Eight Important Rules For Buying Silver and Gold Bullion Online

Online auction sites are a wonderful place to buy silver and gold bullion. I have been able to find great deals in the past, on both gold and silver coins, on auctions sites such as eBay.

Not only does eBay have a huge selection of bullion coins, but an investor or collector is able to buy as little as one coin at a time - something that can't be done with the large online coin dealers.

1. Be Realistic

Although eBay is renowned for its bargain prices, don't expect to be able to buy silver and gold bullion at a 50% discount. You can, however, find gold and silver coins at prices offered below what the big-name online coin dealers are quoting.

Think of it this way - Let's say that you you buy ten coins and save ten percent off the price that you would have paid somewhere else That is like getting one gold or silver bullion coin . . .for FREE! That's a pretty good deal, don't you think?

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2. Always Check The Sellers Feedback

Feedback is a valuable indicator of a seller's reputation on eBay. A Feedback Profile includes a Feedback Score, as well as comments from the buyer's about their bullion transaction.

However . . .

Even a seller with a high feedback score must be examined closely. Since eBay allows retaliatory feedback, buyers are often hesitant about giving feedback that is negative. Therefore, you must examine the content of the feedback comments.

Look through the first one or two pages of the buyer's feedback and carefully read the comments. Pay especially close attention to the seller's reponses to any negative comments that you may find.

Good: If the seller is apologetic and offers to make amends by offering a refund. Bad: If the seller responds with a retaliatory negative comment!

3. Try To Avoid Buying From Power Sellers

eBay classifies a "Power Seller" as a member who maintains a 98% positive feedback rating, provides a high level of service to their buyers, and sells a significant volume of items. Sounds like someone that you would want to purchase from right?

Nope.

You should generally try to avoid eBay sellers with the status of "Power Seller." Here's why:

In order to achieve the the status of "Power Seller," an eBay member must sell a significant volume of items. And since they are moving large volumes of coins, they probably won't know their inventory very well.

I believe that knowing what you are buying and selling is extremely important when it comes to gold and silver bullion. If you examine the listings of some of these so-called "Power Sellers" you will find that they have alot of bids on their bullion, have long, detailed, glowing, over-hyped descriptions of the coins.

I have found that it is best to buy from bullion sellers that are fairly new yet do have some positive feedback. I have found some really great bargains from relatively unknown sellers!

4. Buy In Lots

You can find some really great deals on silver and gold bullion that are sold in 'lots." Why is this? Well, many times, if a person needs to sell his gold or silver coins in order to make some fast cash, he will sell them together in a 'lot."

Here's what's really neat about buying coins in lots: If you are searching for a specific gold or silver coin and locate it in a 'lot' of coins, you can oftentimes find it much cheaper than if you had purchased the coin separately!

I have, on occasion, bought a 'lot' of coins just to get a specific bullion coin. I ended up paying less for the entire lot then I would have paid for that one specific coin, if I had purchased it separately from someone else!

If you're not interested in keeping the other coins that you purchased in the lot, you can turn around and resell them on eBay and get reimbursed for your purchase cost of that one specific coin!

5. Don't Overlook Reserve Price Auctions

Be on the lookout for silver and gold bullion auctions that have a "No Reserve Price." Why is this important? Well, an auction that has a "reserve price" is one where the seller is reluctant to sell their bullion below a certain price.

The amount of the reserve price is not disclosed to the bidders, but they will see that the auction has a reserve price and whether or not the reserve price has been met.

If a bidder does not meet the reserve price, the seller is not obligated to sell the bullion.

In the case of an auction with a "no reserve price," you have a better chance of getting the bullion at a good price because you don't have to bid up to what the seller deems as a 'reasonable' price!

6. Pay Attention To The Delivery Costs

Make sure that you factor in the delivery costs into your final price. If you are buying an expensive bullion item, you will definitely want delivery insurance. You will also want them to be shipped as quickly as possible, using Registered Mail or FedEx.

7. Be Sure To Read the Return and Refund Policies

Always, always read the bullion seller's return policy. A seller that is legitimate will have a return policy listed! You want to deal with sellers who offer a money-back guarantee.

Be sure to check the return time frame and if the seller charges a restocking fee. Some sellers may offer an exchange or credit on purchases rather than a money-back guarantee.

If you are not happy with the return policy, or if there is no policy listed, do not buy or bid from the seller! This is important!

8. Pay safely

Be sure that you complete your transaction on eBay by choosing to buy with a Bid, Buy It Now, or Best Offer. A transactions that is conducted outside of eBay is not covered by eBay's protection programs.

Try to pay with a credit card. A seller who accepts payment via a credit card will more likely than not deliver what they advertised. Why is this?

Let's say you bought a silver or gold bullion coin and never received the time. If you payed for the item with your VISA or MasterCard, the credit card company will provide a credit for the purchase price while they investigate. You must contact them within 60 days of the charge appearing on your monthly statement, however. The seller must prove that you received the bullion or you will not be responsible for the payment.

If a seller doesn't accept direct payment by credit card, make sure he uses PayPal. PayPal does offer some protection for buyers though their Buyer Complaint Policy.