Bullion Investing 2024: What You Need to Know
The Precious Metals marketplace has gained tremendous popularity since the pandemic. Higher inflation, interest rates, and volatility have dramatically changed the economy, leaving tens of millions of Americans filled with anxiety, doubt, and concern. Furthermore, government spending policies have left the American working class with low confidence in leadership and their ability to govern effectively.
Not all Precious Metals and Bullion Companies are created equal. You generally have the traditional call centers, internet-based, and brick-and-mortar shops. You also have big box wholesale/retail stores that have entered the marketplace, like Costco for example. There are also thousands of hobbyists and aficionados who make a living at coin shows and online through websites like eBay. Member-based wholesale companies that sell wholesale with an annual membership fee are new to the space.
As you can see, the average consumer has a myriad of options regarding precious metals and bullion. Allow us to break it all down and, hopefully, help you better understand which options best fit your strategy.
Traditional Call Center:
These companies consist of telemarketers who field call-ins and make outbound calls to prospective new clients and customers. The level of training and expertise varies from company to company, as does the type of customer service you will receive. A traditional call center has a great deal of overhead, including its payroll, office facility, marketing, and advertising. These companies often rely on a heavy mix of mailers, radio, and television advertising.
Pros: Personal service
Cons: High premiums
Internet Based:
The advent of the Internet changed the Precious Metals and bullion marketplace and immediately took a commanding chunk of the market share. Web-based companies efficiently allow investors to educate themselves at their leisure and, most importantly, search for the exact products and prices they desire. These companies generally have state-of-the-art technology and software that, in short, replaces the human being. Because web-based companies do not require a great deal of personnel and office space, a larger chunk of their operating budget can be spent on marketing and advertising.
Pros: Convenience
Cons: Mediocre customer service
Coin Shops:
Every state has a coin shop somewhere. It is generally hit-and-miss as far as what you might find. Many times, you will find “like” numismatic products, sets, etc. Some shops, however, may have a robust collection of gold and silver coins and bars. We always recommend you do your research before traveling to a coin shop. In particular, get a feel for the neighborhood it’s in. You may also want to see what kind of reviews the establishment has. Buyers should be aware that we generally see higher premiums at coin shops.
Pros: Face-to-face transactions
Cons: Secondary products, huge mark-ups
Big Box Retail
By now, you are well aware that you can go to stores like Walmart and Costco and buy brand new, freshly minted investment-grade gold coins and bars. While Walmart partners with APMEX, a large online retailer, Costco has an exclusive agreement with a wholesaler, and it’s rumored they cannot keep up with the demand. Costco, for example, understands there is unprecedented demand for gold bars in particular and uses the products to boost its membership sales.
Pros: Mint direct products
Cons: limited purchase
Coin Shows & eBay:
If you are interested in collecting coins, sets, or stacking, coin shows, and eBay are interesting options. Not only are coin shows full of hobbyists, collectors, and aficionados, but you may also meet serious collectors and numismatists who deeply understand collector coins and other rare items that are simply hard to find. If you are looking to protect your assets with precious metals, coin shows are probably not what you are looking for.
Pros: Perfect for the collector
Cons: Better options for the bullion investor
Member – Based Wholesale Companies:
It is now possible to buy precious metals and bullion products at wholesale. There is one company in the marketplace where you can buy unlimited amounts of top-tier metals at dealer’s cost. This company advocates for the customer and provides inside information about the industry every bullion investor should know about before making the decision to buy. You can buy a membership specific to your needs for a low annual fee. For more information about buying America’s most popular bullion products at wholesale, go to PrivateBullion.com/join
Pros: Knowledge, advocacy, wholesale pricing
Cons: Membership Fee
Bullion Investing 2024: What You Need to Know
