What’s the Best Place to Buy – EBay or Dealers?

sack of money, cash gold, money gold cashQ: Should I buy from a dealer, or can I get better deals on eBay?

A: They each have their place, depending on your situation.

Online Retailers

Amazon or eBay are great options if you don’t know anyone and are starting from scratch. It’s a great way to locate a dealer and see how they operate, how they communicate, and overall how they treat you. Amazon and eBay have strong buyer protection systems. You’re going to pay a premium using either of these, but in the beginning I suggest using them until you’re comfortable buying direct from a dealer you’ve built trust with. I highly recommend buying from people with 99% to 100% positive feedback and a long-term track record of world class service. You can see this from the testimonials tied to any dealer on eBay.

Dealers

My favorite way to find a new dealer is by referral from someone I 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. See if they do what they say they’re going to do. Do they ship when they promise to? Do they give you something different from what you thought you were buying?

A great dealer makes a fair profit and provides you CERTAINTY about the transaction. The last thing you want to do with a great dealer is screw around with them on price when their margins are only a few percent, anyway. You’ll annoy them, and they’ll stop taking your calls. The most important part of your relationship with a dealer is reliability and honestly.

Always ask a dealer how much they’d be willing to buy your coins back for when you’re asking them about the purchase price. The difference between the bid and ask price is called the spread. The bid is what they’ll pay you, and the ask is what they’ll sell them to you for. Stick with dealers who have a 3% to 6% spread.