How to buy gold locally: finding a coin shop you can trust

Where to buy gold in person

• Coin shops. Most buy and sell bullion coins and bars as well as collector coins, and they price bullion off the spot price. They’re the most useful local option for most buyers.
• Coin shows. Many dealers in one room, which makes it easy to compare prices on the same coin.
• Pawn shops. Some sell coins, but selection is limited and you’ll need to be confident the items are genuine.
• Jewelers. Jewelry prices include design, labor and retail costs, and much of the item isn’t gold: 14-karat jewelry is 58.3% gold. It’s a poor way to buy gold as an investment.
• Warehouse clubs. Costco has sold gold bars and coins to members through its website, not in its stores, with tight purchase limits.

How to check a local dealer

• Track record. How long has the shop been in business? Look at reviews, and check complaints with your state attorney general and the Better Business Bureau.
• Memberships. Membership in the American Numismatic Association or the Professional Numismatists Guild means the dealer has agreed to a code of ethics. The ANA’s code, for example, commits members not to knowingly sell counterfeits and to offer returns on non-bullion items.
• Clear prices. A good shop will tell you the spot price, its premium and what it pays for the same item.
• Testing equipment. Shops that buy from the public should be able to test metal, often with electronic testers or X-ray fluorescence analyzers.

Some states require dealers who buy precious metals from the public to register or keep records, which is one more thing a reputable shop will be set up for.

Check prices before you go

Look up the spot price, then call the shop for its price on the product you want. Compare it with two or three online dealers, including their shipping and any sales tax. Local prices are sometimes a little higher than online, and sometimes lower once shipping is counted. What gold really costs shows how to work out the premium.

Paying, and the $10,000 cash rule

Shops usually accept cash, checks and debit cards. Credit cards often cost a few percent more.

If you pay more than $10,000 in cash, the business must file Form 8300 with the IRS within 15 days, and it will send you a written statement by January 31 of the following year. Payments within 24 hours count together. Splitting a cash purchase into smaller payments to avoid the report is itself illegal, even when the money is legitimate.

Sales tax depends on your state. Some states exempt bullion and coins, some tax them, and some exempt only purchases above a set amount. Ask the shop what applies.

Before you leave the shop

• Check that sealed packaging is intact and that serial numbers on bars match their cards.
• Get an itemized receipt showing each product, its price and the date. You’ll need it to work out your gain when you sell.
• For a large purchase, ask whether the shop can arrange insured shipping or a scheduled pickup instead of carrying it out.

Selling gold locally

Get offers from more than one shop. Bullion coins and bars from well-known makers should fetch prices close to spot. For jewelry, the offer is based on the gold content, so it helps to know the karat: 10-karat is 41.7% gold, 14-karat 58.3% and 18-karat 75%. Expect to show ID, since many states require dealers to record who sells to them.

Local shop or online dealer?

	Local shop	Online dealer
See it before you pay	Yes	No
Premiums	Vary; sometimes higher	Often lower
Shipping	None	Often free above a minimum order
Selling back	Walk in and get paid	Ship it and wait for payment
Choice	Limited to what’s in stock	Wide

Many people use both: they compare prices online and buy wherever the total is lowest, or buy locally to avoid shipping and to build a relationship with a shop they can sell back to. Wherever you buy, the red flags when buying gold apply.

Frequently asked questions