Best Gold Dealers

“Gold is often seen as a way to protect yourself from inflation, which is when the prices of goods and services go up over time,” said Rathgeber of ProGoldTrader. “The price of gold usually goes up when the value of the dollar goes down. This can help protect the value of your U.S. dollar holdings.”

He says that not only is gold thought of as a safe-haven asset, but it can give your portfolio some stability when the economy or markets are unstable.

In this guide, you will learn how to find a reputable gold dealer and what to consider before purchasing gold and other precious metals.

When comparing online gold dealers, look for ones with a clear refund and return policy. Most give you a window of at least three days to express dissatisfaction. Pay attention to whether there is a restocking fee and, if so, how much.

Always make sure the dealer isn’t on the Commodity Futures Trading Commission’s RED List (Registration Deficient List) before you make a purchase.

Other things to look for to ensure you find a reputable company include:

• Established transaction history: One of the ways to determine whether you can trust a dealer is by looking at its transactions and customer reviews. Companies that have moved billions’ worth of metals have built up trust and good reputations. However, some customer reviews may be fabricated or otherwise dishonest, so make sure you don’t solely rely on those when deciding which company to use.
• Physical headquarters: Even if you complete the whole transaction over the phone or on a computer, confirm that the online dealer has a physical headquarters listed somewhere. This makes it easier to contact the company if you have any issues. Avoid dealers who only list a P.O. Box.
• Transparent pricing: Clear pricing on a company’s website is a plus, but this can be difficult to find (you might need to call a representative to get the most accurate and up-to-date prices). Companies that do not offer quick and transparent bid-ask prices can cause unfavorable delays that might result in a different price than you expected.
• Risk disclosures: Any investment comes with some risk. The best gold dealers are upfront about the potential risks and realities of investing in precious metals, so look for a disclosure page that gives you the facts.
• Payment options: Online gold dealers commonly accept payments by credit card, check, money order, wire transfer, PayPal and Bitcoin. Be sure that your dealer accepts your preferred payment method.

» MORE: How to buy gold

Gold dealer scams to avoid

As with any industry, you'll want to be on the lookout for scams when comparing gold dealers. The most common scam is selling fake gold, especially for purchases online or over the phone. Avoid this by purchasing gold only from established dealers.

Other scams might include:

• Partial delivery: Some people purchase gold only to receive a portion of what they ordered. The scammer may disappear entirely or claim an order error and promise to deliver the rest, possibly for an additional shipping charge. Scammers know that trust is earned. Don't let your guard down because you receive what you expect the first time.
• Unwarranted pricing: It is not uncommon for gold dealers to sell a piece for whatever someone will pay for it. The sales prices of the same coin can vary by hundreds or even thousands of dollars from one dealer to the next. Protect yourself by being knowledgeable about what you’re buying and whom you’re working with.

» MORE: What is a good investment?

Online gold dealers typically sell bars or rounds that range from as small as one-tenth of an ounce to a kilogram. The standard quality of gold fineness is .999, or 99.9% pure. Gold in its purest form is too soft to handle, so an alloy like copper is added to keep the shape of the gold bar or round intact.

Unlike paper money that can be overprinted and devalued, gold and other precious metals are tangible assets with naturally limited supplies. This helps keep the market value of gold stable, which makes it an attractive investment option for many people.

Most people buy gold because it has historically held its value, which can protect against inflation. Precious metals may act as a hedge for storing wealth in times of economic and political uncertainty.

Gold might be a pretty way to invest, but it’s not guaranteed to keep its value. Opponents of gold also don’t like that it isn’t a cash-generating asset. Compared with stocks, the long-term returns are relatively low.

To make our selection for the top gold dealer companies, we analyzed over 3,000 customer reviews and overall ratings from ConsumerAffairs readers who have used an online gold dealer in the past three years.

Customer ratings weighed these picks heavily, and we eliminated any company that had less than 50 reviews or lower than a four-star average rating in the past three years. Some other factors we considered include the following:

• Fees and fee transparency: Since many gold dealers require potential clients to call in for the current prices, we relied on reviews to determine if customers thought the pricing was fair or unreasonable.
• Availability: All of our top picks are based in California but serve customers across the U.S. A few picks also have international services.
• Customer service: We considered the top-rated companies that had the most positive customer service ratings. While many gold dealers do not allow full online purchases, all of our top picks were praised by reviewers for the ease of purchase over phone or email.