Precious Metals FAQ
Common questions from new investors answered. From "Is gold a good investment?" to "How do I store it safely?"
Buying & Pricing
What's the difference between spot price and dealer price?
Spot price is the live market reference (COMEX futures). Dealers add 3–8% premium for processing, brand, purity verification, and profit. Example: Gold spot $2,000 = dealer asks $2,100–$2,160.
Should I buy coins or bars?
Bars have lower premiums (3–5%), better for accumulation. Coins have higher premiums (5–8%), better for liquidity and gifts. Most investors use a mix: 70% bars, 30% coins. Read full comparison.
How do I know I'm getting a fair price?
Call 3+ dealers. Check the same product (e.g., 10 oz bars) at each. Compare their premium percentages. The difference is often 1–2%, which translates to real money on large orders.
Is it safe to buy online?
Yes, from established dealers (APMEX, JM Bullion, SD Bullion). All offer insured shipping, money-back guarantees, and reputations to protect. Private sales and sketchy platforms = risk.
Can I negotiate dealer prices?
Rarely. Dealers set premiums based on volume and overhead. Large orders (10+ oz) might get 0.2–0.5% better terms. Always ask, but don't expect haggling like a used car lot.
Storage & Insurance
Where should I store my gold?
Home safe (best for small amounts, $5K–$50K) or professional vault (best for large amounts, $100K+). Home requires insurance rider on homeowner policy. Vaults include insurance. Full storage guide.
How much does storage cost?
Home: $1,500 safe + $30/year insurance rider. Vault: $100–500/year depending on amount and provider. Factor into return calculations.
Do I need insurance if I use a vault?
No. Professional vaults include insurance in their fees. Brinks, Delaware Depository, Loomis all provide full coverage.
Will my homeowner insurance cover gold?
Partially. Most cap precious metals at $2,500–$5,000. For more, add a rider (usually $20–50/year per $50K). Check your policy.
Investment & Taxes
Is gold a good investment?
Gold is portfolio insurance, not a growth asset. It hedges inflation and diversifies away from stocks. Expect 3–5% annualized returns (before storage/taxes), much lower than stocks. Full investment guide.
How is gold taxed?
Gains taxed as long-term capital gains (15–20% federal for most). Hold 1+ year. Short-term = ordinary income (up to 37%). Use an IRA for tax-free growth.
Do I have to report gold purchases?
Purchases under $10K cash: no reporting. Over $10K: dealers file Form 8300 (routine, not alarming). No tax triggered by purchase, only by sale at profit.
Can I hold gold in an IRA?
Yes. Gold must be IRA-eligible (99.5%+ purity). Requires a custodian. Best for tax-free growth. IRA setup guide.
Quality & Authenticity
How do I know gold is real?
Weight test (scale accuracy ±0.1g), magnet test (real gold isn't magnetic), sound test (real coins ring clearly). For serious concerns, professional XRF or Sigma verifiers exist (~$400+). But buying from reputable dealers eliminates this worry.
What's the difference between bullion and numismatic coins?
Bullion = sold by metal weight/purity. US Eagles, Maple Leafs. Numismatic = sold by rarity/collectibility. Older coins (pre-1933 US gold). Bullion has tighter spreads; numismatics have speculative premium.
Should I worry about counterfeits?
Not if buying from established dealers. Counterfeits are rare in main channels, common in private sales. Counterfeits guide.
Selling
When should I sell?
Sell when you need funds or rebalance portfolio (after 1+ year for tax efficiency). Timing the market is hard. Sell during rallies if patient.
How do I get fair value when selling?
Call 3+ dealers. Compare their buy-back spreads (they'll pay 97–99% of spot). Weight verification on their scale. Selling guide.
Will I get back what I paid?
Maybe not. If gold is down, you lose. If it's up, you make a profit (taxable). Factor premiums: if you paid $2,100 and gold is spot $1,900, you're underwater. This is why gold is insurance, not growth.
Getting Started
How much gold should I buy as a first-timer?
Start small: $500–$2,000. Enough to learn the process, not so much you panic. Once comfortable, scale up or dollar-cost average monthly.
Should I buy gold or silver?
Gold is more stable, easier to understand. Silver is more volatile, cheaper entry. Most buy both: 60% gold / 40% silver. Gold guide applies to silver too.
What's the best first step?
1. Check spot prices (MetalBrief dashboard). 2. Read buying guide. 3. Call 3 dealers, get quotes. 4. Place order. 5. Set up storage. Done.
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Still have questions? Check the MetalBrief dashboard for live prices and guides for deeper dives into each topic.