Questions to ask a local dealer

[asolarsilver]

Hi,

I have made my purchases on-line so far thru APMEX. However, I see a lot of posts hear saying it is a good idea to create a relationship with a local dealer. Well, how do you know if the local guy is reputable? What questions should you ask? Is length of time in the business important? And, is there any kind of ratio of local vs. on-line purchasin? APMEX is $1.09 over spot right now for 10 oz bars. Tulving is about .69, depending on which bars you buy. To me, the past experiences with APMEX tip me in their favor as I am not buying in large enough quantities that I can see a big difference in price..maybe $40 total. But, a local guy might like the business and I actually prefer buying local vs. on-line. So, what do you think? If I interview 2 - 3 dealers tomorrow what should I ask and look for?

Thanks.

[Quixote2]

What is his spread, what does he buy back for? My coin dealer has his spread posted in one of the counters.

[gunDriller]

Hi,

I have made my purchases on-line so far thru APMEX. However, I see a lot of posts hear saying it is a good idea to create a relationship with a local dealer. Well, how do you know if the local guy is reputable?


you have to do business with them over a period of time, on both sides of the transaction, buy & sell.

[1970 silver art]

I agree with this Gundriller on this because the longer you do business with a local dealer, the greater the chance that you will get a better deal when you buy and/or sell at that particular dealer.

I have bought most of my silver art bars at local dealers and they have treated me very well in terms on service and low premiums. I prefer buying locally with a local dealer because I can get silver art bars for a much lower premium over spot as opposed to buying them on ebay.

Asolarsilver, what you can do is to go to each of the local dealers in your area and just check it out. Be observant. Check out what type of gold and silver they have displayed. Observe where the dealer is located. You do not have to buy anything on your first trip but if you see, for example, some 1-oz .999 generic silver rounds displayed, then you can ask how much the silver rounds cost. That will give you an idea of how much of a premium over spot that a dealer charges if you know what the gold and silver spot prices are for that day. If there is not much inventory of silver or gold on display when you go to a particular local dealer the first time, then make another trip to that same dealer to see if they restocked their inventory . If there is a local dealer that you like, then make another trip there.

Also be aware that if that local dealer is located in a state that has a sales tax, then that sales tax will factor in what you will pay for gold and silver bars and coins. If you live close enough to a neighboring state that does not have a sales tax, then you can also check out local dealers in that state.

[solid]

Lot's of good advise here in this thread.

I'd like to add, try and go at a time when it is slow and just make conversation with the folks in the coin shop. You can tell a lot about a dealer just by how they treat you. I've visited several coin shops in my area. Some coin dealers assume you know nothing and can be arrogant. Those are the shops to avoid, imo.

I have one local guy I tend to buy/sell from. It's important to establish a good relationship. This shop is family run, very friendly people, and tend to have a good fair spread. They don't adjust it or hassle, the spread is what it is.

Also, it's good to sell on occasion too. That's where you really gain trust in a coin shop. I had to sell a couple of krugs awhile back because of some unexpected expenses, it took less than 5 minutes. My local guy gave me spot for them (a couple dollars less actually), but a couple dollars less than spot is close enough.

It gives you a great peace of mind to know, and experience, just how liquid gold and silver are. Initially I was worried that dealers would try to low ball me, but that is not the case. A krug is worth an ounce of gold, at that current price.

[Cobalt]

I agree with this Gundriller on this because the longer you do business with a local dealer, the greater the chance that you will get a better deal when you buy and/or sell at that particular dealer.

I have bought most of my silver art bars at local dealers and they have treated me very well in terms on service and low premiums. I prefer buying locally with a local dealer because I can get silver art bars for a much lower premium over spot as opposed to buying them on ebay.

Asolarsilver, what you can do is to go to each of the local dealers in your area and just check it out. Be observant. Check out what type of gold and silver they have displayed. Observe where the dealer is located. You do not have to buy anything on your first trip but if you see, for example, some 1-oz .999 generic silver rounds displayed, then you can ask how much the silver rounds cost. That will give you an idea of how much of a premium over spot that a dealer charges if you know what the gold and silver spot prices are for that day. If there is not much inventory of silver or gold on display when you go to a particular local dealer the first time, then make another trip to that same dealer to see if they restocked their inventory . If there is a local dealer that you like, then make another trip there.

Also be aware that if that local dealer is located in a state that has a sales tax, then that sales tax will factor in what you will pay for gold and silver bars and coins. If you live close enough to a neighboring state that does not have a sales tax, then you can also check out local dealers in that state.




Here in Washington state, gold, silver and other precious metals sold as coins or bars are exempt of sales tax.
How long that exemption will last is anybody's guess since they proposed doing away with it during the last round of state budgets but the coin shop dealers managed to get it tabled for now.

[DMac]

I've passed by quite a few dealers over these past years. The ones I have the best relationship with I have both bought and sold. It helps to be a regular face as well, so if someone sells your local dealer an item you would be interested in, he can call you to pick up a given item. Believe it or not, some of the best deals have come from dealer X calling and saying "Hey DMac, I got some of XXX today, want to stop by later to pick them up? I'll hold them for you.."

I stopped buying from APMEX about 2 years ago.

[1970 silver art]

I agree with this Gundriller on this because the longer you do business with a local dealer, the greater the chance that you will get a better deal when you buy and/or sell at that particular dealer.

I have bought most of my silver art bars at local dealers and they have treated me very well in terms on service and low premiums. I prefer buying locally with a local dealer because I can get silver art bars for a much lower premium over spot as opposed to buying them on ebay.

Asolarsilver, what you can do is to go to each of the local dealers in your area and just check it out. Be observant. Check out what type of gold and silver they have displayed. Observe where the dealer is located. You do not have to buy anything on your first trip but if you see, for example, some 1-oz .999 generic silver rounds displayed, then you can ask how much the silver rounds cost. That will give you an idea of how much of a premium over spot that a dealer charges if you know what the gold and silver spot prices are for that day. If there is not much inventory of silver or gold on display when you go to a particular local dealer the first time, then make another trip to that same dealer to see if they restocked their inventory . If there is a local dealer that you like, then make another trip there.

Also be aware that if that local dealer is located in a state that has a sales tax, then that sales tax will factor in what you will pay for gold and silver bars and coins. If you live close enough to a neighboring state that does not have a sales tax, then you can also check out local dealers in that state.




Here in Washington state, gold, silver and other precious metals sold as coins or bars are exempt of sales tax.
How long that exemption will last is anybody's guess since they proposed doing away with it during the last round of state budgets but the coin shop dealers managed to get it tabled for now.


Here in my local area of Tennessee, there is a total sales tax of 9.25% (state sales tax + county sales tax) on bullion, however, Georgia does not have a sales tax on bullion. I live close enough to the Georgia state line and I make the short drive into North Georgia to check out those dealers to see what silver art bars they have available. Even though Tennessee has a sales tax on bullion, I do not get charged a sales tax when I purchase bullion at a Tennessee coin show.

[milehi]

In California, there's sales tax on any transaction under $1500.00. My dealer will let the regulars put stuff on layaway to get over the tax ceiling.

[kregener]

Question #1:

Is my purchase anonymous?

All further dealings are based on the answer to that one.

[Twisted Titan]

Anybody tries to put a papertrail on me does not get my business

Anybody that tries to tax me does not get my business ( do you REALLY believe the state is going to get that money at the end of the year?

Barring those two...... I really dont harp to hard on what the spot price is because I have VERY strong hands

The spread you pay today will be peanuts soon enough.

Did you see how fast Silver did a 74% increase in less then 12 months.

How you gonna feel about the spot price today when the next 74% comes???

The most important things going forward will be PRIVACY and SPEED OF TRANSACTIONS.

All else is second fiddle


T