Choosing a Reputable Dealer
The most important step in buying gold safely is selecting a reputable dealer. Look for established businesses with verifiable track records, physical addresses, and clear contact information. Online reviews and industry accreditations can provide additional confidence.
Major online dealers include JM Bullion, APMEX, SD Bullion, and others with 1 oz gold bar inventories. Local coin shops can also be good sources. Compare prices across several dealers, but be wary of prices that seem too good to be true.
Verifying Authenticity
Reputable dealers sell only authentic products and stand behind what they sell. Bars from recognized refiners come with specific security features: serial numbers, assay cards, tamper-evident packaging, and consistent weight and dimensions.
When your bar arrives, verify the weight with a precision scale (should be 31.1035 grams). Check that serial numbers match any accompanying documentation. If anything seems off, contact the dealer immediately.
Payment and Delivery
Dealers accept various payment methods including bank wire, credit card, check, and sometimes cryptocurrency. Wire transfers often receive the lowest prices since they have lower fees and fraud risk. Credit cards may incur surcharges.
Delivery typically occurs via insured shipping from the dealer's vault. Signature confirmation is standard for precious metals shipments. Some dealers offer local pickup or direct vault storage options.
Documentation and Records
Keep all purchase documentation: invoices, receipts, assay cards, and any certificates. This paperwork establishes provenance and can be important for insurance claims, estate planning, or future sales.
Record the purchase date, price paid, and any serial numbers. This information helps track your cost basis for tax purposes and provides proof of ownership.
Red Flags to Avoid
Be cautious of unsolicited offers, pressure tactics, or claims of special insider deals. Legitimate dealers do not cold call or promise guaranteed returns. Prices dramatically below market suggest counterfeits or scams.
Avoid private sellers unless you have expertise in authentication or can have the gold tested. The risk of counterfeits increases significantly outside established dealer channels.