Over the years, we've developed a great deal of experience in acquiring hard assets for investors' portfolios. We've worked with highly experienced investors and people who are making their very first hard asset purchase. We've worked with many people on an exclusive basis as well as some who work with multiple firms. Given our wide range of clients, we've developed some strong opinions on how a firm involved in the sale of precious metals and rare coins should conduct themselves. Certainly, we hope you choose Dallas Gold & Silver Exchange when it comes time to buy, sell or trade rare coins, gold, silver, platinum or palladium. But no matter who you work with, it's been our experience that you should work with a firm that meets a certain set of criteria:
It's critical that you work only with firms that have been around a long time.
Five years at a minimum...ideally ten years or more. As the price of gold, silver and numismatic coins begin to rise, new firms will come "out of the woodwork." Some will be solid, but many will not. Firms ten years old or more have been around through thick and thin. They are dedicated to the hard asset markets and are usually owned by and employ professionals who truly believe in those markets. These are the best firms with which to establish a long-term relationship.
Check for credentials and professional affiliations.
What are the professional organizations to which the firm belongs? Make sure they are members of PNG (The Professional Numismatists Guild) and ANA (American Numismatic Association.)
Always request written information about the firm. Do not buy until you have reviewed it and checked out the firm. Most of the better firms have literature you can request which will contain much of the information you need to conduct your due diligence.
Understand exactly how transactions are going to take place.
When is the price set? You should expect to take delivery of your purchase (some less reputable firms will ask that they hold on to your purchase - this is a big red flag). How long should you expect for delivery? Bullion and bullion coins should come to you within ten business days. Semi-numismatic (semi-rare coin or pre-1933 U.S. gold coin) and numismatic (rare coin) transactions may take longer. Make sure delivery times are within these industry standards. If they are not, it is yet another red flag.
Understand exactly how you might liquidate your investment.
Firms may have many "great investments," but what about when the time comes to capture any gains you make on the purchase? You should understand what means are available to liquidate any inventory you amass. Sometimes firms will make a secondary market through sales to other collectors, auctions, etc. This can be very helpful.
Understand price margins and - critically - buy/sell spreads.
Many disreputable dealers make their money by "gouging" buyers with overtly high spreads. Ask questions about the buy/sell spread when you're interviewing potential firms and check the answers by comparing their claims with what other firms tell you.
Beware of sales pitches.
If the firm calls you repeatedly with one "unbelievable deal" after another, be careful - it may well be unbelievable. If they persist in trying to sell you something in which you have no interest, this is another red flag. Resist and seek more information and other opinions. Do not make a decision until you have received sufficient information. Remember...gold, rare coins and other hard assets are a great investment. They virtually "sell themselves," so any firm that has to resort to aggressive selling tactics should be viewed with suspicion.
Check and compare pricing.
Cheaper is not always better. In fact, below market pricing should be a major concern. If a deal sounds too good to be true, it probably is.
As with most things, sometimes the best firm to deal with is the one you are referred to by a trusted friend or family member who has experience with that firm.
If you receive information from a good firm, and you like what you see and hear, go with them.
If you have the slightest doubt, especially if the firm does not sufficiently meet the criteria above, then go back to square one and start over. Naturally it's always better to be safe than sorry. Contact the experts at Dallas Gold & Silver Exchange today to learn more about Bullion and Rare Coin Investing and Collecting. 972-484-3662.