Key Considerations in Choosing a Gold Investment Company

gold bars and cashBuying gold may not be as easy as you think. Unfortunately, with transactions as complicated as Gold IRA investments, crooked gold dealers are out there to make quick cash from your hard-earned money. If you’re looking to find the most reliable gold investment company, you should know how to pick one. Read “Goldco IRA Reviewed” by Networthdirect, you may want to learn more about it. So, what are the key considerations in choosing a gold investment company? Below are some important pointers!

1. Good Company Standing and Experience

You should make it a good practice to only work with companies that have been in the industry for at least 5 years – even better if they have been in the trade for longer! Because Gold prices are steadily increasing over the years, more and more enterprises are sprouting here and there. The scary thing is some of these starter businesses are merely home-based with very minimal experience in gold dealing. And don’t fall for the sweet words of new firms appealing to be more reputable than those we’ve seen for decades. Although some can back up their words, most of them will likely be mediocre. 

Investment companies that have been in the trade for more than 10 years likely have the most experience in dealing with precious metals. But, the best gauge of their performance is what their clients say about them. Reading customer reviews can help you get an idea of their service quality. While doing your research, make sure to check for the following criteria: 

🗹 Safety and Security 

The hard truth is there’s always a high risk involved when it comes to dealing with gold investment. It may be hard to swallow, but some are in business just to dupe their customers!

Gold coin scams have been a prevalent business of fraudsters for decades. They milk beginner investors by offering “affordable” physical gold investments only to receive nothing in return. 

🗹 Diverse Options

a heap of gold and silver coins

Your investment company should be able to provide you with a range of gold products to choose from. Some stores offer specialized services, so your options may be limited. For instance, you may find one that specializes in IRA-approved gold coins or bullions, some only offer collector coins, while other companies focus on a specific size (e.g. 1 oz coins, 2 oz coins, etc.). You should look for one that has the specific type of coins or bullion you want to invest in. 

2. Fees and Prices

When it comes to gold investing, it’s best to gauge a company’s credibility by determining which offers the most reasonable pricing. Scammers often offer too good to be true prices to hook clients in, so beware!

Beginner investors would normally go for the lowest-priced company, but you should not. What is most vital is whether you can take physical possession of your investments. 

First, make a list of prospect companies by reading online reviews and customer feedback. Then, check their web pages or contact a representative to get a list of their fees and prices. See if they are reasonable enough for a specific purchase volume. 

Of course, you should also research the latest market prices for metals, so you will know which is within a reasonable range and not fall for fraudsters and scammers. 

3. Location and Delivery

Another key consideration is whether you’d want to work with a local or online dealer. 

🗹 Local Gold Broker

A lot of buyers still prefer local shops as they offer security, comfort, and direct interaction with the dealer. If you’re looking to buy only small quantities of bullion and want to pay in cash, your local dealer may not have to report it to the IRS so your transactions can remain private. 

Another benefit of working with a local broker is you can physically inspect the commodity and bring it with you right after paying. Naturally, you’ll have to pay a higher price for gold bullions, but the great thing is you get to save from shopping and delivery fees. 

Because local dealers recognize the nature of their business, they tend to invest in their reputation to keep their credibility in the community they serve. You’ll find the quality of service they show is on another level than average online stores. 

But, because they pay more overhead costs (e.g. human resources and utilities), they usually charge higher prices for their bullions. 

🗹 Online Gold Broker

Online brokers are booming nowadays since they tend to offer lower prices than the average local shop. Online companies won’t have to pay for what traditional establishments do to keep the business running. Plus, online brokers have national – or even international reach. They also sell at higher volumes and enjoy lower fixed costs. With this, their clients can enjoy lower prices as well since they get to have lesser considerations in determining product prices.

The downside is that you won’t have direct interaction, so you may not be as confident working with one as walking right into your local shop. Gold is an expensive commodity and it’s only right for you to be wary, especially if you buy it from a representative you won’t meet in person. This is one of the reasons why local dealers still thrive, even with the advancement in technology – they offer more comfort and security to clients. 

Just remember, whether you work with a local or online dealer, they each have their advantages and disadvantages. It’s for you to judge!

The Bottom Line

We’ve shared everything you need to consider when choosing a gold investment company. Reputation and experience are of primary importance since you need to know the company’s credibility to avoid scammers and fraudsters. You should also make sure the company you work with has a variety of products available and offers reasonable fees instead of too good to be true pricing. By considering these factors, you can be confident that your chosen company is one that you can rely on. 

Don’t invest money you can’t afford to lose! Make sure to do your research well before making your final choice.