Due to reliable physical delivery systems and the Internet, it is now easier than ever to buy gold with confidence. Today, many physical purchases of gold in the United States are made online, where numerous large and small precious metals companies compete. When you type "buy gold" into your search engine, you'll be overwhelmed by the number of gold products available. Once you find a reputable gold dealers, you can buy hundreds of thousands, if not millions, of dollars worth of gold online and have it insured and sent to you with confidence that it will arrive safely. This is similar to buying a book on Amazon.com.Even though sending gold by mail sounds crazy, think about the win-win coin toss that comes with over-insuring:If you send $10,000 in gold but insure it for $12,000, you get $10,000 in gold and $12,000 in cash, respectively.
Every year, millions of dollars worth of gold are sent across the United States in packages that are usually insured and labeled in a way that doesn't reveal what's inside. Also, a million dollars worth of gold probably wouldn't be sent in one package! I bought some of my first gold coins, Swiss Helvetia coins from the 1920s, online. Nervously, I waited for the postal card telling me I could pick up the package at the post office, and I called the company that sold me the gold several times. Since then, I've sent and received a lot of golden packages across the country, always carefully packaging them and fully insuring them, and I haven't encountered any issues other than delays.
The gold business is not an exception to the rule of money-related scammers who are drawn to it. There are a number of stores, some of which are well-known in the community of precious metals dealers, that take advantage of novices who may be nervous about buying gold for the first time. These stores prey on the vulnerability of their customers. Here's an illustration:
The American Buffalo was the first U.S. coin minted in 24-karat gold (the previous ones were 22-karat), and it was released by the U.S. Mint in the summer of 2006. The release caused a lot of excitement, and many new buyers forgot that the coin was still just one ounce of gold and that tens of thousands of them would be made because they were afraid the newly issued coins could disappear forever. There was a particular shop that was openly selling these coins for $2,000 each on the internet because they were worth less than $750 each. As of this writing in the summer of 2007, you can easily purchase this exact coin online at any time, day or night, for less than $1,000.or for less per dozen! Buying gold frequently resembles buying a car: Even brilliant people with PhDs can become con artists. Keep in mind that the gold business isn't the only place where you can legally get scammed.
There are two ways to use the Internet to your advantage. First and foremost, look for a gold dealer who has been in business for at least a few years and with whom you can build a trusting relationship.
For any reason, don't talk to him or her if you don't feel comfortable doing so! A solid gold dealer can steer you away from bad deals and toward ones that could be good for the table. They want you to do it because they will lose your business if you are disappointed. Find an authorized dealer who is listed on the websites of the Numismatic Guaranty Corporation (ngccoin.com) or the Professional Coin Grading Service (www.pcgs.com). Check to see if the dealer's website lists the number of years it has been in business; a company with fewer than ten years of experience may be a problem.I believe that being a member of the local Better Business Bureau is a requirement that must be met on their website.
Second, after deciding what you want to buy, get a price from your dealer and look it up online. You can quickly determine how much you could save by shopping elsewhere by searching Google for the exact item you are purchasing, such as a one-ounce gold American Eagle coins from 2005. If you find that you can buy the coin for a few dollars less at a different shop that might not be as reliable, it might not be worth the trouble. However, if you need the coin for a lot more, you might ask your dealer if they can match the lower price. Although they might not be able to beat the price, you should think about how confident you are in the other dealer you found online. As with any purchase, be wary of excessively low prices because they may indicate trouble. Once you've decided to make your first purchase from a new store, you might want to start small and see how smoothly the process goes by using the company's website for an electronic transaction.
There is a market for physical gold: You can negotiate! If you don't like the price, let them know! But keep in mind something. Even if they are handling a $100 order for a person with modest means, gold dealers are accustomed to dealing in large sums, and they may have already discussed a $500,000 deal with another client. If you're buying two bullion gold coins for less than $2,000, you shouldn't think it's smart to get five dollars from the dealer after asking for a better deal. When the gold market heats up, you may find yourself begging for attention at that understaffed — as they all tend to be — shop, so it is best to make a friend. However, if you are annoying the dealer, you will probably be called last when he or she receives notice of a desirable new shipment of gold or silver coins that are likely to flow. If it's worth it, I'd suggest driving a bargain.
A dealer will appreciate your efforts to negotiate a fair price, but don't waste your time over a few bucks.
Talking to a real person rather than buying precious metals online can save you money. For online orders, the 24-hour prices you see on websites frequently are not always the lowest you can find.
Dealers frequently list prices that are just a little bit higher than what they would offer over the phone in order to protect themselves from an overnight rise in the price of gold, which is becoming increasingly common. Make an effort to negotiate a lower price by calling a gold retailer—most of the time, you will. A gold dealer, like most businesses, won't want to let you down because there are so many other places to buy gold thanks to the Internet. With a "Thanks, I'm not interested in anything else," you could save yourself a lot of money and avoid having an unpleasant conversation with someone who wants to sell you more.
The biggest mistake you can make, other than choosing the wrong gold dealer, is to fall into the urgency trap. Precious metals products frequently appear to be "running out" or are about to rise in price "like crazy," and the coin you are interested in maybe disappear.
Unfortunately, however, they will still be there tomorrow and next week. unless the market for precious metals is booming! Dealer inventories were being depleted, prices were insanely rising (especially for rare coins), and coins were disappearing from buyers when gold broke $500 and kept going above $600 at the beginning of 2006.Be patient, however, if the market is relatively stable at the time of your purchase.Before making a purchase, put your phone down or get away from your computer.
