How to Choose Properly your Bullion Dealer?

There are many factors to consider and questions to ask in order to find a trusted and reputable bullion dealer:

1. What is the premium applied by the gold bullion dealer to sell and buyback the physical precious metals?

The premium is the margin applied by the bullion broker above the spot price to sell gold, silver or platinum bars. This premium can vary from 1 to 30%. This means that the broker makes to 1 to 30% gross margin depending on the brands and the type of the bullion.

2. What is the Cost of Storage for Gold, Silver or Platinum Bars?

The cost of storage is a percentage of the value of the bar instead of a fixed cost because it includes the insurance, and the insurance is necessarily a percentage of the value insured.

Generally, the range of storage fees is between 0.20% and 1%.

3. Are Bullions Tax Free?

In most countries, gold maintains a special position on the market for investment precious metals and is not subject to VAT. For example, in the European Union, Singapore or Hong Kong, trade in gold coins and investment gold products is exempt from VAT. On the other hand, silver and other precious metals such as platinum can be taxed. U.S. citizens may be taxed on their profits on gold or capital gains, depending on the investment used.

4. Is the Vault of the Dealer Part of the Chain of Integrity? And Are the Bullions Fully Insured ?

The integrity chain is essential in the gold market because it ensures the purity of gold, silver and platinum ingots. This chain is regulated by the LBMA (London Bullion Market Association) which is the international association that controls the gold and silver market. The LBMA provides the official list of refiners, shipping and vault companies that respect the integrity chain.

When buying or selling ingots through members of the LBMA integrity chain, the value of the investment will be approved with no need to test the bar or recertify it.

If the gold leaves this chain of integrity by going to an uncertified member, the chain has been broken. The only way back to the integrity chain is for a certified refinery to re-assay the bar and put it back into the system.

As long as gold remains in the LBMA integrity chain, it can easily be sold and liquidated for a cash position without losing value. Once the ingot leaves the chain, selling the position can become difficult.

Usually, the bars are fully insured when they are stored in the vaults of LBMA members companies.

5. Are the Prices Real-Time International Market Based?

Most of the precious metal dealers don’t offer a real time market price. They generally refresh their price every minute or more.

While the price of gold, silver and platinum is based on the international spot price which is updated every millisecond.

The slower the price is refreshed, the higher the additional margin is applied by the gold seller.

Thanks to "Bullion Dealer Comparator", you will be able to answer to these main questions and finally to find the best bullion dealer online!