate – buy for intrinsic rather then ascetic value. Nothing wrong with collecting coins if you enjoy it though. A knowledgeable person can make good money buying and trading rare coins.
The point of the interview was to talk about business, marketing and online social marketing – but the shiny stuff is sure fun to ogle.
Did you see my slightly older post on Coin Roll Hunting?
Jade,
Yep I saw it. That’s actually how I first got interested in coins many years ago but now I also earn money as a coin dealer by going to auctions etc. While looking through rolls you should also look for modern keydates though like the 1982p, 1983p and 1983d US Washington Quarters as you can sell them on Ebay at 3 bucks a quarter or can sell them by the roll at 30-40usd to dealers. I used to go get 2,000+ dollars worth of rolls at a time and search through them on a bi weekly basis and it did well but I eventually grew tired of doing it.
Have you tried Craigslist? You’d should put ad on there saying you want to buy silver or gold as unbelievably people will contact you wanting to sell at 15% under spot. I’m not sure if same works in Canada though as here in America we are far behind times in regards to PMs unlike in bullion loving nations where you can actually walk into banks and buy and sell bullion at daily pricing.
Now Ive given myself ideas for at least 10 new Ehow articles so I better go get started writing while crossing my fingers that the articles actually get published !!!!!!! HEHEHE
Steven
There are both online and physical storefronts which carry the Market Harmony products. The “name brand” status that Englehard and JM have established only carry premiums when being sold to an individual. But carry no premium, that I am aware of, when selling to a dealer. Today’s technology makes verification of purity quite easy and dealers will pay equally for any type of 999 fine bullion. Take a Market Harmony 10 oz bar and a JM 10 oz bar to a dealer, and he should pay you the same amount for each. Both are made to industry standards for purity.
With this in mind, it would be prudent to look at the premiums that have to be paid to acquire each type. Other than the rare internet deal, I’ve yet to see 999 bullion sell for less than spot. The “brand name” status is something that the individual has to pay for, not the dealer. So, it would naturally trickle down to the price paid as the determining factor for the “quality” of your investment. Paying a premium for brand name bars does not necessarily carry over to the sell side. This may not be the case for a small sale from one individual to another. But the big buyers are the dealers, and they can handle the divestiture of your complete bullion investment. Imagine that you have 300 kilos of silver. Your potential individual buyers are limited, so it would be best to go to a dealer if you do not have the time to spend on dividing the investment into smaller lots for sales to individuals. The dealer will pay you close to spot for it. Would you rather have paid a higher premium for the brand name or a lower premium for products like Market Harmony’s?