When making any purchase, price is most always the number one consideration. We all know cheaper doesn’t always equal better, but cheaper is most definitely better for our wallets. Everybody wants the best price for their money and that’s why smart consumers know how to shop around. The same should apply when buying gold or silver, except there are a few more equally as important factors to consider when purchasing precious metal:
1) Check Availability: One tricky thing to watch out for is dealers who advertise products at lower prices to reel you in. In actuality they may not even have what you want in stock. They do this to catch your attention long enough to try and sell something else. In another scenario they may have the item in stock, but refuse to show it to you at that price depending on how low the metal price is at the moment. In each case you’ve wasted time before getting what you originally wanted.
2) Check Premium: Is the premium you’re paying worth what you’re getting? Sometimes the smaller amount of metal you buy the more expensive the premium can be relative to its size. Smaller bars and coins take longer to manufacture, therefore are more expensive. These premiums however do not make a difference when you decide to sell your metal, however. Most dealers buy back at or below whatever the metal is trading for. The smaller amount you have, the less you will sell it for. If you paid a high premium to begin with, then you might not make such a great profit in the end.
3) Check Re-buy: Obviously the only way to make a profit off your metal investment is to sell it! But that requires finding someone who will buy it. When you decide to buy from a dealer, make sure one of the questions you ask is whether or not they will buy it back from you. It will save you a lot of time knowing beforehand instead of spending hours searching for someone who will.