Essential Questions to Ask a Gold Dealer Before Making a Purchase

Essential Questions to Ask a Gold Dealer Before Making a Purchase

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In a world marked by fluctuating economies and uncertain financial landscapes, the allure of gold remains steadfast as a symbol of stability and enduring value. Whether you’re a seasoned investor looking to diversify your portfolio or a curious newcomer seeking to embark on a journey of wealth preservation, the prospect of purchasing gold holds a magnetic charm. Yet, as with any significant financial decision, it’s paramount to tread this path with wisdom and discernment.


Enter the gold dealer—a trusted intermediary between you and the precious metal that has captivated human fascination for centuries. As you stand at the crossroads of this pivotal decision, armed to acquire gold, an array of questions must be asked.


Beyond the glimmer and allure, purchasing gold is a multifaceted endeavor that demands knowledge and prudence. The questions we’ll explore illuminate the path to clarity, guiding you through the maze of terminologies, pricing structures, authenticity concerns, and practical considerations that underpin the gold market. With each question posed and answered, you’ll gain insights into the mechanics of gold acquisition and fortify your position as a discerning investor who understands the value of due diligence.


From uncovering the purity of the gold to delving into the intricacies of pricing and the dealer’s reputation, this article serves as your compass in gold transactions. It equips you with the tools necessary to confidently navigate the gold market, ensuring that your investment journey is marked by informed decisions, secure transactions, and a firm grasp of the precious metal’s profound significance.

What is the Purity of the Gold?

Understanding the purity of the gold is paramount. Ask the dealer about the gold’s fineness, typically expressed in karats or a decimal figure. Pure gold is 24 karats, while other alloys may have lower purity levels.

Is the Gold Bullion or Numismatic?


Distinguish between gold bullion and numismatic coins. Bullion coins are valued primarily for their precious metal content, while numismatic coins carry additional value due to their rarity and historical significance. Clarify the type of gold you’re purchasing.

What is the Current Spot Price?

The spot price is the current market value of gold per ounce. Dealers’ prices may be based on this spot price. Knowing the current value helps you gauge whether the offered price is fair.

Are There Any Additional Fees?

When venturing into the world of gold acquisition, the allure of owning a tangible asset of enduring value often takes center stage. Yet, as with any financial transaction, examining the fine print and considering the complete picture is essential. Among the key questions to ask when engaging with a gold dealer is the inquiry that often lies beneath the surface: “Are there any additional fees?”

The answer to this seemingly innocuous question could significantly impact the overall cost of your gold purchase. While the sticker price might initially catch your attention, the hidden costs and ancillary charges can silently erode your investment’s value. In this segment, we delve into the importance of uncovering additional fees, how they can affect your bottom line and the strategic advantage of being aware of these potential expenses.

Can You Provide References or Reviews?

Request references from previous customers or inquire about online reviews. Positive feedback and recommendations can lend credibility to the dealer’s reputation.

What is the Buyback Policy?

Understand the dealer’s buyback policy. Reputable dealers often have fair buyback policies, allowing you to sell back your gold at a reasonable rate should you choose to do so.

Are Your Prices Competitive?

While the cheapest option may not always be the best, comparing prices among different dealers ensures you’re not overpaying for your gold.

Is the Gold Certified/Authenticated?

Certification and authentication assure that the gold is genuine and accurately represented. Ask about any certifications or guarantees that come with the purchase.

Can I Inspect the Gold Before Purchase?

Visit the dealer or ask for detailed images of the gold you intend to purchase. This helps verify its condition and authenticity.

What Payment Methods Do You Accept?

Different dealers accept varying payment methods. Confirm the acceptable payment methods to ensure a smooth transaction.

How Do You Store and Ship Gold?

Inquire about the dealer’s storage and shipping practices. Secure packaging and insurance during transit are crucial to safeguarding your investment.

What Privacy Measures Do You Have?

If privacy is a concern, ask about the dealer’s privacy policies regarding customer information and transaction details.

How Long Have You Been in Business?

Experience often indicates a dealer’s reliability. Inquire about their years of operation and their standing in the industry.

Do You Offer Customer Support?

Prompt and responsive customer support is essential. Ensure the dealer can address any queries or concerns after the purchase.

Are You Accredited or Associated with Any Organizations?

Dealers associated with reputable industry organizations adhere to certain standards. Inquire about any affiliations or accreditations they possess.

What is the Most Popular Product You Sell?

This is the most important question you can ask your gold dealer, and here is why? There is a popular saying that goes, “SUCCESS LEAVES CLUES.” So there is a reason for those top sellers being top sellers. That reason is liquidity. Gold and silver are very liquid items, making the popular ones even more nice. 


The company that sells them to you is more likely to buy back those popular pieces from you when you are ready to resell them. 


Purchasing gold is a significant financial decision, and posing these questions to a potential gold dealer empowers you to make an informed choice. By gaining clarity on the gold’s purity, pricing, policies, and authenticity, you’re positioning yourself for a secure and confident investment. Remember that a reliable gold dealer will be willing and able to provide transparent and satisfactory answers to all your queries.

So you have decided to buy silver online.

Great choice. Let’s talk about silver.

Silver is exceptionally popular today. Part of the reason for this is the belief that it’s potential for upside value increase is even greater than the same belief in gold. In fact, there is a very good book on this subject entitled: “ Why Silver Will Outperform Gold by 400% in the coming years”. It’s a very scholarly book and quite convincing. Give it a read if you have the time.

Silver Bullion Prices

Mind you, one need not look as far as that book to find evidence of the common belief that silver has great potential for growth in the near future. All one has to do is go to the web or even Youtube and there are advocates of this thought at every turn.

At Durham Precious Metals we believe that silver is an easy choice because it gives a sense of substance due to its lower cost per ounce than gold.

Silver Bullion

Probably 90% of our business is silver sales so this sentiment is fairly unanimous throughout the public. 10oz bars seem to be the most popular. Generic rounds and Silver Maples seem to be the next most popular and 1oz bars a close 4th place. It is our opinion that 10 oz bars and 1oz rounds are your best value as their premium over spot is very reasonable. However, there is no wrong choice when it comes to our silver product line because we try to concentrate on product lines with low premiums anyway.

Silver has always been a form of money. There are those that will argue that silver has been demonetized but we beg to differ. All one has to do is refer to the (CCRA) definition for 999 bullion. It is deemed by Rev Can to be a “ financial instrument”. Enough said on that subject!

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From a utility standpoint, silver has somewhere in the neighbourhood of 60,000 industrial uses including painting the backs of mirrors to create the reflective surface to collecting radiation in solar panels. If nothing else, the lack of an above ground supply of silver ( which is relatively new historically) will keep the demand for this metal strong since for most applications there is no viable substitute.

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Can you imagine the mayhem that would ensue if all the major electronic manufacturers came grinding to a halt due to a silver shortage? It would be catastrophic to the economy. We believe that this fact alone will be a major driver of support for the silver price when the powers that be run out of tricks in their attempt to suppress the price of silver. And yes, we agree that this practice goes on in plain sight and that the regulators turn a blind eye. Let’s hope justice prevails and that the historic silver/gold ratio returns to its traditional level.

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In the meantime…keep stacking!

So you have decided to buy gold online.

Great choice! Let’s talk about gold then, shall we?

Gold is, and always has been, a favorite of collectors of precious metals. Its 6000-year history of sustaining wealth is unprecedented. The yellow metal has launched wars, bought fortunes and has been a form of money throughout that history. It is one of the densest metals and also one of the densest elements on the periodic table. It weighs in at a density of 19.32 grams per cubic centimeter. Water, by contrast, has a density of 1 gram per cubic centimeter.

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Platinum is the densest of the common 4 precious metals at 21.45 grams per cubic centimeter.

People will often ask when gold is the right choice to buy as opposed to other metals such as silver. This is a very common question. There is no easy answer that anyone can give to someone so we always boil it down to practical applications.

Gold Bullion

Consider how much of an investment you are planning to make over-all throughout the course of your precious metals buying.  If you are planning on purchasing, for example, $10,000 worth of metals and then cap your spending then it really doesn’t matter which metals you buy. The volume of the purchase will be relatively small in terms of weight and size. Our main concern and Durham Precious Metals comes down to simple things like , cost of storage, cost of shipping and bulk. We are always trying to help our customers have the best experience as metals collectors.

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For example, if you were to tell us that you are considering selling a piece of real estate and use the proceeds to buy metals then gold would be our suggestion. The reason comes down to volume and weight at this point. Several hundred thousand dollars of silver would be an incredible amount of bulk at this spend level. Hundreds of pounds of silver would be hard to store practically and would be more expensive to store as well. If you are the DIY type it would also be harder to hide than a comparable dollar amount of gold.

Keep in mind that at the time of this writing gold is about 75 times more expensive in dollar terms as the same weight of silver. That equates to 75 times less bulk per dollar spend. This will make it much easier to hide or store if you are looking at large purchase amounts.

Price of Gold?

If you are only considering a small total purchase amount either of the metals is perfectly fine. The one consideration we always emphasize for small purchase amounts really comes down to personal perception. Here is what we mean. Silver is 75 times more bulky per dollar spend. Obviously, it is going to feel a lot more substantial if you buy $5000 worth of silver and have several hundred ounces to admire than only about 3 ounces. It’s a perception thing at this point but perception matters to people since perception can make us feel a particular way about what we spend our money on.

In closing, gold and silver are both great choices and neither is wrong in terms of their value of utility. They have both had a long history as a store of wealth and that isn’t likely to change any time soon.

Buy both with confidence. Buy Gold Online

We often carry pieces that we don’t list on site so feel free to call us for an up-to-date list.

About DPM

When you consider silver value and gold value, the wise choice is to stock up today. At Durham Precious Metals we make it easy and convenient to buy silver and buy gold online.

For those who are serious about investing in gold and silver bullion, DPM is your one-stop store to buy gold and buy silver, whether it be through our website or our retail store.

Many people want to know where to buy gold and do not realize they can avoid the traffic hassle of driving into the city and visit us at DPM located in Oshawa, Ontario. See our Retail Store page for directions. Our customers are delighted with our competitive silver price. We carry mint direct silver bars, silver coins, gold bars and gold coins.

Make Durham Precious Metals your choice for gold and silver bullion.

Consider a Gold IRA as well