It’s a good idea to do a little research about online gold bullion dealers before you buy any gold. You don't want surprises down the road.
If you haven’t selected a product, click here for tips on buying gold bullion coins and bars.
Let's begin with how to identify reputable gold bullion dealers.
Like any major purchase, it's best to study a seller’s reputation and price before you buy gold bullion online.
Aside from the obvious - asking family members or friends for a recommendation - you can also check a dealer's rating with the Better Business Bureau (BBB).
It’s very easy to check a company's BBB rating. Go to www.bbb.org and enter the business website address or business name. There’s a good chance the dealer is registered if it’s an established business.
Listed below are online gold bullion dealers with BBB grades of A or better (on April 19, 2012). Please click on the links to read my comments:
It's simple to compare prices when you buy gold bullion online. Within minutes you can get pricing information from multiple gold bullion dealers with good track records.
Dealers constantly adjust their prices based on the floating spot gold price for one troy ounce of gold.
The per-ounce gold cost of each bid is an important number to know when you are buying gold bullion.
These values are found by first making sure all of the costs (fees, shipping, taxes) are included in the dealers' prices.
Then simply do the math to find each dealer's price on a per-ounce basis. If the product contains 1 oz. of gold, no calculations are necessary.
(i.e. ½ oz. = 0.50).
|Gram to troy ounce conversion: 1 gram = 0.032150 troy ounces|
Hopefully you are now better equipped to judge dealers based on their pricing and credibility. But there is more you should know before buying gold bullion.
You are usually expected to make a down payment with your credit card if you buy gold bullion online.
However, some dealers may require that you have the full purchase amount on deposit in your dealer account before an agreement is struck.
Common payment methods for funding your order are:
Some dealers add an upcharge for credit card and PayPal payments. Also, they sometimes include a processing fee for personal checks. Once again, it's wise to verify the total price before you make a commitment.
Do you want to open a gold retirement account? Read about a bullion dealer that specializes in gold IRA setups.
Generally gold bullion dealers do not accept cancellations or returns on gold bullion products. This is largely due to the fluctuating spot gold price.
That’s why dealers lock in the price once you reach an agreement. It protects your purchase price if the spot price increases and their profitability if it drops.
You usually have a few days to make your balance payment after you agree to make a purchase.
Your commitment is a legally-binding contract. So dealers can enforce their “no cancellation” policy if you break the agreement.
This means they have the legal basis to contractually compel you to pay them in full.
There are exceptions to the standard “no-cancellation” and “no-return” policies of gold bullion dealers.
Dealers that allow cancellations or returns usually apply penalties and/or restocking fees. You are also obligated to pay the difference in value (offset) if the product’s gold value dropped after the purchase date.
A dealer has the right to charge your credit card for the cancellation and offset fees mentioned above if you fail to fully pay for your gold bullion.
The good news is most reputable gold bullion dealers will offer to buy back the products you purchased from them.
However, the buy-back price is usually less than the retail price you paid, unless the spot gold price has increased sufficiently.
When you buy gold bullion online, it’s important to make certain your gold is insured before it ships. The shipping terms should also specify “registered” (if USPS) with signature required.
Your gold bullion usually ships within days of when the dealer is paid in full and the funds have cleared. The dealer should also give you the tracking number so you can track your package until it’s delivered to you.
Knowing the expected delivery date will help you make sure a trustworthy person is at home to sign for your package.
To find a dealer's terms, try scrolling down to the bottom (footer) of any page.
Look for links with the words “terms,” “conditions” or “agreement” in the text link. Or use their site search engine (i.e. shipping).
You might also find useful purchasing information on the dealer's frequently asked questions (FAQ) page.
I hope these hints help you when choosing gold bullion dealers. Please select a link from my navigation bar (upper left) to learn more about precious metals.Return from Gold Bullion Dealers to Gold Bullion & Silver Bullion (Home)
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