Gold Bullion Dealers: What to Look For
If you are in the stock market and you want to protect yourself from our inflation, currency devaluation or an impending stock market crash, one of the best things you can do is invest in gold bullion. That’s right. Precious metals have historically been one of the most preferred ways experienced investors diversify their portfolio. This is a no-brainer. After all, precious metals retain value out even when the US dollar crashes or the inflation spikes up. Moreover, in uncertain times there’s always a rush by other investors to gold, silver, platinum and other precious metals. These investments hold their value and go up while the rest of the investment landscape has absolutely collapsed. With that said, deciding to invest in gold bullion is easier said than done. You have to find the right bullion dealers. Just like in any market, there are many players that are untrustworthy. You have to choose the right dealers or you might end up in a sticky situation where your precious metal investment and gold is not as liquid as you originally thought. Keep the following qualities in mind when looking for gold bullion dealers. Make no mistake about. All gold bullion dealers are not created equal.
There are many gold bullion dealers that are highly leveraged. In layman’s terms, they are up to their necks and debt. Just like with any business, there are some that go from month to month of racking up huge amount of debts. Avoid this kind of dealers. You don’t want to be in the position where you buy and store gold bullion with a dealer who is in a tough financial position. This financial pressure might result in them going belly-up and you not being able to see your investment again. You need to deal with gold bullion dealers that are very liquid. This way you can buy and sell from them without problems. Very liquid dealers are able to close sales released cash in a very short period of time. Considering the small windows of opportunity that pop up during market depressions, high inflation periods and other situations, it is crucial to find gold bullion dealers with the liquidity that that will enable you to cash out your precious metal assets for capital you can use to take full advantage of market opportunities.
Pace Out at Market Rates
There are many gold bullion dealers that have a very oppressive bid-and-ask system. In other words, instead of following global prices of precious metals. They buy artificially low and sell at high prices. Avoid these gold bullion dealers. These are fairly easy to spot. You only need to look at their bid-and-ask prices and ask for their feeds. If things seen off, then move on to other dealers in the market. You are not forced to stick with one provider. Moreover, keep in mind that even if these price discrepancies are minor compared to the actual global market price, these small differences can add up specially if you’re dealing with a huge amount of gold bullion weight.
Ask a Reliable Inventory
Gold bullion dealers should be appraised based on their liquidity as well as their inventory. This does not necessarily mean that you will be buying from the gold bullion dealer. However, a dealer with a reliable inventory indicates that such dealer would be very liquid because it has a stock of gold bullion that it can cash out at any time. In other words, sitting on a huge pile of capital that you will need if you find yourself needing to unload your gold bullion holdings in a very short period of time. Moreover, if you need to buy lots of gold bullion to protect yourself against market uncertainty, you obviously need to work with a dealer that has a reliable and proven inventory.
Excellent Customer Service
After you’ve bought your gold bullion, your relationships with dealers don’t end there. You have to remember that precious metal investments in general are very liquid. In other words, one day you’re buying, the next day you are selling. Then the week after you’re buying again. That’s how precious metal investments work. This is why it’s crucial to pick bullion dealers that have excellent customer service. You would not want to deal with a business that operates on a churn and burn basis. Simply put, they just want to close the deal, get your money and then move onto the next customer. Those are the worst kind of gold bullion dealers. You need to find a dealer that you can establish a long-term relationship with. As you can tell from the discussion above, precious metal investment is all about quick entries and exits. There will be a lot of movement and portfolio shifting. This is especially crucial if you are dealing with uncertain economic times that come with lots of volatility. This volatility presents different investment opportunities that require a lot of speed on your part. The faster it is for you to liquidate your positions and buy new ones, the better it is for you. When you are dealing with a dealer who has an excellent customer service, you are dealing with a partner that can give you speed and mobility that you need to quickly seize and make the most out of temporary investment opportunities.
Reliable and Predictable Buying Prices
If you are dealing with gold bullion dealers that pay out of market rates, then you should be fine with these criteria. Regardless, don’t neglect this quality because there are many dealers that are very erratic when it comes to buying prices. In fact, some gold bullion dealers play smoke-and-mirrors when it comes to the prices that they would buy or sell at. You don’t have time for such games. Go with credited and ensured dealers that are easy to deal with. Not only must they be transparent but must also speak in clear terms. The clearer the transaction, the faster the sales will be and the more options you will have.
Remember, gold bullion dealers can be quite elusive and evasive. Just like with any service provider, these dealers come in all shapes, sizes and forms. It is very important to choose the same way as picking business partners. You need a business partner that can position you in such a way that you can make the most out of any market uncertainty.