If you’re an investor in precious metals, or a collector of gold and silver coins, you’re probably aware that very little new inventory is being brought to market at this time, and that most of the new offerings are being sold at premiums above what you’ve come to expect. This makes it incredibly difficult for buyers of gold and silver coins and bullion to accumulate the desired items while the price of gold and silver remains affordable. How is it that very few, if any coin dealers, have bullion coins to offer, but are somehow still able to remain in business? The secret is that while the volume of buying for most coin and bullion dealers has slowed down, they’re still conducting business, but are holding items for their most valued customers. In this article, we’ll discuss four reasons why it’s critical to establish a relationship with a local coin dealer.
Early Access to New Inventory
As alluded to above, one of the benefits in establishing a relationship with a local coin dealer is to obtain early access to new inventory. This is especially important in times like we’re currently experiencing where demand is outstripping supply. How would you like to receive a phone call or e-mail from your local coin dealer any time they receive coins and bullion that are on your wish list? This is an ideal situation for anyone that is in the accumulation phase.
Preferred Buying Rates
Coin dealers, just like any other business, appreciate their regular customers and are more apt to provide them with preferred pricing. While coin dealers are in business to make a profit, they don’t mind leaving a few dollars on the table to accommodate their regular customers. Obtaining preferred pricing or discounted rates is especially critical in times like we experienced a few months back where some coin dealers were demanding premiums in excess of 40% for silver coins!
Reputable coin dealers place a high value on privacy, and do their best to ensure that transactions with their regular customers remain discrete. This is especially important in the area of coins and bullion, as they are commonly high valued items, which could put you at risk if individuals or organizations are aware of your holdings. While conducting business online certainly has its privileges, the paper trail that it leaves could potentially be detrimental in the future. Additionally, some online companies sell your personal information to marketers for advertising purposes, which could result in receiving a good bit of unsolicited correspondence.
Preferred Selling Rates
While individuals purchase gold and silver coins and bullion for various reasons, at some point in time, there is a high likelihood that you’ll want to sell their coins. Most coin and bullion dealers pay set rates for various items, but usually offer preferred rates for their regular customers. This means that you have a lower threshold that needs to be met to realize a profit. Furthermore, if you’re able to receive preferred pricing when you initially buy gold and silver coins, you’re that much more ahead of the game.
In summary, we’ve highlighted four specific reasons why it makes sense to establish a relationship with a local coin or bullion dealer. Obtaining early access to new inventory is critical, especially when supply is limited and prices are suppressed. Obtaining preferred pricing, on the buy and sell side, means that you have less of a threshold to meet to realize a profit, and the privacy that comes with local transactions is beneficial for your safety and security. If you’ve yet to begin working on a relationship with your local dealer, there’s no better time than the present!