There are hundreds of gold bullion dealers both on and off the line. Investing in gold requires some basic knowledge because there are many swindles and scams that occur all the time. It is vital that the consumer asks questions and not be in a hurry to get rich. Gold is a long-term investment and anyone planning to hit the jackpot overnight is sure to be disappointed.

The next thing about buying metals is to understand that a gold coin bullion dealer does not come cheap. The price of gold may be one thing but these dealers charge a commission for the work they do for you. The gold bullion dealers have marginal profit, they use the money to cover the costs of minting, delivery, staff, vault storage, security and other costs of investment.

One should also be aware that some gold bullion coin dealers only deal with collectible items. In the olden days, many types of gold and silver coins were manufactured. Many of the coins/bars were made for special occasions such as the Canadian $100 gold coin issues. However, one fact, which gold bullion dealers never divulge to consumers, is that the majority of these collectible items are never pure. These coins were only designed as souvenirs and more for decoration rather than the actual gold content. The few coins that are sold for their artistic design, as well as their gold content, are the USA gold eagle, the Canadian maple leaf, the South African Kruger Rand and the Chinese panda. It is up to the gold coin bullion dealer to verify that the gold content mentioned in these coins is the right amount- of course, you will have to pay the surveyors fees.

The other thing gold bullion coin dealers never tell consumers is that there are both recognized and unrecognized bullion bars. There are some gold bars made by major well-known refineries such as johnson-met they, Engelhard, Credit Suisse and the Royal Canadian Mint. However, there are hundreds of unrecognized bars from small local refineries that may or may not still be in business. Even though the purity of these bars may be identical to the major refinery bars, many financial institutions will not accept them. The gold bullion coin dealers should tell the consumer that buying and selling recognized bars is a lot easier than selling unrecognized products.

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For the consumer, finding trustworthy gold and silver bullion dealers is the most difficult aspect of investing. The dealer should be a member of various gold associations like ANA, CAN, and CAND. The consumer should not feel shy or afraid to ask for references to determine the trustworthiness and reputation of the firm. One can also check with the better business bureaus for any discrepancies in the financial affairs of these gold and silver bullion dealers.

Finally, remember there is a lot of hype about gold investment. Like any business adventure, there are some negatives and positives. The best way to minimize your risks is to talk to several gold bullion dealers and ask questions. Remember gold as an investment has low margins and very high risk and thus gold bullion dealers who tell you otherwise are simply not being honest.