These decisions work together, not as a rigid sequence. Your storage plan can affect the product you choose, and the resale terms matter before you commit to a purchase. If you are still deciding between outright ownership and an IRA, start with our direct-purchase-vs-IRA guide.
1. What metal and form should you buy?
For most buyers, recognised sovereign bullion coins and bars from established refiners. They price close to spot, any dealer can identify them, and reselling does not require finding a specialist buyer.
Recognition is the property that matters, and it is easy to underrate until you try to sell. A coin from a sovereign mint such as the United States Mint's American Eagle program, or a bar from an established refiner is easier for a buyer to identify than an unfamiliar private issue. The LBMA Good Delivery system provides a reference for accredited refiners; it does not certify every retail bar or replace verification of the specific product.
Spot is the market reference price; the premium is the amount charged above it for the product. Bullion is metal valued primarily for its precious-metal content. The glossary covers these terms in more detail.
Coins or bars?
Coins divide more easily and are the simplest thing to sell in small pieces. Bars generally cost less per ounce as size increases, at the price of selling in larger units. The comparison is worked through at gold bars versus coins, and the product ranges themselves are at gold and silver.
Gold or silver?
Gold holds far more value per unit of space, which makes it cheaper to store and ship for a given amount of money. Silver costs less per coin and is easier to buy incrementally, but a comparable dollar amount occupies many times the volume, and the price moves more sharply in both directions because industrial demand is a large part of the market. Neither is the correct answer for everyone, and we do not tell clients that either one is.
What about higher-premium coins?
Higher-premium coins may appeal to collectors, but they need a different comparison from standard bullion: the extra premium, the likely buyers and the resale bid. They are not required for privacy or protection from confiscation. Read proof coins vs. bullion: premiums and resale value to compare the trade-offs, and celebrity endorsements and gold dealer pricing for the economics behind the pitch.
2. Where should you buy, and how do you check the dealer?
Choose a seller whose business identity you can verify and whose product, pricing and sale terms are clear in writing. Compare the available purchasing routes and the support each provides. A dealer's ability to explain authentication, delivery and eventual resale is more useful than an endorsement alone.
Buyers may encounter mint-direct products, dealers and open marketplaces. Availability differs by mint and product; do not assume a mint sells every bullion issue directly to the public. With a marketplace purchase, check the seller, authentication and return terms. A dealer can help with product selection and a later sale, but those services and prices still need comparison.
For a first purchase, ask each seller what documentation accompanies the metal and how a later sale would work. Compare those answers alongside the price rather than choosing on price alone.
How do you check the dealer before sending money?
Confirm the business identity and contact details independently. Read the written quote, buyback terms and cancellation policy. Before wiring funds, call a number you found independently and confirm the payment instructions; email instructions alone are not sufficient verification.
Our ten questions to ask a dealer can help you compare answers. If a sales conversation introduces pressure or promises of certain outcomes, consult the specific examples in gold IRA scams and red flags. Reviews can be one input, but they do not replace checking the written terms. We explain Dormy's approach at why we do not advertise reviews.
3. What should the written quote include?
A usable quote shows the spot price used, the premium, the quantity, the total, and the time it was struck. What determines your real cost is the spread: the gap between that total and what the same dealer would pay you for the identical item at the same moment.
Premium alone is not the full comparison. Two dealers can advertise the same premium and deliver different totals through the spot reference, the quantity break, or a fee applied later. Compare totals per ounce, and then ask the buyback question.
The arithmetic, with worked examples, is at how to read a quote. How pricing works at Dormy specifically, including that quotes are time-stamped and valid for a short window, is at pricing.
Confirm the quote's expiration and any delivery, storage or other charges not included in the metal total. An indicative buyback price is a comparison at that moment, not a guarantee of the price you will receive when you eventually sell.
Is sales tax included in the quote?
Sales tax treatment varies by state and transaction. Confirm whether it applies and is included in the quoted total; ask a qualified professional about your circumstances. The broader federal treatment of collectibles gains is set out in 26 U.S.C. 1(h), but that does not determine the sales tax on a purchase.
4. How do you authorise and fund the purchase?
Before authorising an order, confirm the product, quantity, price, payment arrangements and the point at which the trade becomes binding. Dealers' procedures differ. At Dormy, the recorded compliance call authorises the transaction; Dormy places it directly afterward, and the price locks on placement, not when an indicative quote is issued.
How does this work at Dormy?
New clients must have cleared funds before Dormy places a purchase. Existing clients with an account may, by arrangement for that order, be given a few days to cover it. Confirm any arrangement before authorising the order; it is not a universal payment extension.
On the recorded call, the compliance officer confirms the quantity and the stated price or better: that price or lower for a purchase, or that price or higher for a sale. Dormy places the transaction directly afterward. Once placed, the trade is locked and cannot be cancelled; an agreed later payment does not reset its price. A copy of the recording is available for your records.
Dormy does not trade without your authorisation. The full terms are at our orders and buyback policy, with the engagement explained at how it works. Confirm payment instructions independently before sending funds.
5. Should the metal be delivered or stored?
For outright-owned metal, compare personal possession with depository storage before purchasing. Delivery brings security and insurance responsibilities; storage introduces provider charges and contractual terms. Confirm ownership records, insurance coverage and access rather than relying on a label alone. IRA-held metal requires separate custodian-approved arrangements, not ordinary personal storage.
Decide this before you buy, because it affects what is sensible to buy. Large quantities of silver delivered to a house are a genuine logistical problem, both in volume and in what a homeowner's policy will actually cover for precious metals, which is usually far less than owners assume.
Storage arrangements, how accounts are titled, and what allocated holding means are at private storage and delivery. If the metal will eventually pass to family, how it is titled matters as much as where it sits, which is the subject of how physical metal is held.
One boundary worth restating: this choice is yours only for metal you own outright. Metal inside an IRA has to be held by a custodian at an approved depository, and the home-storage version of that pitch is dismantled at the home storage myth.
6. How will you sell it later?
Plan the sale before buying: ask for written buyback terms and an indicative bid for the exact product. Keep the purchase and ownership records. When you are ready to sell, compare current offers and confirm testing, shipping, insurance and quote conditions; today's indication does not lock a future resale price.
Your sale proceeds depend on the product bid at the time, not just the spot price. A rise in spot does not automatically recover the purchase premium and ownership costs. Products with a narrower resale market may need a specialist buyer, so consider this when choosing between bullion and collectible coins. When the time comes, the mechanics are covered in how to sell gold bars.
Dormy buys metals purchased elsewhere as well as products we have sold, and specializes in larger transactions. Outside a depository, the client is responsible for shipping and insurance. Dormy receives and tests the metal, then sends a written quote; if accepted, the recorded compliance call locks the trade. Depository-held metal involves no shipping. The terms are written out at our orders and buyback policy, and the broader standards we hold ourselves to are at why Dormy is different.
Keep every invoice, serial number, and assay certificate, plus every custodian confirmation and depository statement when an account is involved. Documentation is the second half of the asset: keep originals findable and digital copies accessible to the person who may eventually help manage or sell the holding.
What should you check before committing?
Review the exact product and quantity, the complete quote, payment instructions, delivery or storage terms, and the sale conditions. Keep the documents together. If you are still considering whether metal belongs in your plans at all, read should you own gold before moving ahead.
Where can you verify product details?
Compare the mint or refiner's specifications with the exact product on the quote: metal content, weight, fineness and any identifying marks. Refiner accreditation is useful background, but it is not evidence that an individual bar is authentic. Our guide to verifying a gold bar explains the practical checks.
If you would like to compare product sizes, quote details or storage arrangements for a purchase, speak with a specialist.
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