Things that reputable Bullion Buyers will NOT do

Things that reputable Bullion Buyers will NOT do

Gold has been used as money in various cultures at various times in history. However, gold is no longer used as currency but it a commodity which means an ounce of gold is equal in value to any other ounce of gold. How then do bullion dealers make money? The bullion market is very broad, in order for bullion dealers to make money from a commodity like gold they would have to be creative about how the conduct their business. 

First things first, let’s define what the term Bullion dealer means. Simply put, gold dealers buy and sell gold bullion products. This means that they are the guys you go to when you want to invest in gold by buying gold bullion bars, bullion coins and other gold products. They can be local-based businesses with or without online presence, they may set up as coin shop businesses, they may also buy and sell gold bullion to retail investors and superfunds They use different tactics to have an edge over their competitors and make money like offering the lowest premiums on the market.

In recent years, there has been a surge in the number of gold buying businesses, knowing some of the methods they use will help make you a well informed customer.

Price Gouging

Bullion dealers offer prices they know the market can bear. If a buyer is the only game in town, it may be harder for customers to get competitive prices because the buyer has no one to compete with. On the internet, things are a little bit different. Buyers have to compete by either offering the best prices, offering some added value like free shipping. The Internet offers customers a lot of alternatives. Customers can always move to another dealer. 

Offering Meltdown Values

With the rise of cash for gold businesses, many people rush to get cash quickly without doing proper research. A lot of people make the mistake of lumping their gold and selling it to dealers who mostly deal with scrap gold. When you have bullion to sell the best person to sell it is someone who deals with bullion. What scrap gold buyers and bullion dealers offer can be different.  Why should you worry about the melt value of your one-ounce gold round; it should be the same as the spot price, right? Not quiet. A bullion dealer will consider the condition of the bullion. Especially for bullion coins. The price they are bought for is never the same as what they are sold for. The shifting spot prices have something to do with it but it comes down to what the premiums are for certain types of gold. Premiums are high for rare bullion coins. It is important that when you sell gold bullion like coins, you get as much information about their collectability, rarity and therefor their premiums. If you are simply selling gold bullion bars then finding a bullion dealer offering you the closet to the spot price is all you have to check when you go to sell gold bullion.

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