Precious metals have undoubtedly become some of the hottest investments of the decade. With 1-year returns ranging from over 60% to 120% — it’s no surprise that gold, silver, platinum and palladium are being hailed as attractive alternative assets and strategic portfolio diversifiers.
But where do you get investment-grade bullion and who do you buy it from? The airways are packed with C-list celebrities, talking news heads, aspiring influencers and throwback TV stars touting the benefits of gold. Have they suddenly become financial experts? Do they understand currency devaluation and liquidity risk? Not likely. The truth is they’re high-priced endorsers who know little about your money, your market exposure, or your retirement timeline.
So, it’s important to purchase precious metals from a company that doesn’t inflate pricing to cover “talent” premiums. Equally important are strong investor reviews and a transparent, commission-free buyback policy — both hallmarks of an investor-focused precious metals firm.
Beware the Celebrity Mark-Up
Paid endorsers cost money — not only to appear on a website, a social media page, or a TV ad but in some cases, they also get a percentage of online engagement, ad spend, and even total sales volume.
Who covers the cost of this relationship? In many cases, it’s added to the markup, the price of the merchandise, and/or the cost of the sale. Translation, you do! But according to digital marketing publication, MarTech, consumers are becoming a bit less star struck.
“Celebrity endorsements are losing some credibility as audiences are increasingly skeptical of polished, high-gloss marketing. Consumers are more discerning and aware that endorsements are often transactional — less about authentic passion for the product and more about a paycheck. In an era of constant social media exposure, the mystique surrounding celebrities has faded. Their endorsements feel less aspirational and more commercial.”[1]
So, in the precious metals market, better pricing usually reflects lower overhead and certainly not the added expense of celebrity endorsements or high-profile spokespeople.
Read All Peer Reviews and Rankings
When making any type of significant purchase or investment, it’s natural to seek out the experience of others. Some call it “crowd wisdom” others call it “group ego” — regardless, if we can benefit from the firsthand feedback of “people like us” — we can save ourselves time, energy and money.
According to online review platform Trustpilot, peer reviews help to clear away the clutter of today’s endless choices and the overwhelming information of the modern era.
“Decisions, even minor ones, can be difficult and tiresome, particularly when we’re presented with so many options. Humans can only process so much information at once. Enter reviews. Consumer reviews, and popular opinion in general, sum up the wisdom of the general population and serve it as a means of collective intelligence, giving shape and structure to the wealth of information out there. People read reviews to guide them in their decision-making process.”[2]
Consumers not only tend to gravitate to products with a high volume of reviews but also those with a large percentage of positive ones. Indeed, 5-star reviews have become the price of entry for a successful product or brand.
And while peer reviews and customer rankings have become a means of separating good products from bad and honest companies from shady ones — it’s important to read both positive and negative write-ups. The latter are often a more reliable gauge of brand credibility, corporate values, and a company’s willingness to improve. This is particularly important when buying precious metals where fair pricing, dealer reputation, and ongoing customer support are critical.
Avoid Hidden Liquidity Risk
One of the primary advantages of owning precious metals is their inherent liquidity — or the ability to quickly convert them into cash when needed. A structured buyback program plays a vital role in supporting that liquidity by providing investors with an easy “exit strategy.”
According to Investopedia, an exit strategy is critical to maximizing the upside potential of precious metals:
- Exit strategies enable investors to maximize profits or minimize losses by liquidating assets under pre-set conditions.
- An exit plan enhances goal setting and preparedness for unexpected events.
- Exit strategies provide a clear roadmap for succession planning and asset disposal.[3]
We’ve all heard the phrase, “they get you coming and going.” In the precious metals space, that often means paying a fee to buy your metals — and another fee to sell or liquidate them. These embedded costs can erode your profit potential by building in an expensive exit.
It’s important to work with a dealer that offers a streamlined liquidation process at current market value, with no added commission. Gold, silver, platinum, and palladium are highly liquid assets but only if you can exit your position without surrendering value. Avoiding a “double-dipping” commission structure is a key consideration when selecting the right dealer in today’s competitive metals market.
Be An Informed Buyer
So, while precious metals have become the new “go-to” asset for wealth protection, it’s important to do your homework. Seek out a dealer that provides live online pricing and avoids excessive commissions or hidden markups. Review customer feedback — both positive and negative to better understand the overall client experience and how the company engages with investors. Finally, prioritize a gold dealer that offers an investor-friendly buyback policy to help ensure maximum liquidity and ROI when it’s time to cash out.
This sentiment is echoed by the Royal Canadian Mint who advise investors to consider price, trust, and accessibility when choosing a precious metals dealer:
Price – It’s important to get good a good value for your money when buying bullion. Shop around: visit different dealers’ websites and ask for competitive quotes to make sure you’re paying a fair price.
Trust – Look for an established dealer who understands the bullion market. Consider how long they’ve been in business and if they have a history of satisfied customers. Reading reviews on coin blogs and forums is one of the best ways to tell if a dealer is reliable.
Accessibility – You want a dealer who can provide great service, useful advice and fast delivery—in other words, somebody who makes it easy for you to acquire the products you want. And be sure to ask about their “buyback” policies and the process to sell your bullion back to the dealer.[4]
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[1] https://martech.org/most-celebrity-endorsements-are-expensive-mistakes/
[2] https://business.trustpilot.com/blog/learn-from-customers/why-do-people-read-reviews-what-our-research-revealed
[3] https://www.investopedia.com/terms/e/exitstrategy.asp?
[4] https://www.mint.ca/globalassets/invest/get-into-bullion/guide-to-buying-gold-silver-platinum-bullion.pdf?
