Lately, it feels like the economy is anything but certain. That's why many people are turning to gold bar investments to regain some control of their economic future. Unfortunately, this can come at a steep price.
Because of the high demand for gold, most places are selling their bars above the spot price. As such, many interested gold investors are considering alternative places to buy.
That's where eBay gold bars come into play. Many sellers on eBay do indeed offer gold bars. But can you trust the gold these sellers are offering? And how do you stay safe while shopping on the site?
In this guide, we'll be going over all of the eBay pros, cons, and buying considerations so you can decide if it's the right option for you.
The Pros of Buying Gold Bars on eBay
Perhaps one of the biggest pros of buying gold bars is the number of options available. Since 2015 eBay has blown up as a private gold marketplace. In addition to a wide variety of gold bars, you can also find potentially rare coins, jewelry, and other types of gold.
However, it's important to note that this selection will ebb and flow based on demand and sellers. All you need to do to find these products is a quick keyword search.
In addition, many people like the ease of use, convenience, and flexibility when it comes to payment methods. That being said, certain sellers will limit what payment options you can use.
Many people also claim that you can save money when shopping for gold bars on eBay. However, as we'll cover in another section this is a bit of a myth when it comes to gold.
The Cons of Buying Gold Bars on eBay
The main con of buying eBay gold bars is the potential to be scammed. There are a lot of scammers on eBay. This comes from the fact that anyone can become a seller on the platform.
Now getting scammed on eBay might not be a huge deal if you're buying cheap electronics or clothing. However, when you're purchasing an expensive item like a gold bar you have the potential to lose a lot.
The good news is that eBay does a fairly good job of weeding out most of the scammers. What's more, they also have some buyer protections in place. That being said, a good number of dishonest sellers still get through the system.
They'll often do this by claiming to sell a legitimate gold bar with low purity percentages. By the time you're able to verify the results of the gold bar, the seller will be long gone. There's also the issue of the apparent cost-saving potential of eBay.
Can You Save Money Buying Gold on eBay?
To understand why many people turn to eBay for gold bars we need to first understand spot price. The spot price of gold refers to the market price for the gold that is immediately delivered.
Now the price of gold by most sellers will typically exceed the spot price. Because of this, many new investors think they're getting the raw end of a deal. The reality is that the increased premium contains a lot of the costs required to get the gold to you.
This includes things like:
- Exploration expenses
- Mining rights and equipment
- Refinement costs
- Transportation
- Minting
- Insurance premiums
- Retail expenses
When you combine this with the high demand for gold, it's easy to see why the price of most sellers will exceed the spot price. So can you save a lot of money on eBay? The answer is most likely not.
See, the demand for gold isn't just high in the United States. This demand extends to almost every single country in the world. The sellers on eBay are not immune to this demand.
Most are private sellers who have already paid the premium on the gold they bought. As such, they're going to pass that cost on to you. As such, you're not going to see significant savings from buying gold bars on eBay.
And, if you do come across a deal that seems too good to be true, it likely is. Because anyone can sell on the platform it means there are lots of scammers. That's why you need to know how to stay safe when shopping on the site.
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Buying Considerations for eBay Gold Bars
As we mentioned, in many cases the cons of buying gold bars on eBay might outweigh the pros. However, if you're still set on using the online marketplace, there are some considerations that you should think about.
Specifically things like how to buy gold safely and avoid scams. In this section, we'll be going over some tips to ensure that you get what you pay for.
Only Go With Trusted Sellers
There are a variety of sellers from household names in the gold industry to complete unknowns. With the unknown seller, you're indeed more likely to find a good deal. However, this comes at the cost of safety.
These sellers with little to no credentials have a high potential of being scammers. Instead, if you're going to buy gold bars on eBay only go with well-known companies.
While it might cost you a little more it's much safer which will pay off both in terms of your precious metal investment and peace of mind.
Know What You're Looking For
It's important to know what type of gold bars you want before you begin shopping on eBay. That's because certain types of gold bars are better for investment purposes than others.
Generally, you can break gold bars down into two categories: cast bars and minted ingots. Cast bars are slightly rugged in appearance because they're made by pouring molten gold into molds.
Minted ingots are more official. They're cut from a large sheet of gold and then printed with designs and information. Because of their uniform nature, minted ingots are usually preferred for investment purposes.
However, the most important thing when it comes to gold bars is their purity and weight. To be considered investment-grade gold it must come with a purity of 99.99%. The weight of the gold will affect how much you pay for it.
It's also important to note that larger gold bars can be hard to store physically. As such, it can affect where you put your gold collection.
Use Your Credit Card When Buying
You want to make sure you use a credit card when purchasing gold bars off eBay. Specifically, you need one that provides a good deal of consumer protection against fraudulent online purchases.
Good credit cards will provide you with at least a one-hundred-twenty-day period to file a claim on your item. This will typically be enough time for you to get the item and authenticate its legitimacy.
Credit card companies are much better equipped to handle fraudulent claims. Sadly, the same isn't true for banks, PayPal, and debit cards. Since these options don't offer a chargeback it's going to require a lot more effort to get a refund.
And even then, there's no guarantee that they'll provide you with one. So make sure you do a bit of credit card research before you buy gold bars on eBay.
Familiarize Yourself With eBay's Seller Protection
The Buyer Protection policy at eBay provides another safety net against potential fraud. This starts with dispute resolution. If there's something wrong with your gold bar, you can open a dispute.
From there, eBay employees will reach out to both you and the seller to try and find a solution. There's also the eBay money-back guarantee. This claims that if your gold bar doesn't arrive, or it's not as described, the platform will give you your money back.
The platform does its best to help you. However, it's important to remember that they're working off limited information.
That means that not only do these resolutions take a while, but if they can't get a full picture there's a good chance they could deny your claim or side with the seller.
Check Seller Feedback
The eBay platform also provides a seller feedback section you can check out. This is invaluable for gold-buying individuals. That being said, there are ways to game the feedback section.
So just because you see a seller with a large amount of positive feedback doesn't necessarily mean you should trust it. Some sellers will use fake transactions to garner a lot of positive reviews.
You can check for this by doing a bit of research. Look deeper into the feedback section. Do you see a lot of repeated reviews? Are many of the reviews just one-word sentences?
If the answer is yes, there's a good chance they're fake. Feedback can be useful. However, make sure you're only using it as a guide. It in no way represents a guarantee that you can trust the seller.
Communicate With the Seller
Feedback isn't the only way to confirm the legitimacy of a seller on eBay. You can also reach out to them. Ask them questions about how they authenticate the gold bars. See if they have a return policy in place.
The seller's answer will give you a lot of insight into whether or not they're credible. If they can't verify the gold bar's authenticity, shop elsewhere. Similarly, pay attention to how long it takes them to respond.
If it takes days or even weeks to get an answer, this should be a red flag. It means it's going to be hard to get in touch with them if you have a problem with the order.
Test the Gold When You Receive It
It doesn't matter how authentic the gold looks when it arrives at your home. If you buy gold bars on eBay you'll want to test their purity and weight as soon as you can.
If you have an accurate scale you can immediately test the weight. However, we recommend taking it to a professional to get a more accurate assessment.
Remember that time is of the essence when testing. You want to get the results back before the claim window closes on your credit card.
Don't Buy Outside the U.S.
We're not saying there aren't legitimate gold sellers outside the United States. However, you are more likely to encounter potential scammers operating outside of U.S. jurisdiction.
There's another reason you should only shop with U.S. gold sellers on eBay: it makes the return process much easier. If a dispute does arise you won't need to send it back halfway across the world.
Where Else Can You Buy Gold?
When you buy gold on eBay you're buying from private sellers. This isn't the only place you can do this. Some people even turn to Craigslist, pawn shops, or Facebook Marketplace to find sellers.
However, all of these options represent a certain risk since it can be hard to verify. That's why we generally recommend purchasing from a licensed online retailer.
Not only do these providers offer a wider array of products, but there's a lot more transparency in terms of where the gold is coming from. Licensed retailers might come in the form of a large organization like the U.S. Gold Bureau.
Even Costco is selling gold bars these days. Regardless of where you buy from, just make sure you do your research first. You want to make sure that you're buying from a trusted source before you even start browsing.
Have More Questions? Check Out Our Free Precious Metals Investor Guide
We hope this guide helped you learn more about the pros and cons of eBay gold bars. Here at the U.S. Gold Bureau, we know that new investors tend to have a lot of questions about the precious metals they purchase.
This includes things like where to buy, but also how to get the most gold for their buck, and the different types of gold.
To answer your questions and give you an edge on the competition we made a free precious metals investor guide. Get it today to learn how to start investing in gold bars like a pro.
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byUnited States Gold Bureau