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November 4, 2009

November 4, 2009 – There are thousands of gold and silver dealers across the United States, and just as with any industry, the various firms differ in size, business model, and reputation. By making your investment with a reliable and reputable company, you give yourself an immediate advantage over the thousands of other gold investors who fail to do a thorough background check.

By dealing with a large-volume exchange, you’ll be able to see more competitive pricing. Some firms resort to celebrity endorsements and costly advertising to lure potential buyers, but investors who utilize these firms often pay in excess of fair market value for their precious metals. Another advantage of large-volume gold and silver dealers is that they conduct business with large financial institutions, so institutional discounts are sometimes available for household investors through market-makers like the Certified Gold Exchange.

Most precious metal dealers use commission-based compensation plans for their brokers. If possible, invest with a company that pays their brokers a salary. Commission structures can create awkward situations when investors decide to sell. Oftentimes, the broker ends up making more on the trade than the investor!

Reputation is the backbone of the gold market, so be sure to only deal with reputable, long-standing companies. Check Better Business Bureau (www.BBB.org) reports and the Amazon Alexa (www.Alexa.com) customer satisfaction index.

Gold and silver dealers trade regular bullion, as well as certified coins. Brokers recommend a 20-30% hedge in precious metals, and they usually recommend bullion products for holding periods of 1-14 months. If you plan to hold any longer than 14 months, and if you want palpable security for your portfolio, certified gold and silver coins may be a better fit. Contact www.GoldSilver.org at 800-300-0715 to find your precious metal exchange today. 

Shannon King

Senior Staff Writer – GoldSilver.org

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