Monthly Archives: November 2020

Gold bars close-up with serial numbers on them
The second most commonly asked question we receive at Bullion Trading is “how do I know if it’s real?” This is a legitimate concern in this business. Scams in the gold and silver business have been around since ancient times. In 2012, there was a counterfeiting scandal right here in the Diamond District that heightened customer apprehension about being sold fakes. A dealer was sold hollowed-out gold bars that were filled with tungsten, which is the substance closest in density to gold (to the trained expert, it still falls significantly short). When another customer came in to buy gold, he ended up being sold the counterfeits that were in stock. The customer was reimbursed by the dealer and the media […]

“How Do I Know If It’s Real?”

The New York City skyline
Buying gold online is easy and convenient. You choose what you want to buy, add it to your shopping cart, enter your credit card information and check out, all from the comfort of your phone or computer. This is not always as simple as it sounds. With high-ticket precious metals, you may not want to compromise the quality of your buying experience for convenience.  Gold prices are dependent on constantly shifting, complex economic factors. Online dealers have to concern themselves with price fluctuations very differently than dealers with physical stores. When you buy gold in person, you are buying the gold for the price that it is at that time. When you buy online, the price is what the price of gold is at the […]

Buying and Selling Online Vs. Buying and Selling In Person

Two gold coins from Ancient Rome, depicting the head and the tail of the coin.
Gold has been counterfeited for as long as there’s been currency. The first incidence of gold counterfeiting is recorded as being in Lydia, Greece around 600BCE, which is the birthplace of the world’s first coin.  Then there’s the legend of the Greek physicist Archimedes and his water displacement experiments. He famously proved that a goldsmith had counterfeited the gold crown of King Hieron II by submerging the crown in water and determining how much water was displaced. It was suspected that the goldsmith used silver for the crown and kept the gold for himself. Pure gold has a higher density than silver and displaces less water than silver because silver has a higher volume. So when he placed the crown […]

The History Of Gold Counterfeiting

gold bar
The most common question first time gold buyers ask is, “should I buy coins or bars?” The first thing to always keep in mind when deciding on buying coins or bars is that the melt value of the metal does not actually change depending on its form. An ounce of gold is going to have the same value across the board, whether it’s in the form of a coin or a bar.  Gold and silver coins are government-issued legal tender. In addition to their intrinsic value, there’s a value placed on them by governments that banks are legally required to exchange for readily-available funds. However, this value is always going to be lower than its intrinsic value, which is determined […]

Should I Buy Coins Or Bars?

price of gold bar
Gold has always been the go-to investment that people turn to during times of uncertainty. It doesn’t move with market prices and it’s unaffected by inflation. When stock prices are down, the value of gold is typically soaring. If you’re thinking about purchasing gold or other precious metals during this pandemic, here are a couple of things to consider: Gold is Less Volatile Precious metals like gold seem to be inversely related to the value of the US dollar. So when the dollar is down (like it is now), the value of gold is up. Because of this, during times of recession and uncertainty, gold and silver have typically been looked to as “safe havens”. It’s the currency that we […]

Should You Invest in Gold During COVID-19?

gold bars prices
Up until the election, The U.S. presidential race has been more of a distraction than a direct influence on the gold market but going forward expect the precious metal to be a winner no matter the outcome. For gold, the election isn’t a “blue versus red” competition between the Democrats and Republicans, says Frank Holmes, chief executive officer of U.S. Global Investors. It is a “push the gold button” event, he says. Let me explain in simple terms why gold is a buy no matter who wins. First there are a few things that you need to understand. Gold is priced all over the world in U.S. Dollars. Therefore, if anyone outside of the United States is considering buying gold […]

Post election and the price of gold

gold bullion dealer
The State of New Jersey imposes a 7% sales tax on all collectible commodities such as precious metals, bullion, tokens, medallions and any numismatic goods. This applies to online purchases.  This tax is collected on all purchases regardless of whether the vendor calculated it into the total.  Even if the vendor failed to include it in your total at checkout, you, the customer, are still responsible for paying it. It’s the law. You don’t want unpaid taxes to catch up with you. It’s best to get them out of the way upon making the purchase. Many people think sale taxes are imposed by the IRS but this is not true. Sales taxes are determined on a state-to-state basis.  It’s safe to […]

New Jersey Residents and The 7% Sales Tax on Precious ...