American gold coin treasure hoard of the rare USA double eagle 20 dollar bullion currency coinage used in the late 19th century as America money, stock photo image
Jumping into the world of gold investing is an exciting endeavor. Of course, it often involves making major purchases. There are plenty of options out there, but many people have difficulty choosing whether to buy gold coins online or from their local dealers.
This is an understandably tough decision to make. There are benefits and disadvantages to both options, so it really comes down to getting the most for your money. When making an apples-to-apples comparison, though, buying from online dealers is simply the way to go.
At Silver Gold Bull, we understand how that conclusion may sound biased coming from an online gold dealer. We strive to ensure our clients are always informed, however, so the following guide will explain exactly why buying gold coins online is the best way to invest in precious metals.
There are plenty of retailers that might offer the chance to invest in gold. On top of bullion dealers, you’ll often find precious metals at pawn shops, jewelers and coin dealers. Each of these retail options have one fatal flaw: they’re not online bullion dealers.
This isn’t a simple opinion. There are real advantages to buying gold coins online you won’t get from local dealers. If you still want to buy locally after learning these benefits, at least make sure you’re working with a reputable retailer. Even local dealers can offer bad experiences.
Many local bullion dealers have impressive selections of gold coins. When compared to the offerings from online and national dealers, however, those selections are meager. Large retailers simply have better infrastructure and thus access to more coinage.
For instance, Silver Gold Bull works directly with mints and refineries from around the world. We also have access to entire vaults of bullion our other clients decide to sell. If you’re seeking a specific item, buying gold coins online provides the best chance of finding it.
There may be local precious metals dealers in your area with decades of experience. They certainly have massive amounts of knowledge you could benefit from. Unfortunately, even the most seasoned local bullion dealer can make mistakes due to a lack of resources.
We saw this play out when several dealers told a man that his $5 million gold coin was a counterfeit. Determined that it wasn’t, the man sent it off to a grading company. He learned that other dealers had been wrong all along. He fortunately trusted his gut instead of “expert” opinions.
When buying gold coins online from reputable dealers, you’re gaining access to all their expert resources. Working with local dealers might not cost you $5 million, but you still want to deal with the most knowledgeable dealers.
If you search “bullion dealers NYC” — the most populous city in America — most results have only a few dozen reviews. While these can be helpful, gold is a significant investment that requires all the information you can get. If you choose to buy gold coins online, that’s just what you’ll receive.
For instance, searching TrustPilot for Silver Gold Bull reviews returns more than 2,800 results as of September 2021. That’s because we serve customers from around the world. You can get a far better idea of who you’re buying from when there are more online testimonials on the business.
One of the main reasons people shop with local dealers — which we’ll discuss more in-depth below — is to avoid potential scams. We’ve all heard horror stories of online swindles, and this leads many people to shop locally. After all, who can you trust if you can’t trust your neighbors?
Unfortunately, local dealers aren’t always what they seem. A report from CBS put the problem into perspective:
“Crooks go where the money is. Right now, that’s in the gold market. As the price of gold has soared, an increasing number of consumers say they’ve been taken by unscrupulous fly-by-night gold dealers.”
This happens when people deal with unknown dealers online, but it can also take place right in your community. Brick-and-mortar businesses can engage in unscrupulous tactics, but you may also fall victim to traveling gold buyers and sellers. Unfortunately, “local” isn’t always local.
You can avoid this potential issue if you buy gold coins online. Simply find a dealer with great reviews and a stellar rating from the Better Business Bureau. You should do this when making any investment as significant as precious metals.
Just months into the coronavirus global pandemic, a surprising headline went out on the MarketWatch website. It stated clearly, “‘There Is No Gold’: Bullion Dealers Sell Out Amid Panic Buying.” In just a few months, many local dealers simply didn’t have bullion to sell.
This isn’t to say you won’t encounter supply issues when buying gold coins online. It’s just far less likely that you will. Whereas local dealers may run out completely, online retailers may only set order limits. National dealers simply have improved access to private and public mints.
With all the benefits of buying gold coins online instead of locally, why do some folks still shop close to home? They often assume they’ll receive a more favorable deal and better customer service. As we discussed at length in the preceding section, though, this simply isn’t the case.
Even with these fallacies dispelled, some people will still choose to shop locally. This is often based on a feeling of responsibility to their community. They feel as if sending their money to non-local vendors is a kind of betrayal to their neighbors.
Unfortunately for those in the “buy local” movement, The Library of Economics and Liberty disagrees with this assertion. In fact, they’ve made their expert opinion fairly blunt:
“The last thing consumers should be swayed by are appeals to guilt, to a false sense of community obligation, or to economic arguments that, upon close examination, prove to be full of logical errors. Buy locally or globally or anything in between.”
The simple fact is that the idea of buying everything locally simply makes little sense. This is particularly the case when purchasing bullion or similarly high-end items. That’s why buying gold coins online is your best bet. And in some ways, doing so could actually help your community.
We see this seemingly inconsistent belief expressed in an issue of Forbes. Their articles are meant to explain complex ideas to normal people. There are times, however, when the titles say it all. This one was pretty blunt: “If You Buy Local You’ll Have Less Money to Spend Locally.”
If you’re paying high premiums instead of buying gold coins online, you’ll have less money to spend in your community. Take advantage of the price-saving infrastructure created by national dealers. This will leave more money for produce, prescriptions and other items you should buy locally.
When buying precious metals, it all comes down to value. You’re making an investment, and getting your money’s worth is paramount. Unlike stocks and other securities, there is no set price or central market controlling the purchase and sale of gold and other bullion items.
If value is your motivating factor — which it certainly should be — then buying gold coins online instead of local is ideal. The benefits are simply too many to ignore. Of course, you’ll miss out on many of those benefits if you don’t work with a reputable dealer.
At Silver Gold Bull, we strive to offer each of our clients the best experience. In addition to a massive selection and stellar customer service, you’ll receive our Best Price Guarantee for every item on our site. Visit our Gold Bullion Products page today to see why we’re the best.
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