Questions to Ask Before Buying Gold or Silver
Buying physical precious metals is straightforward once you know what to ask. The goal is simple: own genuine metal at a fair cost over spot, from a dealer who'll buy it back fairly later. These questions get you there.
What's the premium over spot?
Every bullion product sells above the live spot price. That premium covers minting, distribution, and the dealer's margin, and it varies by product — generic rounds and bars are cheapest, government coins like Eagles and Maples cost more. Ask for the all-in price and compare it to the current spot value so you know exactly what you're paying for the metal versus the premium.
Use the live calculator to check an item's melt value before you buy, so the premium is obvious.
How do I know it's genuine?
Buy from established dealers, and favor recognized products — sovereign-mint coins and bars from well-known refiners are easiest to authenticate and resell. Reputable shops test metal and stand behind what they sell. Be wary of deals well below normal premiums; if a price seems too good, the metal may not be what it claims.
What will you pay to buy it back?
Liquidity matters. Before buying, ask the dealer what they'd pay to buy the same item back today. A tight gap between their sell and buy prices signals a healthy, fair market in that product. Wide spreads — or no buyback at all — are a reason to reconsider.
How will I store it?
Physical metal needs safekeeping. Decide between a home safe and a bank or third-party depository before you buy, and factor any storage cost into the decision. Keep your receipts and product documentation — they make eventual resale smoother.
Once you own metal, track your whole position's live value with the Stack Tracker.
Frequently asked questions
Are coins or bars better for buying silver?+
Bars and generic rounds carry lower premiums per ounce, so you get more metal for your money. Government coins like Eagles cost more but are the most recognizable and liquid. Many buyers hold a mix.
What's a reasonable premium over spot?+
It varies with product and market conditions. Generic rounds and bars carry the smallest premiums; sovereign coins carry more. Compare the all-in price to live spot and shop a couple of dealers to gauge what's fair right now.
Should I buy graded bullion coins?+
For pure metal exposure, no — you're paying extra for the grade, not more metal. Graded bullion makes sense only if you specifically want the collectible angle.