A checklist before you buy gold or silver
Short answer: Before you buy, check the premium over spot, the dealer's buyback price, the weight and purity, the seller's reputation, the all-in cost and how you will record it.
Check the numbers
Compare the price with the metal's melt value to see the premium, and ask what the dealer would pay to buy the same piece back.
- Premium over spot, as a percentage
- Buyback price for the same item
- Shipping, tax and fees on top of the quote
Check the piece
Confirm the weight, fineness and dimensions against the published specification. For bars, check the markings and any sealed assay card.
Check the seller
Prefer dealers with clear policies, secure shipping and a record of fair dealing. Be wary of prices far below others, which can signal a fake or a scam.
Record it the day you buy
Write down weight, purity, price, date and source, and keep the invoice, so your cost basis stays accurate from the start.
Questions
Is a lower premium always better?+
Not always. A low premium on an unfamiliar product can be harder to resell, so compare the buyback price too.
Coins or bars?+
Bars usually carry lower premiums per gram at larger sizes. Coins are easier to recognise and sell in small amounts.
How do I avoid fakes?+
Buy from reputable dealers, check weight and size, and keep sealed packaging. See the glossary entry on counterfeit bullion.