How to buy gold/silver from coin dealers?

[pa33]

Hi, I've never bought gold/silver before and was just wondering what I should know before going to a coin dealer? How will I know if I'm being sold real gold/silver as opposed to something that just looks like gold (ie gold plated?).

[dannno]

Bring a scale..... and something that measures volume

[ItsTime]

Just go to a trusted dealer, shops that have been around a long time. If you dont trust them dont buy from them.

[Bruno]

Hi, I've never bought gold/silver before and was just wondering what I should know before going to a coin dealer? How will I know if I'm being sold real gold/silver as opposed to something that just looks like gold (ie gold plated?).

If you go to any reputable dealer, you can be fairly certain they are solid gold and silvere coins or bars. That's their business, and their knowledgeable customers would spot a fake and they would be arrested for fraud.

You're probably most interested in gold & silver bullion. Just ask them to see their bullion, please. They will charge a premium over the spot price. Usually around $50-100 oz. over for gold, and $2.50-$5.00 over spot for silver right now. The difference you will find in shops is their attitude towards noobs and the premium they charge.

Here are spot prices.
http://www.kitco.com/market/

Check before you go so you know what to excect. They can change by the minute, and are very volatile right now. Any purchases should be considered a 3-5 year hedge against inflation, and not an "investment" in the common sense of the word.

Lots of frequently asked questions on a coin forum.

http://www.cointalk.org/forumdisplay.php?f=26

Have fun!

[acptulsa]

Understand that your local coin dealer is there to provide numismatists with rare coins. This is his business all year, and you are his nuisance only when the economy sucks. Rarity can be rarity, as in that mint minted few that year, and it can be something special (like the last 1803 P half in pristine uncirculated condition, or a mistake that escaped inspection when it was minted). This isn't what you're after. As long as you understand this about the proprietor, you'll get along with him or her better.

U.S. coins from the dime up minted in or before 1964 have silver. Few minted in or after 1965 have any silver at all, and none are 90% silver like the old ones. I have been managing to get old U.S. silver coins at FRN 12.25-13.00 to the $1. So, a silver dollar costs up to thirteen, dimes up to 1.30 or I don't buy. Likewise, I'll gladly pay three bucks for a quarter. The alloy is identical (some variance over time, but none in a particular year's dimes, quarters, halves or dollars). The weights are proportional. Pay half as much for halves as you pay for dollars and etc.

The more you buy at once the better a price you get.

If the dealer paid too much, he or she will either offer to sell to you for too much or will leave that stock in the safe. You can't reasonably expect them to take a loss just to sell to you.

Know the spot price before you go, but don't expect to pay only that. They have bricks and mortar to maintain, electric bills to pay...

U.S. gold came in $20 double eagles, $10 eagles, $5 gold pieces and (briefly) some smaller denominations years and years ago. The smaller ones were generally deemed too easy to lose (and a dollar was a hell of a lot of money at the time). Double-check me, but I think the double eagle is an ounce, and weights are proportional to face value here as well.

That help?