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\u00a0 \u00a0 \u00a0To answer this question, an investor must ask, \u201cWhat benefits do I receive when doing business with a coin shop?\u201d\u00a0 The biggest benefit to doing business with a coin shop is going to a physical location, looking at the merchandise before purchasing, and talking to a sales associate in person.\u00a0 Of these advantages, only one results in any kind of savings.\u00a0 When an investor can purchase gold and silver locally they are able to save money on shipping and insurance charges typically charged by online companies.<\/p>\n
Unfortunately, while there are a few advantages of buying from a coin shop in Houston there are far more disadvantages.\u00a0 First, coin shops by their very nature have large overhead.\u00a0 They have rent to pay, employees to pay, insurance to purchase, and the list goes on and on.\u00a0 As a result, coin shops in Houston are notorious for being extremely uncompetitive in their pricing.\u00a0 As an example, most coin shops in Houston currently sell American Silver Eagles<\/a> for $3.50-$5.50 over spot, while Lone Star Bullion<\/a> is selling them for $2.99-$3.49 over spot.\u00a0 On average, coin shops charge anywhere from 2-7% more for most of their gold and silver coins, bars, and other products.\u00a0 This is also true when they buy back from the public.\u00a0 Take the silver eagle<\/a> as an example again.\u00a0 Most coin shops are currently buying silver eagles back from the public for spot to $.50 over spot in comparison to Lone Star Bullion<\/a> which is buying them back for $1.25-$1.50, a difference of 2-3%!<\/p>\n Second, most coin shops in Houston require investors to show their drivers license and give additional private information beyond what the law requires.\u00a0 Often times they will record drivers license numbers and other personal information in connection with the transaction.\u00a0 When buying gold and silver in Houston, privacy has to be one of an investor\u2019s top concerns.<\/p>\n Third, most Houston coin shops simply seek to sell investors those products, which bring them the most commission.\u00a0 I have talked to countless investors who have purchased fractional gold and other products that were obviously sold purely because the commission is three to five times higher than any other gold or silver product.<\/p>\n Fourth, most Houston coin shops have absolutely no expertise when it come to economics, finance, or precious metals.\u00a0<\/a> Most coin shops simply can tell you prices and options, but not give you any strategic advice when it comes to determining whether you should buy gold or silver, what type of gold or silver to purchase, and how much you should buy.\u00a0 To most coin shops they view each client as a transaction, not as an investor who has specific goals they are trying to accomplish.<\/p>\n I have personally bought from, got quotes from or been to each of the major Houston coins shops and can say from personal experience that they do not have competitive prices, good customer service, appreciation of customer privacy, or a good understanding of economics or finance.<\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" \u00a0 \u00a0 \u00a0To answer this question, an investor must ask, \u201cWhat benefits do I receive when doing business with a coin shop?\u201d\u00a0 The biggest benefit to doing business with a coin shop is going to a physical location, looking at … Continue reading Disregard for Privacy<\/strong><\/span><\/h3>\n
Bad Recommendations<\/strong><\/span><\/h3>\n
No Expertise<\/strong><\/span><\/h3>\n