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HOW TO BUY GOLD AND SILVER | LOCAL DEALERS VS ONLINE DEALERS| Tips on Gold and Silver Coins and Bars - YouTube

Channel: MissATM

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after a week of volatility gold price

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is steadily clamping up again like i

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mentioned in my previous video

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it is not too late to invest in gold and

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in today's video i will discuss the

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process of buying gold

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where to buy them what i like and don't

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like about some of the online sellers

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what to buy and how to reduce your cost

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of buying gold

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or silver bars hello everyone

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my name is anne first off in 2020

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i am looking forward to increase my

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holding in precious metals to around

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seven percent of my total investment

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for the last couple of years i have

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invested heavily in real estate

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and maybe one day i will share my real

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estate investment journey with you

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by the way i have never flipped houses

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my real estate investment is mainly in

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newly built homes

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now let's talk about gold pricing

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there are two different prices spot

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price and retail price

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the gold spot price is the price for an

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ounce of gold

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that is deliverable right now however

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the spot price does not take into

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account of the markup

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by the dealer or distributor or markups

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the minting or manufacturing company

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the retail price is what you pay at the

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online or

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traditional store which includes the

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dealer's markup

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generally the market for gold varies

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between three

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to five percent while silver has much

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higher markup

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at between 10 to as high as 25

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that is on top of the spot price the

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markup or premium is the cost of making

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the bar or minting the coin

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say keeping it and getting that to you

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during the process the people in the

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middle add the fees into the price

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and as an end buyer you pay for all of

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that cost

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it is important to know that if you buy

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coins

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in either gold or silver you will pay

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higher premium because it is

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more labor intensive to make a coin

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rather than a bar

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so the larger the bar you buy the less

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premium

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you will have to pay also i want to

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mention that

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some people may tell you that it is much

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harder to liquidate a large

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board of gold such as a kilogram bar

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i don't think that is true i have talked

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to both online and local dealers to

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confirm this

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they would be happy taking as many gold

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bars

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as you have therefore you should

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consider to buy the largest unit of gold

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you can afford

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to get the most for your investment for

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example

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buy 10 ounce bar instead of one ounce or

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one ounce gold coin instead of one

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10 ounce coin you get the idea there is

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also one more important thing that you

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need to take into consideration

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when investing in precious metals is

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that when you sell them

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you will not get the retail price for

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your goal but instead

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the dealers will offer you a price to

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purchase your precious metals

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and it tends to be anywhere from

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4 to 10 less than the retail price

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it is likely that you will get the spot

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price

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when you sell your gold or silver bars

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okay

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so you know the cost of buying and

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selling gold now

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where can you buy gold you can buy gold

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from online or local dealers

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the main difference i found is that

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local dealers seem

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to prefer cash for your purchase while

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online dealers

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want you to pay by bank wire or even

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bitcoins

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so what are the pros and cons of buying

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locally versus online

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for local dealers i think one of the

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best things about dealing with your

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local dealers is that you can get paid

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extremely fast

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simply brings your coins or bars to the

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dealers you will get paid in cash right

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away

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also you can ask yourself person many

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questions

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and get the answers right away another

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less

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known benefit of buying locally is that

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you can negotiate price

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if you buy large quantity and buy often

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you can do the same to the online

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websites but your rate of success

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is much less however try to negotiate

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the premium

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in the next time you buy it never hurt

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to ask pricing wise the local dealers

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prices tend to be

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on the higher side in comparison to the

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online prices

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typically at around 0.25 percent to

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0.5 percent higher however they tend to

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buy back

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a decent price sometimes you can get

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more money

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selling to your local dealers than

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online dealers

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another con is that local dealers don't

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have large selection of products

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like online dealers do and if you need

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something particular

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it will take a while for your local

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dealers to acquire them

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and lastly i think you may expose to a

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risk of people knowing that

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you buy precious metals when you walk

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inside

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a gold dealer your face is on camera

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and as the same time if you buy precious

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metals often

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some people working at the store or

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working next to the store

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may recognize your face therefore please

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proceed buying precious metals in

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physical store

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with caution buying online has some

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advantages

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generally you will get better pricing

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and more variety of choices

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there are also some great sales

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especially on

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providence metal site sometimes they

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offer great sales

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you can also compare prices on all of

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these websites

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size by size but buying or selling

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online

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takes longer since you will need to wait

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for the delivery of

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gold from the dealer to you or from you

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to the dealer if you selling them

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the biggest con is that when you need to

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liquidate your coins or bars

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it will take a while first you will need

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to call or submit your bars for a quote

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then once you agree with the price and

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you will be sent a label to send your

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coins or bars to the online dealers

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then there is a waiting time for about a

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week for you

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to get paid so if you run into a

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situation where you need

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cash right away selling your coins

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online

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may not be suitable by the way you don't

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have to sell your gold back to the same

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dealer you bought it from

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you can sell to the most reputable

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online dealers by simply call

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or submit a quote for your medals and go

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from there also

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this may or may not matter to you but it

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is worth to mention that

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the customer service experience with

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online dealers

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may not be as satisfying as the local

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dealers

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since the sale person is behind the

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phone

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and not under pressure to perform plus

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the phone waiting time for online store

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is typically

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longer than that at the local store

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so where do you start for local dealers

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a simple look up on google and you will

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get a list of names

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contact information along with their

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respective ratings

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now let's take a look at my top three

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favorite online dealers to buy gold

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they are jm bullion ap max and

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providence medals by the way if you go

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