Jul 16, 2025 | Top Gold Investors
How to Spot a Trustworthy Precious Metals Dealer (And Avoid Scams)
Sharon Clark
Top Gold Investors Editor
Investing in precious metals like gold and silver can be a smart way to preserve wealth and diversify your financial portfolio. But as the popularity of gold investing grows, so do the risks of falling prey to unscrupulous dealers and scams. Whether you’re a seasoned investor or just getting started, choosing a reputable dealer is critical to protecting your investment.
In this blog, we’ll guide you through the red flags, key credentials, and best practices to help you spot a trustworthy precious metals dealer—and avoid costly scams.
Why Choosing the Right Dealer Matters?
Buying gold is not just about the product; it’s about trust. You’re not only purchasing a physical asset but also relying on the dealer’s credibility for fair pricing, authentic products, and transparent service. The wrong choice can lead to:
- Overpaying due to hidden fees or inflated premiums
- Receiving counterfeit or low-purity metals
- Falling for high-pressure tactics and bait-and-switch schemes
- Losing money through fraudulent operations
1. Check Credentials and Accreditation
Start by verifying the dealer’s credentials:
- Better Business Bureau (BBB) Rating: Look for an A+ rating and read reviews.
- Memberships: Reputable dealers are often members of industry associations like the Professional Numismatists Guild (PNG), Industry Council for Tangible Assets (ICTA), or American Numismatic Association (ANA).
- Licensing and Registration: Check that the dealer is licensed to operate in your state.
These certifications help ensure that the dealer follows ethical standards and regulatory requirements.
2. Transparency in Pricing
A reliable dealer will provide transparent pricing that includes:
- Spot Price vs. Premium: Clear breakdown between the metal’s spot price and the dealer’s markup.
- No Hidden Fees: Beware of unexpected shipping, storage, or commission charges.
Red Flag:
If the dealer won’t explain their pricing structure clearly, walk away.
3. Positive Customer Reviews and Testimonials
Check for reviews across multiple platforms:
- Trustpilot
- Google Reviews
- BBB Complaints Section
- Reddit or Investor Forums
Look for patterns in complaints or praise. A single bad review may not be a dealbreaker, but consistent issues with delivery times, pricing, or customer service should raise concerns.
4. Secure Payment and Delivery Methods
Trustworthy dealers offer multiple secure payment options:
- Bank transfers
- Credit/debit cards
- Checks
- Crypto (with reputable processors)
Shipping Protocols:
- Fully insured deliveries
- Tracking numbers provided
- Signature confirmation upon delivery
Red Flag:
If a dealer insists on unusual payment methods like gift cards or wire transfers to unverified accounts, it’s likely a scam.
5. Clear Return and Buyback Policies
Professional dealers will offer a clear and fair return policy, particularly on bullion products.
- Returns: Typically allowed within 7–30 days for unopened items
- Buybacks: Ensure the dealer offers a buyback program with competitive pricing
Avoid dealers who do not support returns or have vague policies buried in fine print.
6. Product Authenticity and Documentation
Trusted dealers provide proof of authenticity, such as:
- Assay certificates for bars
- Sealed packaging from mints
- Itemized receipts with product specifications
For IRA-eligible metals, documentation should also confirm IRS compliance.
7. Avoid High-Pressure Sales Tactics
Be cautious of aggressive salespeople who:
- Push you to act “before the price jumps”
- Recommend obscure or overpriced coins
- Discourage you from doing your own research
A reputable dealer will educate and guide—not pressure—you into a sale.
8. Verify Their Inventory and Storage Options
Dealers who actually own their inventory tend to be more credible than those operating on consignment.
Also check if they offer:
- Home delivery
- Storage in IRS-approved depositories
- Custodial services for IRAs
The more flexible and transparent the dealer is about storage and inventory, the better.
9. Website Security and Online Presence
If you’re buying online, ensure the dealer’s website is:
- SSL-secured (look for “https” in the URL)
- Professionally designed and easy to navigate
- Equipped with live customer support or contact details
10. Start Small and Test the Waters
If you’re unsure about a dealer, place a small test order first. Monitor the process from purchase to delivery. This gives you a risk-controlled way to evaluate their reliability.
Conclusion
Finding a trustworthy precious metals dealer doesn’t have to be overwhelming. With a little due diligence and attention to red flags, you can confidently buy gold or silver and enjoy peace of mind. Always verify credentials, read the fine print, and take your time before committing large sums.
Your gold investment is only as good as the source you buy it from. Choose wisely, and you’ll enjoy both the safety and the rewards of precious metals ownership for years to come.