Once you’ve decided to invest in precious metals, how do you decide who to deal with? It’s a question worthy of consideration as the bullion industry is generally unregulated so it doesn’t offer the disclosure and transparency you may find with other investment institutions. It’s the reason we established Bullion Biz; to give you clear, objective information to help you confidently select and transact with bullion dealers.
The good news is there are a number of highly reputable providers. As you’ll find, this section highlights the more clinical criteria you should consider when settling on one that’s right for you. That said, you can’t ignore the importance of a relationship that ‘feels’ right. Compatibility, knowledge, credibility and trust are great criteria upon which to build a mutually rewarding relationship. And should you find more than one that satisfies your needs, you might like to establish accounts with them too. Doing so can allow you to access different price offers, help you accumulate more metals and provide more options when you wish to sell.
In this section:
It’s difficult to find a dealer who’s right for you if you don’t know much about precious metals. If you feel unprepared, the best thing you can do is to revisit some of the previous educational sections of this site. Having done so, you’ll appreciate the key factors to consider in finding a dealer that meets your needs. After all, it’s important to find someone that’s right for you rather than end up being sold something that’s right for them.
Armed with your information ask yourself:
Having clarified these questions you can begin to cull your list of dealers. The Bullion Biz Dealer Comparison allows you to filter dealers by location, product brands and main services offered.
Armed with your list of potential dealers, there are now a number of questions you can ask to find a partner you’re most comfortable working with.
As mentioned, the unregulated nature of the bullion industry means there is little consistency of information disclosed by bullion dealers so comparisons can be difficult. Often you’re dealing with private organisations so you may not enjoy the transparency or protection offered by other financial institutions. Neverthless be patient; take your time and do your due diligence as it’s the only way you’ll find people you are comfortable dealing with.
Having found organisations that have the key products and services you’re looking for, what other factors do you need to consider? Here are a few suggestions:
1. Who are you dealing with?
Who is the organisation and who are the people you’ll be dealing with?
The better dealers will be more transparent, so you should be able to ascertain the above information from their website. If you can’t find much information, this could be a warning sign. That said, some dealers may omit information online for security reasons so ask the questions.
2. What is the dealer’s price positioning? In other words, are they offering good value?
Premiums can vary considerably across dealers, products and times. In the How to Purchase Bullion section we indicate some of these premium variations. Take a look at a few of the products you are interested in. This will show whether the dealer is competitive but be careful not to be influenced by short term specials or loss leaders. After all, you’re probably looking for a long-term relationship.
3. What are the add-on costs and are they competitive?
Not all dealers disclose these prices on their websites and they can vary considerably. Better to ask upfront rather than find out when you are confirming your order.
4. Does the Dealer offer volume breaks (discounts for larger quantities) and are they relevant to your purchase plans? If not disclosed online, ask the question.
5. Does they dealer buy back precious metals?
6. Advice & Education
Does the dealer have a good knowledge of the industry? Are they proactive in offering educational material and advice? The dealer’s website should indicate their history and how good they are with added value services.
7. Physical Security
If you’re dealing in person for bullion transactions, what are the dealer’s security features?
8. Information Security
Keep in mind you’ll be sharing personal information about yourself and your bullion transactions with your dealer. So make sure you’re comfortable your information is secure.
9. Convenience considerations
What other convenience considerations should you think about?
10. Value added services
Does the dealer offer any additional services that add value to your relationship?
To get started check out the Compare Dealers listing to find the right partner for you.
To continue to the next education section "Selling Your Bullion" click here.
Another solution from: