What Are the 7 Questions to Ask When Choosing a Dealer?

finding the right dealer, questions for buying goldQ: What questions should I ask when looking for the perfect dealer?

A: The most important part of your relationship with a dealer is reliability and honestly. When evaluating a potential dealer to do business with, always ask these seven vital questions:

1. How old is the company? Companies that have been around for years – and decades is even better.

2. What’s their buyback policy? You should specifically ask if they’ll buy back the items you’re buying from them. What’s their spread (the difference between what you’re paying and what they’ll pay you for the same thing)? 3%-6% is ideal.

3. 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.

4. Do they have a brand new office building with lots of overhead? A new shiny building means huge overhead, and all of that expense gets passed on to you, the customer.

5. 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. And they’re often trained only in selling to you rather than protecting your wealth with hedging strategies.

6. Television commercials…do they have any? If yes, RUN! Television commercials cost a ton. And the money to pay for those ads comes from highly marked-up products.

7. Are you a collector of relics, or are you an investor wanting to hedge and diversify? 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.