Gold and Silver, Phone Orders, Local Dealers and Coin Shows
Purchasing bullion coins over the telephone from a local dealer or from a coin show is more time consuming than buying online but there are some advantages to each method.
Phone orders from a reputable seller can be just as easy as an online order form.
To place an order, you have to call the seller's 1-800 number.
While you're on the phone the dealer will quote the current price and calculate the total price with the premium, shipping and insurance costs added in.
If the price is right, make a deal to lock in your purchase at the quoted all-in price.
Typically you have to put up your credit card as collateral and a basic contract is written obligating the dealer to sell and you to buy at that price, regardless of what later happens in the market.
After you lock in your price, gold may go to $10,000 an ounce, you still bought at that contracted, locked in price.
If gold goes to $1 per ounce you still bought it at that contracted, locked in price.
Just like any other investment, once you lock in the price, you and the seller are subject to market risk.
After you enter your purchase order, you must send payment within a specified time period.
You should be aware of the payment methods prior to placing your order.
Most coin dealers won't accept credit cards other than for the initial collateral because the credit card fees eat up their profits.
Typical payment method are by personal check, United States Post Office money order, cashiers check or bank wire.
If you send a personal check, the dealer will withhold shipment until your check clears.
You should ask what the expected shipping time is and as always, insist on a tracking number for your shipment.
You should also be aware of their buyback policy and price.
If you choose to liquidate some of your holdings you should know the process and feel comfortable that you can sell back to the dealer.
Understand what the current buy price plus premium/discount looks like, what additional costs, shipping and insurance are and how and when would be paid.
When you find a good dealer you may be able to develop a personal relationship, ask them for tips, discounts, deals and what to avoid.
Your relationship with a knowledgeable dealer can last a long time as you build your physical inventory.
One of the disadvantages is you'll have to do a little bit more research to discover the premiums and shipping costs.
Often, a bullion dealer that accepts only phone orders will have a skimpy website will little information, a small catalog and few instructions.
You have to call to find out! Of course you will leave some traceable record with this dealer unless you ship them a bundle of cash, not recommended.
Local gold dealers and coin shows have the advantage of a relatively anonymous transaction.
Depending on state regulations you may be able to pay cash and carry.
Over time a trusted relationship with your local gold coin dealer may be the best way to build your physical inventory of gold, silver or other precious metals.
They may have a lower premium or higher than online providers but there won't be any shipping costs or insurance.
On the downside you have to travel to get to your local dealer carrying large amounts of cash in public which can be risky.
There may be only limited anonymity depending on what the dealer requires to make a purchase.
You should find one that will take cash, has a tight bid/offer spread and is always willing to transact at those prices.
Coin shows are a wonderful opportunity to measure competition in a market environment.
You can see multiple gold and silver coin dealers side by side all in one place and make your purchase from the dealer with the best product and price.
Be cautious at these shows as the transitory nature of the shows can attract all levels of quality, service and business ethics.
If you're willing to accept some risk of purchasing from an unknown party you may be able to get a better deal but buyer beware.
All the issues of travelling to a local dealer, carrying cash, negotiating prices are the same at the coin show as well as paying the entry fee and having to buy a sausage on a stick or some beef jerky for the kids.
Due diligence is key, be careful out there and remember, your paper money is soon going to be worth every ounce of paper it's printed on!
Phone orders from a reputable seller can be just as easy as an online order form.
To place an order, you have to call the seller's 1-800 number.
While you're on the phone the dealer will quote the current price and calculate the total price with the premium, shipping and insurance costs added in.
If the price is right, make a deal to lock in your purchase at the quoted all-in price.
Typically you have to put up your credit card as collateral and a basic contract is written obligating the dealer to sell and you to buy at that price, regardless of what later happens in the market.
After you lock in your price, gold may go to $10,000 an ounce, you still bought at that contracted, locked in price.
If gold goes to $1 per ounce you still bought it at that contracted, locked in price.
Just like any other investment, once you lock in the price, you and the seller are subject to market risk.
After you enter your purchase order, you must send payment within a specified time period.
You should be aware of the payment methods prior to placing your order.
Most coin dealers won't accept credit cards other than for the initial collateral because the credit card fees eat up their profits.
Typical payment method are by personal check, United States Post Office money order, cashiers check or bank wire.
If you send a personal check, the dealer will withhold shipment until your check clears.
You should ask what the expected shipping time is and as always, insist on a tracking number for your shipment.
You should also be aware of their buyback policy and price.
If you choose to liquidate some of your holdings you should know the process and feel comfortable that you can sell back to the dealer.
Understand what the current buy price plus premium/discount looks like, what additional costs, shipping and insurance are and how and when would be paid.
When you find a good dealer you may be able to develop a personal relationship, ask them for tips, discounts, deals and what to avoid.
Your relationship with a knowledgeable dealer can last a long time as you build your physical inventory.
One of the disadvantages is you'll have to do a little bit more research to discover the premiums and shipping costs.
Often, a bullion dealer that accepts only phone orders will have a skimpy website will little information, a small catalog and few instructions.
You have to call to find out! Of course you will leave some traceable record with this dealer unless you ship them a bundle of cash, not recommended.
Local gold dealers and coin shows have the advantage of a relatively anonymous transaction.
Depending on state regulations you may be able to pay cash and carry.
Over time a trusted relationship with your local gold coin dealer may be the best way to build your physical inventory of gold, silver or other precious metals.
They may have a lower premium or higher than online providers but there won't be any shipping costs or insurance.
On the downside you have to travel to get to your local dealer carrying large amounts of cash in public which can be risky.
There may be only limited anonymity depending on what the dealer requires to make a purchase.
You should find one that will take cash, has a tight bid/offer spread and is always willing to transact at those prices.
Coin shows are a wonderful opportunity to measure competition in a market environment.
You can see multiple gold and silver coin dealers side by side all in one place and make your purchase from the dealer with the best product and price.
Be cautious at these shows as the transitory nature of the shows can attract all levels of quality, service and business ethics.
If you're willing to accept some risk of purchasing from an unknown party you may be able to get a better deal but buyer beware.
All the issues of travelling to a local dealer, carrying cash, negotiating prices are the same at the coin show as well as paying the entry fee and having to buy a sausage on a stick or some beef jerky for the kids.
Due diligence is key, be careful out there and remember, your paper money is soon going to be worth every ounce of paper it's printed on!
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