A Beginner’s Guide for Choosing the Right Gold and Silver Dealers

A great gold or silver dealer will make the buying and selling process as easy as possible.

When it comes to investing in silver and gold for the first time, the numerous available options can prove to be overwhelming. Customers should rest assured that there is no “wrong” or “right” way to purchase silver or gold bullion. 

Although there are some basic recommendations to consider when doing your initial research, purchasing precious metals is all about determining the alternative that best meets your needs. 

How much money should you invest?

The spot price shows the current market value of the precious metal and serves as the basis for the gold bars valuation. These prices are constantly changing, so it is essential to find the latest spot prices. 

Once the spot price for a given precious metal has been established, it is imperative to investigate which precious metal traders are closest to the original spot price. These traders will provide the lowest premium. 

As there are lots of scams happening worldwide, you should be aware of fraud dealers. Choosing an appropriate dealer will be very fruitful. Here are some in-depth reviews of Goldco, which you might find very informative.


Be Careful about the Gold Dealers

Not every dealer is the same; some are legit, and some are a total fraud. Buyers should carefully research each dealer they consider sending money to as the gold or silver dealing industry is unregulated; bankrupt or convicted people have some of the most attractive websites and most liquid brokers. 

First, go to their website and click on “About Us,” which must be provided by the company administrator. Then Google the name, followed by information about bankruptcy, conviction, and lawsuit. It will show you the result relating to scams if there are any.

Another way is to have a Better Business Bureau (BBB) ​​check in the area where you live. Remember one complaint could indicate that ten other dissatisfied customers do not have time to post negative reviews.

Investors have lost more than $ 100 million in bankruptcies and outright fraud over the past four decades.

Another sign that companies are hiding something is that their “About Us” page does not reveal its personality. Instead, their commitment to the industry, fast delivery, or lower price was well received.


Finding the Right Dealer and an Appropriate Price

Taking the time to check your status can not only ensure that your products are legally sourced, but you can also learn about various policies related to the sale of precious metals, such as taxes and reporting.

You should also pay attention to their different policies regarding shipping and payment methods to understand if they can meet your needs.


Choosing Gold or Silver Bullions

After finding the right dealer, the next step is to identify the type of precious metal products you want to buy. Clients should also ensure that they understand the rules for premiums and investment returns associated with these options.

Some common forms of gold and silver include gold coins, discs, and bullion. Coins have become the most recognizable form of gold bullion due to their use as currency. Its incredible design makes it an ideal solution for clients who want to show off their investment. However, due to government restrictions on coins, the number of coins produced is often limited to be used as collectibles and investment items.

The round, disk-like shape often mistakes rounds for coins. Although the bonus rate is lower than the coin bonus bet, it should be noted that the bonus bet increases and decreases vice versa with the size of the round.

Bar charts are the most popular option among traders because they are like rounds, offering a lower premium than the spot price, decreasing as the bar chart’s size increases. Therefore, the bar is more suitable for customers who want to make a significant investment by buying bulk.


Payment Methods

Although approved payment options differ by merchant, debit or credit cards, paper checks, PayPal, and wire transfers are by far the most standard payment methods. Similarly, customers are advised to check with their reseller which payment methods are available and the rules or restrictions associated with those payment methods.

Customers who prefer instant payment methods will benefit the most when making purchases with credit or debit cards or PayPal. 

Customers who do not care about the length of the settlement period but want to pay the purchase cost in full are encouraged to use paper checks or wire transfers.


Storage and Security

For customers who need immediate use of precious metals, home storage is the best option. Unfortunately, sometimes you expose your gold and silver to conditions such as moisture that can cause physical damage. 

Although the price is slightly higher, the safe can provide additional protection for your gold and silver. The main disadvantage of both forms of home storage is that once someone finds out that someone is storing precious metals in their home, they can become the target of robbery or even armed robbery.

Customers who are unwilling to store precious metals at home can keep their valuables in banks or precious metal warehouses. These institutions have a high level of both internal and external security. They will also have the absolutely best-storing facilities for gold and silver at their warehouses. These third-party platforms are pricey and complicated to find, but they offer additional security for you as well as your resources.


Purchasing Online or Buying from Local Vendors?

Perhaps the primary decision you need to make when choosing a seller is whether you want to buy precious metals from an online retailer or your local coin store. A local agency allows customers to view the product before physically purchasing it.

However, buying precious metals locally has many disadvantages. Local coin stores charge a higher premium rate than online stores to cover handling fees. Due to current store conditions and customer restrictions, local coin stores often choose only a limited number of precious metal products. Many local coin stores are twice the resale stores size, so most of their merchandise is second-hand.

On the other hand, due to its more extensive customer base and the fact that its virtual storefront provides unlimited pages to display its products, the range of online retailers’ options is usually greater. Another advantage of online retailers is convenience. If you purchase from local coin-stores, you have to visit specific locations during their business hours, while online retailers allow you to shop from the comfort of your home at any time. 

Lastly, online traders also provide additional protection for you and your investments. Reputable online distributors will contact Mints directly to ensure that the products received are genuine. More importantly, online retailers allow you to shop privately, preventing you from becoming a potential theft target.


Losing the Invested Money

You risk losing a lot of money in silver and gold capital markets in a variety of ways, including bankruptcy.

Buying collector’s coins, investment coins, or other company coins is almost a guaranteed way to make money.

Most distributors who advertise on radio and television (telemarketing) list their products between 30% and 50%. We have seen some coins labeled 100%.

These companies have good reasons to invest in gold, such as rising public debt, huge budget deficits, the quantitative easing plan of the world’s largest central banks, and the possibility of another global financial crisis. 

The most frequently promoted high-yield coins are the old American gold coins. Additionally, investors who wish to include precious metals in their IRA are advised to use refined Native American gold.

Antique US gold coins are not IRA-eligible, but Test Gold Eagles and Test Silver Eagles are eligible. A refined coin looks beautiful and is the result of repeated minting. Currently, the US Mint only produces dummy coins because they have a strong market that comes primarily from telemarketers selling tokens.

The prices of proof set coins are more difficult to track, and telemarketers say they generate higher returns during a bull market, contributing to this situation. The price history test is the opposite. In a growing market, the returns of refined gold coins are lower than those of gold and silver coins.



Many new dealers and distributors are not committed to the hard money concept. They simply use their marketing skills to sell precious metals like gold, silver, palladium, etc. Typically, these dealers do not have an inventory.

The downside is that orders placed with non-involved companies result in two companies having access to the buyer’s name, address, and phone number – one kept by the retail company and the other wholesaler. 

Suppose the retail company director decides to leave the industry and sell the business to another company. In that case, these names and related information can be used to place high-profit coin orders.

FG Editorial Team
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