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Buying Silver Locally

August 8, 2014 0 Comments

When it comes time to purchase your silver bars or silver coins you have essentially two main options to consider: buy your silver online, or buy your silver locally – in person. There are many pros and cons that go along with either choice and below we’re going to outline the benefits so that you can make the most informed decision when it comes time for you to buy silver.

Buying Silver Locally

Positives of Buying Silver Locally

Cash

One of the main reasons that our customers visit our showroom to purchase their silver in person is the ability to deal in cash. It is unadvisable to send cash through the mail so other than purchasing money orders with your cash and mailing them to your online bullion dealer, the only way to buy silver with cash is to visit your local bullion dealer.

Dealing in cash also eliminates a security risk that is associated with using your credit card online. Almost all online bullion dealers require a credit card for you to lock-in your silver order. Not only must you have a credit card in the first place but this is also an area of vulnerability with regards to hackers. You need to be sure that your online bullion dealer is up to date on all the current security standards, because hackers target weak websites to steal credit card information for identity theft and credit card fraud.

Examination and Inspection

When you buy silver online you’re relying on your online bullion dealer’s reputation, honesty and the quality of their photos. What we mean is that you’re buying a product blind and hoping that your online bullion dealer is being 100% honest that you are going to receive the product that is represented in their photograph. Most times it works out, but sometimes it doesn’t. Also, on standard products such as 1 oz silver bars where a manufacturer is not specified, you’re basically receiving a grab bag of sorts. But when you buy your silver in person you have the ability to hold in your hand, and inspect the actual product you’re going to buy with your own two eyes.

Immediate Fulfillment

Probably the most fulfilling side of any purchase in person, let alone silver, is that you get to walk home with the product in your hand; whether it be coins, clothes, or even drive home a new car. When you buy silver online you have to wait several days, and sometimes over a week before you actually get the silver in your hands. This is another key positive of buying silver locally. You can examine it, hold it, pay for it in cash and then leave with it that same day!

Negatives of Buying Silver Locally

Tax

This is probably one of the biggest negatives of buying silver in person. Although every state has different tax laws (for example, in Maryland if you spend over $1,000 dollars on gold and silver bullion, there is no tax) a great number of states charge sales tax on bullion purchases. When you buy silver online however, there is currently no tax. Although, you may want to keep an eye on this because it is a big topic that is making its entrance into the political arena (with Amazon being the key proponent for taxing online purchases). Online taxing will soon be a hot-button issue.

Diversity and Availability of Products

When you visit your local gold and silver dealer, more than likely they will not be able to offer the type of availability you can find online. This comes down to money and security. It is almost impossible to stock every kind and size of silver bar that is available on the market. Not only would this take an immense deal of capital, it would also pose a security risk because that local coin shop would now have a huge inventory that would require massive vaults to secure – this is highly unlikely. This is a main point where online silver dealers have the edge. Because they do not have to publicize their fulfillment locations, and because they have added time to get the product to you, they can offer more products and have them shipped from the actual silver distributors.

Transit Time

If you do not live right around the corner from your local coin and bullion dealer, then more than likely you have to drive there. They could be 15 minutes away, or even an hour or more. This adds a factor into your silver purchase that you do not have to think about when you buy silver online. You need to factor in the transit time, potential traffic, and also fuel costs (i.e.: if your dealer is 1 hour away, a round trip in your truck may cost you 3-4 gallons in gasoline – an additional 16 dollars or more). This is another clear advantage to online shopping where you can get your silver with a few clicks of your mouse.

For a detailed breakdown of local tax laws and other information, please view our Local Bullion Tax Laws page.

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