A properly diversified portfolio will promote stability and growth over time. Precious metals are a key ingredient to a properly diversified portfolio.
Choosing the right precious metal company is the most important choice you will make when investing in precious metals. Choosing the correct precious metal dealer can determine the difference between profit or loss in a precious metal investment.
How to choose the best precious metal company:
1. Better Business Bureau: Focus on the “Customer Complaints”
There are ways to research a company beyond a high-priced celebrity endorsement and a dealer’s selective display of glowing customer reviews previewed on their own website. The Better Business Bureau offers a platform for customers to file formal complaints against any legitimate company. A dealer’s BBB profile is where your research should begin. It’s important to carefully review a company’s customer complaints to determine if there is a negative pattern in a company’s business practices. The BBB will assign a rating of A+ to F, and in some cases “No Rating” or NR. It’s important to understand that a BBB rating only represents the BBB’s opinion of how the business is likely to interact with its customers and does not represent a customer’s satisfaction with the service and value received. The Better Business Bureau states, ”Customer Reviews are not used in the calculation of the BBB Letter Grade Rating.” And this is why we suggest that consumers focus on the content in the customer complaints filed more so than on the BBB company rating that’s displayed.
2. Buyer Beware: Advertising campaigns VS Legitimate review sites
The internet is where most consumers will look to locate a precious metal dealer. It’s important to understand the difference between a valid review site and the online advertiser that attempts to appear as a non-biased review site. A legitimate review site is designed to help consumers research and determine which dealer will best suit their precious metal needs. An advertising campaign site will only recommend a dealer to earn a commission or referral fee. In other words, the advertising campaign site’s recommendation is based on self-enrichment instead of the best interest of the consumer. In some cases, a precious metal dealer will own and control the advertising site itself to promote themselves as the best dealer company. Obviously, an advertising site that is funded by the same company it recommends or receives commissions from who they recommend is biased. Generally, the same companies that refuse to offer transparency through posting online product pricing will advertise in this manner.
A legitimate review site will:
Consider utilizing valid review sites such as the BBB, Retirement Living, Trustpilot, Consumer Affairs, and Google Reviews to research precious metal companies.
An advertising campaign site will:
These sites are motivated by profits and their recommendations are solely based on referral fees and commissions earned.
Once again, if an advertising site is to receive a referral fee or commission from the companies they recommend, the recommendation is biased and only intended to enrich themselves
3. Celebrity endorsements offer no value: pay more and receives less
Celebrity endorsements are commonly used in the precious metal industry. Celebrity endorsements are extremely costly. To offset the cost for a celebrity endorsement, a company will simply raise the cost of the products they sell. In the precious metal industry, this simply means the consumer will receive less metal for their money, and less money for their metal. The cost of a celebrity endorsement will equivalate to a higher cost at purchase and a lower value received at liquidation. To receive more metal for your money, and more money for your metal, consider companies that focus less on advertising and costly celebrity endorsements and more on customer satisfaction and value.
FAQ: Your Key to Understanding!
