To choose a precious metals dealer, verify the company’s record, get the all-in price, the buyback terms and a shipping date in writing before paying, and finally, confirm where the metal will be held in your name. Those checks target the points where buyers lose money: when Rosland Capital filed for Chapter 11 bankruptcy on July 2, 2026, its customers were owed about $49 million for metal they had paid for but never received.
The checks follow the Commodity Futures Trading Commission (CFTC) 10 Things to Ask Before Buying Physical Gold, Silver, or Other Metals and Federal Trade Commission (FTC) investment scams guidance, and the Rosland Capital case study shows what skipping them can cost.
How to Choose a Precious Metals Dealer in 7 Steps
The safest way to buy gold is to verify the dealer first and get every price, fee and delivery term in writing:
- Verify the company: look into their registration, Better Business Bureau (BBB) profile, reviews and regulator records.
- Get the full price in writing: Ensure the product, the premium over spot and every fee are all documented
- Get the buyback terms in writing and compare the round-trip cost.
- Know the product: bullion or collectible, and how authenticity is guaranteed.
- Confirm delivery and storage: the ship date and where the metal will be held, in your name.
- For an individual retirement account (IRA), confirm the custodian, the depository and every fee.
- Walk away from pressure, promised returns and offers to skip paperwork.
Check the Dealer’s Background and Reputation
Start with records you can look up yourself:
- Company record. Confirm the legal name, owners, address and years in business with your secretary of state, and check your state attorney general or securities regulator for complaints, as the CFTC recommends.
- Current BBB profile. Check the rating, accreditation status and complaint history on the live BBB profile, not a badge on a website.
- Reviews and complaint patterns. Read reviews on the BBB, Google and Trustpilot. Repeated recent complaints about delivery, payment or buybacks matter more than the total, as the Rosland Capital case on how to read dealer complaints shows.
- Trade associations. Confirm membership in the Industry Council for Tangible Assets (ICTA), the Professional Numismatists Guild (PNG) or the American Numismatic Association (ANA) on the association’s own website, not from a logo.
- Salesperson registration. The CFTC says salespeople who advise what, when or how much to buy may need to register with the CFTC, the U.S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) or a state regulator. Check FINRA BrokerCheck or the National Futures Association’s BASIC system.
Spot Price Is Not Your Price: How Dealer Pricing Works
The spot price is the current price for raw metal in wholesale and futures markets. A dealer’s selling price equals the spot value of the metal plus a premium. In addition,the dealer’s buyback price is lower than its selling price, so physical gold cannot be bought from a dealer at spot. Orion Metal Exchange’s live price chart tracks spot, and “how gold and silver market pricing works” article covers the rest.
How Much Over Spot Should You Pay for Gold?
There is no single right answer to how much over spot you should pay for gold. Why? Because the premium depends on the product, the unit size, the mint or refiner, the payment method and market demand, but here’s how to calculate it on the exact product:
- Metal value = weight in troy ounces × current spot price.
- Premium = the dealer’s price per unit − the metal value.
- Premium percentage = the premium ÷ the metal value.
- Repeat with a second dealer for the same product, at the same moment.
Percentage ranges quoted online cannot account for your product or today’s market, and collectible coins usually carry somewhat higher premiums than bullion.
Gold Buy-Sell Spread: What Owning Gold Costs Round Trip
Dealers sell metal above spot and buy it back below spot, the CFTC explains. That difference, the gold buy sell spread, is how much the metal must gain before you break even, so ask for the buyback price along with the selling price. Commissions are often built into the spread, the CFTC notes.
Comparing Two Dealers’ Quotes on the Same Gold Coin
Example: 10 one-ounce gold bullion coins, the same coin at 2 dealers, with spot at $4,000 an ounce (these are illustrative numbers, and not quotes from any company).
| Illustrative example | Company A | Company B |
|---|---|---|
| Quoted price per coin | $4,160 (4.0% over spot) | $4,200 (5.0% over spot) |
| Shipping insurance | $95 | Included |
| Total paid | $41,695 | $42,000 |
| Buyback price per coin, same day | $3,960 | $3,980 |
| Spread per coin | $200 | $220 |
| Buyback fees | 2% liquidation fee ($792) | None |
| Net if sold back the same day | $38,808 | $39,800 |
| Round-trip cost | $2,887 (6.9%) | $2,200 (5.2%) |
As you can see, Company A has the lower price per coin and the smaller spread, but after shipping and the liquidation fee, it costs $687 more round trip than Company B. So, compare the net amount, not the first line. Orion Metal Exchange’s Free Price Analysis reviews an existing quote or invoice line by line.
How Much Do Gold Dealers Charge? Every Cost to Get in Writing
The premium is only one line of what gold dealers charge. The CFTC is direct: “If fees are not available in writing before your purchase, that is a red flag.”
| Cost | What to ask |
|---|---|
| Premium over spot | The price per unit and the spot price at the time of the quote |
| Payment method | Whether paying by card, check or wire changes the price |
| Shipping and insurance | The cost, the insured value and whether a signature is required |
| Storage | The annual fee, whether it is flat or based on value, and what it covers |
Also ask how the salesperson is paid; a refusal is a legitimate reason to keep looking.
Gold Buyback Policy: The Terms to Get in Writing
A gold buyback policy decides what you receive when you sell, so read it while you are still comparing dealers. A written policy should cover:
- Price basis: how the offer is set for your product, and when it is locked.
- Deductions: any liquidation, processing or testing fees.
- Inspection: whether the offer can change after the dealer receives your metal.
- Shipping: who pays for insured shipping, and for return shipping if you decline a revised offer.
- Payment timing: how many business days after arrival you are paid.
Treat an unusually high preliminary quote with care: some buyers secure the shipment, then lower the offer or add fees, knowing the seller may not want to pay for return shipping. The Orion Metal Exchange guide to selling gold coins covers the full process.
Can You Sell Gold at Spot Price?
Sometimes close to it. Whether you can sell gold at spot price depends on the product and the market: widely traded bullion coins and bars get offers closest to spot, while collectibles can get offers that might be below what the buyer paid.
Bullion vs Numismatic Coins: Know What You Are Buying
The difference between bullion vs numismatic coins determines how a coin is priced, how easy it is to compare and how easy it is to resell.
| Bullion | Semi-numismatic | Numismatic (collectible) | |
|---|---|---|---|
| Priced mainly on | Metal content | Metal content plus collector demand | Rarity, grade and collector demand |
| Premium over spot | Lowest | Higher | Highest |
| IRA eligibility | Many products qualify if they meet Internal Revenue Service (IRS) standards | Varies by product | Generally not eligible |
The CFTC notes that “semi-numismatic” has no standard definition and can be used to justify higher markups. For more detail, see spot price, bars, coins and numismatics and investment-grade gold coins.
How to Avoid Counterfeit Gold Coins and Bars
Counterfeit gold coins and bars, including tungsten-filled bars, reach buyers through sellers who cannot be verified. Buying from a verified dealer is the main protection, so ask:
- Where the dealer sources its products. Government mints sell bullion through authorized distributors, such as the United States Mint’s authorized purchasers, and bars should come from refiners accredited by the London Bullion Market Association (LBMA).
- Whether authenticity is guaranteed in writing, including what happens if an item later fails testing.
On delivery, compare weight and dimensions with the published specifications and check that sealed packaging and serial numbers match the invoice. A certificate of authenticity alone is weak proof, because certificates can be copied. The Numismatic Guaranty Company (NGC) keeps a counterfeit detection resource for specific coins.
Delivery and Storage: When Your Metal Ships and Where It Is Held
Get the Shipping Window in Writing
Rosland Capital customers who paid for metal the dealer had not yet bought ended up as creditors in a bankruptcy. When you order, confirm whether the product is in stock, get the shipping window printed on the invoice, and make sure the package is insured, tracked and signed for on delivery.
Gold Storage: Home Delivery or a Depository?
Gold storage comes down to who holds the metal and who insures it. Metal delivered home is yours to secure, and homeowners’ policies often cap coverage for bullion (see the beginner’s guide to choosing a home safe). Bank safe deposit boxes are not insured by the Federal Deposit Insurance Corporation (FDIC), while an independent depository insures metal for an annual fee.
What to Check at a Precious Metals Depository
If a dealer recommends a precious metals depository, verify:
- Independence: whether the dealer owns the depository.
- Insurance and audits: who insures the metal, and whether independent audits take place.
- Segregated or commingled storage: whether your exact items are set aside or pooled. Segregated storage usually costs more.
- Statements and withdrawals: itemized holdings in your name, and how long a withdrawal takes.
Allocated vs Unallocated Gold
With allocated vs unallocated gold, the question is ownership. Allocated metal is specific metal assigned to you and recorded in your name. Unallocated metal is a claim on a pool, which can leave you as a creditor if the provider fails, so ask for “allocated” in writing.
Buying Metals for a Precious Metals IRA
IRS rules require IRA metal to be held by a trustee or custodian at an approved depository, not at home or by the dealer, so an IRA purchase involves three providers, each with its own fees. Ask each one for its fee schedule in writing, and ask how any fee-reimbursement or “free” metal offer is funded. Orion Metal Exchange’s guide to precious metals IRA custodians and depositories covers IRA storage, insurance and fees in detail.
What the IRS allows for home storage explains the custody rules. Consult your tax advisor regarding your individual circumstances.
ID Checks and IRS Reporting: What a Legitimate Dealer Will Ask You
Requests for ID or tax information show a dealer is following federal rules. The warning sign is an offer to split an order or skip paperwork to avoid a report.
| Situation | Rule | What you may be asked for |
|---|---|---|
| Paying more than $10,000 in cash | IRS Form 8300 within 15 days; cash includes some cashier’s checks and money orders, and related payments count together | Photo ID and a taxpayer identification number |
| Selling certain products back | IRS Form 1099-B for products and quantities that match CFTC-approved futures contracts | IRS Form W-9 |
| Buying from a larger dealer | An anti-money-laundering program under 31 CFR Part 1027 of the Code of Federal Regulations | Identity verification on some orders |
Splitting cash payments to stay under the $10,000 threshold is called structuring, and it is illegal even when the money is legitimate.
How Much Gold Can You Sell Without Reporting?
There is no single dollar amount. How much gold you can sell without reporting depends on the product and quantity: a dealer files Form 1099-B only when both match CFTC-approved futures contracts, counting sales within 24 hours together. Ask which of your products are reportable when you request a quote.
Whether a sale is reported does not change whether a gain is taxable, as what tax you pay when you sell gold or silver explains. Consult your tax advisor regarding your individual circumstances.
Gold Scams and Sales-Pressure Red Flags
Over the past decade, the CFTC has charged companies with more than $500 million in alleged fraudulent sales of overpriced precious metals. Most gold scams follow the same script. Walk away when you see:
- An unsolicited call, email or social media message pushing a purchase.
- Urgency: “no better time than now,” or a limited-time or “exclusive” offer.
- Promised or “guaranteed” returns.
- Questions about your age, income or retirement balance before any discussion of products.
- Fees, buyback terms or a ship date that will not be put in writing, or an offer to help you avoid IRS reporting.
- Anyone telling you to buy gold and hand it to a courier (see the FAQ on the gold bar scam below).
Celebrity endorsements do not replace any of these checks, as Orion Metal Exchange explains in the hidden costs of celebrity gold ads.
Gold IRA Scams: Rushed Rollovers and “Free” Metal Offers
Gold IRA scams usually pair market worries with a rushed rollover. Watch for:
- Pressure to move retirement money before you have compared fees.
- “Free” silver or fee credits with no clear explanation of how they are paid for.
- Claims that IRA metal can be kept at home, or custodian statements that do not list your metal.
Report suspected fraud to the FTC at ReportFraud.ftc.gov and to your state securities regulator.
Questions to Ask Before Buying Gold From a Dealer (Checklist)
Use these questions to ask before buying gold from a dealer as a checklist. Each one should leave you with a document or a number you can keep.
| Ask | What you should receive | Red flag |
|---|---|---|
| 1. Who owns the company, and since when? | A legal name and record you can look up | No record anywhere |
| 2. What is the all-in price, including the premium over spot? | An itemized written quote | Fees “explained on the call” |
| 3. What would you pay me for this product today? | A buyback price in writing | “We’ll see when you sell” |
| 4. What does your buyback policy deduct, and how fast do you pay? | A written buyback policy | Fees disclosed only at the sale |
| 5. Where do you source products, and is authenticity guaranteed? | Sourcing details and a written guarantee | A certificate as the only proof |
| 6. When will my metal ship? | A shipping window on the invoice | Open-ended “processing” |
| 7. Where will my metal be stored, and in whose name? | The depository name and itemized statements | No statements |
| 8. For an IRA, who is the custodian, and what are all the fees? | Each party’s fee schedule | The dealer controls every account |
| 9. What ID and tax forms will you need? | An explanation of Form 8300 and Form 1099-B | An offer to avoid reporting |
How to Choose a Precious Metals Dealer: FAQs
How Do You Know if a Gold Dealer Is Reputable?
A reputable gold dealer has a record you can verify: state registration and years in business, a current BBB profile without repeated delivery or buyback complaints, and written pricing, fees, buyback terms and a ship date before you pay.
Is It Safe to Buy Gold Online?
Buying gold online is safe when the dealer is verified, every price and fee is in writing, and the metal ships insured and tracked with a signature required. Pay by a traceable method and check the package against the invoice on arrival. See why investors choose national bullion exchanges over local coin shops.
How Much Over Spot Should I Pay for Silver?
There is no fixed number. Silver premiums usually run higher than gold premiums as a percentage, because minting and shipping costs weigh more on a lower-priced metal. Compare the same silver product from two dealers at the same time.
How Much Gold Can You Buy Without Reporting?
Reporting depends on how you pay, not how much gold you buy. A dealer files Form 8300 when it receives more than $10,000 in cash for one purchase or for related purchases. Consult your tax advisor regarding your individual circumstances.
What Is the Gold Bar Scam?
In the gold bar scam, impostors posing as government or bank officials tell victims to buy gold bars and hand them to a courier to protect their money. The FTC says real agencies never ask for this; hang up and report it at ReportFraud.ftc.gov.
How Orion Metal Exchange Can Help
Orion Metal Exchange can be checked against the same list in this guide:
- Written pricing: Orion Metal Exchange lists live prices online and confirms each product and price by phone before an order is funded.
- A second look at another quote: The Orion Metal Exchange Free Price Analysis compares an existing invoice or quote with spot, line by line.
- Buyback terms: Orion Metal Exchange pays sellers within 4 to 7 business days after the metals arrive, under a commission-free buyback policy with no liquidation fees.
- Storage and IRAs: Orion Metal Exchange ships insured and trackable or stores metal at an insured commercial depository, and its IRA department works with IRS-approved depositories such as Brink’s, Delaware Depository Service Company (DDSC) and International Depository Services (IDS).
- Company record: Orion Metal Exchange has an A+ rating on its BBB profile and has been BBB-accredited since March 9, 2021, as of September 30, 2026.
To get an Orion Metal Exchange quote with every line in writing, or to have another dealer’s quote reviewed, contact Orion Metal Exchange or call 1-800-559-0088.
Important Disclosure
This article is general education on evaluating a precious metals dealer, not tax, legal, accounting, financial, investment or trading advice, and not a recommendation to buy, sell or hold any precious metal. Orion Metal Exchange does not provide financial or tax advice.
Precious metals prices fluctuate and past performance does not guarantee future results. The pricing example is illustrative. Consult a qualified tax advisor, attorney or financial professional before acting.
