How to Find the Best Dealers and Buy Gold & Silver Like the Pros

ebay, ebay precious metals, how to buy gold ebayYou have a few different ways to buy gold and silver. When you’re first starting out, you can find somebody on Amazon.com or eBay if you don’t know anyone and are starting from scratch. EBay auctions can be great places to buy small amounts of silver, a coin or two at a time, until you establish a relationship with reputable dealers you trust.
When you first start a relationship with a dealer, it’s important to test them. Start with a small transaction. Build a relationship and see how they operate.

Questions to Ask When Picking a World-Class Dealer:
The most important part of your relationship with a dealer is reliability and honestly. If you don’t know anybody and no one you know can recommend anybody they’ve done business with, the Better Business Bureau is a great place to go. It’s worth it to look at the complaints and the reviews. You really don’t want to work with anyone who has lower than an “A” rating.

  • How old is the company? You can see this on the BBB website. I like companies that have been around for years – and decades is even better.
  • What’s their buyback policy? Are they transparent or is it confusing? You should specifically ask if they’ll buy back the items you’re buying from them. What’s their spread? This means, what’s the difference between what you’re paying and what they’ll pay you for the same thing. A very small spread is what you want. This means the item doesn’t have to double in value for you to break even.
  • How long does it take to get paid for items you want to sell? With reputable dealers, you can have money as quickly as two or three days from the day you call to sell anything.
  • Do they have a brand new office building with lots of overhead? If yes, I suggest you run away. A new shiny building means huge overhead, and all of that expense gets passed on to you, the customer. I prefer online dealers or dealers who’ve been around for decades in old brick buildings without mortgages.
  • Does someone in the company leadership have gray hair? If everyone is fresh out of college, you’d be wise to move on, because you’re most likely dealing with wildcatters who weren’t around during the last cycle. They have no idea what it’s like to be in a gold and silver boom/bust. And they’re often trained only in selling to you rather than protecting your wealth with hedging strategies.
  • Television commercials…do they have any? If yes, RUN! I say to run, because television commercials cost a ton. The money to pay for those ads comes from…yep, highly marked-up products!
  • Are you a collector of relics, or are you an investor wanting to hedge and diversify into commodities? If you’re a diehard collector, then your local coin shop is the best place to go and poke around for old coins, hold them, and gaze into history. If you’re an investor and want to diversify and hedge with gold and silver, you want a dealer who sells bullion, period.

 

The Test
I highly encourage you to test the dealer by doing a small trial purchase. Buy some silver Eagles or a gold Eagle or Maple Leaf. Do you feel pressured? Did you get pushed to buy something you didn’t want or don’t really understand? Then call the dealer about three weeks later and tell him you’d like to sell the item you purchased back to him. See what happens. You’ll learn a ton by going full circle, buying and selling from the same place. silver eagle, how to invest in silver, tips cheap silverQuestions to ask the dealer:

  • What’s the current price above spot?
  • What’s the total amount for the order?
  • Will the dealer buy back the product he’s trying to sell you and, if so, at what price? Scammers and rip-off artists will either not buy the products back or will buy them back for a giant discount. Solid dealers make a small spread (3% to 5%) and will be happy to buy anything back from you at any time.
  • Ask yourself if the dealer is more focused on educating you or selling you on the reasons to buy now.

 

Paying for It
If you’re buying anything with a credit card, it will be about 2.5% to 3% more than if you use cash, a check, or wire. With cash, check, or wire, you should expect to spend about 5% over the spot price on Gold Eagles and about 10% over spot on Silver Eagles. The more you buy, the better pricing you’ll receive – and you’ll likely get free shipping, etc. We offer complimentary FEDEX shipping on all orders over $1,000 and better pricing on quantities of five or more coins of any size.

Gold or Silver
Silver is likely to be a better performer, because it’s more undervalued then gold. At the same time, silver tends to be more volatile than gold. Therefore, the more aggressive you want to be, the higher percentage of your money you might want to put in silver. I prefer something like a 3:1 split: 75% silver and 25% gold.

Liquidity
Liquidity, or “being liquid,” means your assets can be converted into cash quickly and easily. In regards to gold and silver, this means you’d be able to sell the coins or bars anywhere in the world at any time for a consistent price. Being liquid, you would not have any problem trading them for the local currency. With bullion bars and coins, it’s easy to identity how much gold and silver are in them. Typically the amount is stamped right into the gold (or silver). Any dealer anywhere will accept them. The opposite is generally true for collectible coins.

buy gold like pros, gold summit, gold dealersSelling During a Panic or Bubble
During panics or a bubble collapse, dealers and smelters are overwhelmed with people selling metals. The best dealers and brokers will have access to the wholesale market and be able to provide you with an avenue to sell your gold and silver anytime you want at current prices. If you don’t establish a strong, personal relationship in advance – before you need it – you’ll be in line with everyone else, way behind those who established these relationships.

Fair Pricing
If you’re buying small quantities, eBay and Amazon are usually the best sources to buy at competitive prices. When you want to buy several thousand dollars worth of metals or more, the most important thing is to make sure you’re dealing with a dealer you trust, not just the best price. A great way to cut to the chase with a dealer is to ask what they’ll pay for items they’re selling to you should you want to sell them back. A sound dealer will be able to instantly tell you what their buyback price is without any hesitation at all.

The more popular gold and silver get, the more often I run into offers to buy gold and silver at prices 1% or 2% less than what I pay from my favorite dealers. I don’t bother going to the cheapest place, because I have a relationship and a ton of trust with the companies I’m already working with. Establish a relationship with a dealer you like and stick with them. Knowing you’re working with a sound dealer is usually worth much more than the few pennies you might save from the wheeler-dealer of the week with cheap prices.