One question people ask me from time to time is, why should I buy my silver and gold through a dealer instead of just buying privately off say Kijiji or Craigslist?
Occasionally you’ll see amateur dealers pop up on these internet classified sites or sometimes it’s just a private person who is selling off their portfolio. It can sometimes be seductive to deal with these private parties because sometimes they will sell for a little bit below what a dealer is selling for. That’s fine, but here are some things to consider:
1. Is the silver or gold I am buying authentic? A quick search of the internet and you’ll find dozens of Chinese companies selling fakes in bulk, of all the popular bullion brands. Are you confident enough in your ability to spot the fakes?
A reputable dealer with a physical location will only sell authentic products because their livelihood is based on their reputation. A guy off an internet site can disappear into the sunset, poof!
2. What if I need to sell my gold or silver, will this person buy it back? Most armchair dealers of the internet or private guys won’t buy back what they sell because that’s why their selling, they don’t want it anymore!
A reputable dealer will have the cash or resources to get the cash to help you sell your portfolio when your ready to do so.
3. Am I safe meeting this person? A few coins is not a big deal but with precious metals the amount of cash and value of metals can be in the thousands, even more on a very large purchase. Will you be comfortable carrying that much cash to a coffee shop, bank lobby or even the persons house? Can you be completely assured you will not be robbed? What about other people watching the transaction in a public place, could they follow you home or into the parking lot?
A reputable dealer with a physical location offers a secure way to purchase and sell precious metals in a discrete environment monitored by security cameras for your safety and theirs.
4. What payment methods will they take? Chances are cash only!
A reputable dealer will likely accept many forms of payment. In our store we take bank drafts, cheques, cash and debit as well as credit cards. Of course, subject to holding periods etc. on some forms of payment.
Just a few things to think about before you meeting that potential serial killer in the parking lot to buy a few coins (Just kidding) kind of 🙂
Gotta Fly – Aaron