When you are looking into buying gold, silver and precious metals, it is hard to find a dealer that is honest about the current price of gold and won’t rip you off. This article will teach you the main things to think about when you are buying gold or silver for the first time.
Bullion dealers have to make enough money to afford security and still make a profit. So dealers usually have a 3% profit margin. Vendors have a profit margin from 15% to 50% on premium items such as collector coins.
So check the prices on the items your buying if it is around 3% more than the gold or silver price on non-premium items, or 15% – 50% more on premium items it is probably safe and you are getting a good price on the item you are buying.
Being updated on gold and silver prices
It is important to always be updated on the gold price. Try to look at the prices regularly, for example when you wake up in the morning before you eat dinner and right before you go to sleep.
The “Gold & Silver” app are available on Android and iPhone and will keep you updated on the Gold and Silver prices.
When you are making a payment online you should always follow the 7 tips for safe online bullion shopping.
- Buy from the larger more established website. Larger vendors can afford to pay you back if something happens with your order
- When you are buying from a website you should always look for the “https” at the start of the URL.
- You shouldn’t tell people that you have bought precious metals. Even though you know they won’t steal it, they may tell it to someone who will without realizing it.
- Do not wait for the bill to come at the end of each month, check your bank statement regularly.
- Use strong passwords. Try a password manager like “Lastpass” to have strong and different passwords for all your accounts without remembering them.
- Compare different vendors, do not always compare the price but look at the vendors that seem most legit and that have the best customer reviews.
- If you can pay through a third party do it. Use third party products like PayPal to keep your bank account safe from scammers.
Trust your instincts and use common sense
You should be safe if you trust your instincts. Buying online is almost like going into a physical shop. You can sense if something seems off. And lastly, if the owner of a website won’t share his real identity, do not buy from him. There is no reason to hide your identity when running an online business.
Good luck, you are ready to buy your first oz of gold.