Online Gold Purchase? Read This First!

| May 19, 2015 | 0 Comments

Buy Gold OnlineThings To Look For In An Online Gold Purchase

Shopping online is all the rage these days.  It makes sense because the convenience is undeniable.  No running around town, no fighting crowds, no road rage. Your purchases are sent to your front door, hassle free.  I love it.

But when it comes to an online gold purchase, which is an important investment decision, can you really trust the process?

Today we’re taking a closer look purchasing gold and silver online.  As you may have guessed, there are some very important factors to be mindful of.

Let’s get to it…

Online Gold Purchase Made Easy…

Before we get started, let me remind you of something.

When it comes to gold and silver investing, you have many options at your disposal.  We covered nearly all of the best ones here.

But as I’ve suggested before, purchasing physical precious metals and holding them in a secure but easily accessible location is by far the best option.  There’s something reassuring about feeling the weight of your investment in your own hands.

Here’s the thing…

If you can get gold and silver to your front door with the convenience of online shopping, why not do so?

Fact is, I’m all for it.

Of course, there are a few very important things to keep in mind when making an online gold purchase.

Here they are:

Unless you’re an expert, stick to the basics–  As I’ve mentioned before, there are different kinds of gold and silver coins.  Some are valued for the amount of precious metals they hold (bullion investing), while others are priced for their historical significance (numismatic investing).

If you’re unfamiliar with numismatic coin investing, stay away from it.  There’s an exceptional amount of specialized knowledge needed to make these investments successfully.

That leaves bullion investing…

When precious metal shopping online, I suggest you search for government issued coins only.  Remember, there’s a difference between a round and a coin.  Although they may look the same, a round is made by a private mint while coins are produced by government mints.

Although the premium is a bit higher for government-minted coins, their weight and purity is guaranteed.  Not so with rounds.

What’s more, steer clear of special edition sets and commemorative coins.  There’s typically an additional (and unnecessary) premium you’ll pay for these products.

Bottom line…

When it comes to purchasing gold and silver online, and anywhere else for that matter, you’re goal is to acquire the metal as close to the daily spot price as you can.

Speaking of which…

Calculate the premium you’re paying–  This may seem obvious, but many tend to skip this important step.

First, check the daily price of gold and silver through an independent website.  I prefer this one.

Secondly, search various online dealers and compare the premium they require for identical products.   For example, I compared the prices for 2015 American Silver Eagles across multiple online dealers and found drastically different prices.  Some were a good deal while others were questionably high.

And keep in mind, government minted coins always carry a higher premium than privately minted rounds.

Be wary of pooled accounts–  If anyone tries to convince you pooled gold and silver accounts are the way to go, run the other way.  In my opinion, the risks of pooled accounts far outweigh the potential cost advantages associated with them.

What is the biggest risk of a pooled account?

When you buy into a gold or silver pool, the precious metals you (supposedly) own are grouped in with everybody else in the same program.  In other words, the metals you paid for aren’t sitting in a special box with your name on it.

And here’s the worst part…

If you’re in a pooled account, you don’t legally own the gold and silver you’ve purchased.

Instead, you become a creditor of the bullion bank that’s “storing” your metals for you.  And if that bank gets in trouble (yes, it happens), it can sell your gold in order to ensure its own survival.

Require signature for delivery–  One thing I hear of time and again when it comes to online shopping is a lost delivery.  The store says the package was delivered, but you can’t find it.

Maybe the delivery driver made a mistake.  Or possibly you’re package was stolen by a thief trailing the delivery truck, which is common these days.

Of course, when it comes to a large online precious metals purchase, this scenario is a nightmare.

But it’s completely avoidable…

When completing your online gold purchase, require a signature for delivery.  If no one in your household is there to sign for it upon delivery, the shipping company will try again another day.

Online Gold Purchases:  A Great Alternative To Local Coin Shops

All things considered, purchasing gold and silver online is just as effective as driving to a local coin dealer.  Just make sure you follow the basic pointers above to help keep you out of trouble.

If you ever become unsure about an online gold purchase, just remember this old adage…

If the deal sounds too good to be true, it probably is.

Until Next Time,

Justin Bennett

BIO:  Justin Bennett is the head commodity research analyst at  With over a decade of real world trading experience, he finds ways for you to consistently profit from movements in commodities and the companies producing them.  Sign up for our free reports and commodity newsletter at

Tags: , , ,

Category: Precious Metals

About the Author ()

Justin Bennett is the editor of Commodity ETF Alert, an investment advisory focused on profiting from the ebb and flow of important commodities via ETFs. The commodity veteran and options specialist is also a regular contributor to the Dynamic Wealth Report. Every week, Justin shares his thoughts with our readers on a variety of commodity-related topics. Justin is also a frequent contributor to Commodity Trading Research’s free daily e-letter. And he’s the editor of another highly successful and popular investment advisory, the Options Profit Pipeline.