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Home >> Why Buy Gold & Silver Coins, Bars & Investments on Ebay?

Author: Gold Why Webmaster
Updated: July, 2011
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If it's your first time buying gold or silver bullion, I highly recommend starting out with a well known gold shop. With a full service gold store such as Blanchard & Company, you will get a high level of customer service and the confidence that your gold is authentic. Buying gold bullion coins your first time can be a little intimidating. Why not buy from a very well respected store to make the whole process easier? (As an aside, buying gold is really easy and there is no reason to be intimidated at all.) Now, let's say you have bought gold at least one time before. You're a more seasoned gold investor. Then, it's time to consider buying gold and silver investments on Ebay. Ebay offers a goldmine of opportunity if you are patient and know what you're doing. It's time to make some great investments in gold and silver coins, bars, and bullion. NEW: When you're done reading this article, I also recommend checking out my brand new article about the eBay Bullion Center which is perfect for new and seasoned bullion investors alike.

Ebay Is Perfect For The Small Time Gold Investor

Ebay has something great going for it: You can find a lot of great lower priced coins. What if you want to buy just one 1/10 gold bullion fractional coin. With the price of gold around $1,400 per ounce, there is definitely a shortage of gold coins these days. If you go to your local shop, you might not be able to find what you want. I personally cannot find fractional Krugerrands anymore. If I go to a larger full service dealer, they're going to want a larger purchase. So what am I supposed to do if I want to make a small purchase and not have to buy several ounces of $1,400 gold at a time? Ebay is a great solution. Ebay always has sellers who carry smaller fractional coins and specialize in smaller transactions. With low overhead, Ebay sellers can afford to specialize in small gold and silver coins that may not make economic sense for larger dealers. If you are a small time gold investor (or maybe a large time gold investor who wants to pick up a few smaller fractional coins), Ebay is the leader.

One of My Favorite Ebay Sellers

I have reviewed quite a few Ebay sellers on Gold Why over the years. Some of my reviews are actually outdated at this time because sellers come and go from Ebay. However, one has really lasted the test of time! That seller is, drum roll please, Pennies.com also known by their Ebay handle estates-by-weight. This awesome seller offers a variety of great wheat penny offers and I've really enjoyed making purchases from them over the years.

Reviews Are of Key Importance

Panning For Gold Nuggets
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Reviews come in many shapes and sizes. I have personally reviewed some eBay sellers on my site. Check out other gold sites too. I have a directory of gold sites. There are many sites out there who have reviews of their experiences on Ebay and it's worth your time to do the research up front and check them out. One word of advice: Look for authenticity in style and tone. Is the review well rounded? Is it overly biased? Is the review by the seller? The best reviews are unbiased (or biased as little as possible). How can you detect if the review is authentic? It's not that easy. You will need to use your best judgment. Also, in addition to reviews on websites, always check out the seller's feedback. It's important that previous buyers give positive feedback and reviews of the seller. I would not buy from sellers (especially when dealing with something as expensive as gold) unless they have a very high positive feedback rating. There are too many gold sellers out there to settle. Only buy gold from sellers who have high positive marks.

Sometimes It Is Too Good To Be True

Before you buy gold or silver, always know the spot price of gold. You should expect to pay no less than the spot price of gold for popular gold bullion coins and bars. If the item is selling for a lot less than the spot price of gold, that is a big red flag. Why? Ebay is a relatively efficient market these days, especially as gold becomes more and more popular. If an authentic coin is selling at a steep discount to spot, you can buy it and sell it back to someone else for spot price and get an immediate profit (this is called arbitrage). In an efficient market, arbitrage should not happen. If you see a steep discount and it looks to good to be true, it probably is. Proceed with caution in that case.

High Volume Gold Dealers

I recommend filtering for volume. Check out the sellers who have done several hundred gold sales or more. These are the gold bullion sellers you can trust assuming they also have a high positive feedback score. Volume indicates that they have been in the business for a while and must be doing something right. You will always end up paying a premium when you buy from a high volume seller. It's always worth it. Let's take a simple example. You buy a 1/10 ounce gold bullion American Eagle from a new seller. You get a super deal and only pay $100. Now, let's say you buy the same coin but pay $120 from a power seller. Let's say the first one ends up to be a fake and the second is real. You pay an extra $20 but isn't that better than getting something worth $0 with your hard earned investment dollars? I always go with the high volume sellers.

Pay Pal Offers Insurance

If you buy on Ebay using Pay Pal, your item may be insured meaning you get your money back if it never ships or is a fake. You can learn more about Pay Pal's insurance here. This helps with peace of mind and I would make sure your auction is covered. Another way to get insurance and guarantee peace of mind: Ask the seller to prove the authenticity of their gold. Maybe they can provide you of a receipt from when they bought the gold. In general, it's good to keep receipts and keep track of your purchases so you can prove their authenticity.

Where Should I Start?

Ready to buy some gold and silver bullion coins and bars on Ebay? Not sure where to start? One easy starting point is the Ebay store at the top of this page. Also, following are some of my favorite Ebay search queries:

To close out, I must say I love Ebay. It's a great place to find some really great coins and bargains that you simply cannot find elsewhere. Are you a silver art bar collector? You can find art bars unavailable elsewhere on Ebay. Ebay is great and I recommend it to you. Can things go wrong on Ebay? The answer is yes, if you don't know what you're doing. Follow the tips in this article and you will be off to a super start protecting your hard earned investment dollars and making wise investments in gold and silver on Ebay. Have fun!

NEW: I also recommend checking out my brand new article about the eBay Bullion Center. eBay's brand new Bullion Center is absolutely awesome and is just one more reason to buy gold, silver, and copper bullion on eBay.

New Tips From Gold Why Readers

I work really long hours on this site, oftentimes late at night at the expense of sleep. One of the greatest payoffs of my investment in this site are the wonderful emails I receive from all of you. I really appreciate all of the ideas, tips, and kind words - it means a lot to me! Below, I'm happy be to updating this article with tips that Steve sent me recently. Steve, thanks for the great tips:

"Re. Ebay, it's important to do plenty of research and learn about the going rates well before buying anything. Ebay is a great place, but just like a market, with its share of mugs, crooks, honest people etc. I'm a (removed by Gold Why) living in (removed by Gold Why) and bought my first two coins at a great gold shop just over the border in (removed by Gold Why). I consult their online price list regularly. What I find amazing is that there are people on Ebay who sell gold coins for far more than they're worth. There are obviously plenty of naive buyers around! On the other hand, there are some real bargains to be had, especially if you spend time following auctions on other Ebay sites. I currently monitor Ebay in the UK, Italy, Germany and Switzerland and only wish I had more funds available to take advantage!" - Steve

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