What are Bullion Dealers?

If you want to invest in bullion coins or precious metals, it is vital to take time to navigate the world of bullion dealers as well as dealers of gold.

What are bullion dealers, by the way? Well, bullion dealers act as key intermediaries providing an extensive selection of palladium, platinum, gold and silver coins, and other precious metals.

From understanding authenticity verification and picking reliable dealers to knowing pricing structures, gaining a proper understanding of how these dealers operate is critical for making sound investment decisions in the respected, valued as well as dynamic bullion market.

The Cheap and Affordable Rates Are Obtained at the Expense of Understanding and Expertise

Numerous low-cost online bullion dealers, which did not exist when our gold bullion and silver sales began 26 years ago, exhibit limited knowledge and insight in these markets.

Relying on such constrained understanding can result in significant long-term costs. Their point-and-click, Wal-Mart-style approach to selling gold and silver underscores this trend.

Most of these companies lack personalized specialists to guide customers, especially first-time gold and silver buyers. Instead, they anticipate buyers to navigate websites independently, often leading to purchases misaligned with their original goals.

When it comes time to sell, these dealers’ buy-back or bid pricing often falls short of the apparent attractiveness of their sale prices. Surprisingly, slightly pricier companies during purchase tend to offer more favorable bid pricing when selling gold and silver.

Ultimately, the gained percentage remains consistent, irrespective of the chosen company. Recognizing the intricate nature of gold and silver markets, it becomes evident that investing with a dealer that values expertise and provides personalized guidance is essential for informed and advantageous transactions.

Informed Choices are Paramount

We value educated buyers. Before any investment, we ensure a deep understanding of your goals. A dedicated gold and silver specialist crafts a customized plan to guide you effectively toward achieving these objectives. Knowledge shapes a successful investment journey.

A Confession Unveiled

In my pursuit of purchase, the price often dominates my considerations. Yet, a hidden reality exists in the shadows—one that eludes my attention. My transactions with prominent online bullion dealers may unknowingly subject me to intricate counterparty risk.

Much like farmers shielding their crops from nature’s whims, large bullion dealers secure themselves against gold and silver price drops.

These safeguards are orchestrated through brokers and cleared by firms like MF Global, led by Jon Corzine, which famously crumbled in 2011, resulting in the vanishing of over $1 billion from client accounts.

Moreover, the maneuvers of bullion dealers occur on the COMEX exchange, an entity unreservedly admitting to leveraging gold and silver trades to a staggering 100 times the actual available physical metal.

Concerns linger that COMEX might falter in fulfilling its promises, locking paper contract holders— including major bullion dealers—out of the market and inaccessible to their holdings.

Fortuitously, such predicaments evade Austin Rare Coins and Bullion’s approach, affirming its commitment to a safer investment journey.


When I consider transacting with an online bullion dealer, it’s crucial to acknowledge their credibility and operation.

Yet, amidst the façade of efficiency, there’s a concealed truth—they safeguard themselves through substantial short positions in gold and silver, a prudent measure to mitigate potential losses.

This rationale is sensible, yet it exposes me to counterparty risks within the realm of paper gold and silver markets. My hard-earned money might be frozen, and my order undelivered, even if the online bullion company bears no blame.

This embodies the essence of counterparty risk, a predicament synonymous with budget-friendly bullion dealers, who all depend on paper gold and silver market hedges.

Ironically, the very entities cautioning against an impending crash in these markets are deeply entrenched within them.

Remarkably, a good company stands distinct by abstaining from such hedges, enhancing my security, and shielding me from counterparty vulnerabilities.

Assertions About Private And Non-Reportable Gold Lack Authenticity

Entering the gold and silver markets often hinges on the privacy and security these assets offer, distinct from stocks and bonds.

Acquiring gold is discreet, devoid of social security or driver’s license requisites. Yet, during sales, certain gold types demand dealer reporting. Numerous online bullion firms assert that all gold sales are reported, but that’s an erroneous notion. Thankfully, debunking this claim doesn’t render it true.

Suggested Reading:  Watch out for Fake Gold Dealers

Unveiling the Reality

In 1974, as gold and silver investments regained legality post the 1933 confiscation, a collaborative effort between the Industry Council for Tangible Assets and the IRS determined reportable transactions in precious metals.

The definitive catalog of private and non-reportable gold, silver, platinum, Canadian maple leaf, and palladium items has endured unchanged.

Nonetheless, heed the caution when considering advice from select online gold and silver bullion dealers, dismissing the value of Private and Non-Reportable Gold. Such misguided or misleading counsel could lead to frustrations upon resale.

An uninformed decision during purchase may compel you to disclose your social security number and identification for a company-submitted 1099 during selling.

Reality reveals that distinctions exist among items, some bestowing superior privacy protection. Regrettably, these companies might veil these options from you.

For those esteeming privacy, gold and silver specialist can craft a portfolio requiring no company-level reporting upon resale, while adhering to mandatory IRS profit notifications.

This underscores that while we are exempt from reporting on your behalf, IRS awareness of profits remains requisite.

Discrediting Claims About Numismatic Coins

Numerous seasoned dealers, including ourselves, advocate for a diversified portfolio that marries Numismatic Coins with bullion.

Rare numismatic coins, unlike bullion, present unique benefits—shielding against government intervention, ensuring privacy, and often yielding higher returns based on products and market trends.

Ironically, certain budget online bullion dealers dismiss numismatic coins, asserting they lack confiscation protection and are suited only for experts.

One dealer even urges an all-inclusive approach to gold investment, ignoring the advantages of diversification.

We contest this flawed advice, suspecting a lack of understanding regarding laws and the security offered by blending gold and silver holdings with numismatic coins.

Unveiling Legal Safeguards for Numismatic Coins: Fact Check

Misconceptions Abound

The assertions of a precious metal online like gold, silver, and rare coin or bullion coin companies can often lead one astray. Contrary to their narratives, numismatic coins are protected by established statutes from government intervention.

This misinformation stems from the 1933 Gold Confiscation Act, which allegedly exempted only exceedingly rare coins. However, the definition extends beyond exorbitantly priced coins, rendering this belief erroneous.

Clarifying a Historical Context

Post the 1933 Gold Confiscation Act, collectors and enthusiasts of gold bars, silver bars, and rare coins lobbied for a revised understanding of the term “rare and unusual.”

Their efforts yielded success in 1954, amending section 54.25 of title 31 of the Code of Federal Regulations.

This clarification unequivocally affirms that pre-1933 gold coins hold “recognized special value to collectors of rare and unusual coin,” while post-April 5, 1933 gold coins are “presumed not to be of recognized special value.”

Neglected Revelations

Subsequent statutes also designate all foreign gold coins minted before 1959 as rare and unusual. Astonishingly, these vital legal distinctions evade the attention of online bullion dealers.

Plain and Binding

Gold coins dated 1933 and earlier undoubtedly enjoy the designation of rare and unusual, thus offering superior confiscation safeguards compared to owning bullion alone.

Astonishingly, approximately 85% of online bullion dealers disregard this fundamental legal truth.

Navigating the Investment Landscape: My Responsibility

Now that you know what is a bullion dealer, it is vital to know that the majority of online gold and silver bullion providers presume me to be an expert, often disseminating misinformation.

In contrast, the best bullion company prioritizes equipping me with comprehensive knowledge before I commit any funds. As an investor, my role isn’t to be an industry expert but to identify a trustworthy expert. With an impeccable track record and no outstanding Better Business Bureau complaints, we stand apart.

Lastly, those who are planning to purchase bullion or want to buy gold online must be given well-balanced and easy-to-access information before deciding on how to invest. All that information, be it gold bullion, silver coins, London Bullion Market Association (LBMA), or ETFs is free to use.

Tim Schmidt


Tim Schmidt is an Entrepreneur who has covered retirement investing since 2012. He started IRA Investing to share his expertise in using his Self-Directed IRA for alternative investments. His views on retirement investing have been highlighted in USA Today, Business Insider, Tech Times, and more. He invested with Goldco.