Customers who buy and sell gold or silver bullion from online dealers in order to save a few bucks should be very, very careful!
Because it’s happened again.
On April 1st, one of the country’s largest metal dealers, Northwest Territorial Mint, filed for Chapter 11 bankruptcy protection.
And not long ago in 2014, a large online bullion dealer, Tulving Company, suddenly collapsed and failed, presumably with 40 million dollars of their customer’s money.
Those two business failures alone should make you wonder why they failed at all.
But really… it’s simple.
Online metal dealers make money on pure volume, using a minimal spread as profit. (The spread is the small difference between the buying and selling prices, and it changes by the minute during trading hours)
The problem is the spread, and thus profit, is so small that they constantly need new orders and cash to buy bullion to fill old orders… Kinda like a ponzi scheme.
No new cash coming in… and wham… out of business!
And what do the burned customers do then? They’re online businesses without a face, so they can’t simply walk into their shop. Basically all they can do is file a legal claim, and hope to get a few cents on the dollar back.
The good thing is that you don’t have to worry about that happening to you.
Get some peace of mind when you buy or sell precious metals
If you want to buy or sell gold or silver bullion, no matter how large or small an order, simply go to your local dealer! (yep – that’s us if you’re in New Hampshire, northern Mass, or southern Maine)
Frankly, you’ll pay a little more because of the spread (because I want to stay in business), but you’ll deal with a real person, in a real shop, and be able to stop in and see us and ask us questions.
Isn’t it worth it to not worry about losing your hard-earned dollars, or not getting what you paid for?
A couple of things to consider before you select
a local bullion dealer to buy or sell precious metals
- Check the BBB website for lots of recent customer complaints (remember, every business gets a complaint now and then, but good ones will rectify the problem)
- Deal with a coin/precious metal shop that’s been around a while, is reputable, and has many years of experience
- Talk with them in person, or over the phone
- Find out what the approximate delivery time is for your order
Hopefully, this information is helpful to you!
And if you have any questions about this, call us at 603-926-7771
or stop in and see us at our Hampton, NH coin shop!
Seacoast Coin & Jewelry
725 Lafayette Road
Hampton, NH 03842