Gold Dealers

Your humble scribe can without a doubt say that he has never met a gold dealer. This is someone who makes his or her money selling gold. Gold dealers are out and about, but it’s not the type of profession one runs across, like say a teacher, architect or lawyer. One of the great misconceptions surrounding gold dealers is they make their money when the price of gold increases, and in turn lose it when gold prices plummet. This sounds intuitive, but far from the truth.

At their core gold dealers are a risk averse bunch. The metals market can be quite volatile, so dealers do not generally speculate on future spot prices. Gold dealers work with stock inventory (shipping and receiving) or will broker sales and collaborate with larger wholesalers on the shipping end. For those that work with inventory, having gold on hand is great, but what happens if the market price drops? A dealer might have bought at $50 one month ago, but today the price is $40, and the same dealer needs to sell.

These situations are common and to offset price swings dealers will hedge their bets in the markets. The physical purchase of gold is always completed by the dealer, but they will then “short” the price of gold in the markets, basically betting that the price will decrease. Going back to the $50 example, if the dealer bought physical gold at $50 and the price then increases by $50, he or she will make a $50 profit via the sale. But at the same time the dealer has shorted the gold price on the market to protect him or herself in the event the price went down. Dealers are always making money on one end (the physical sale or short position in the market) and losing on the other (the same physical sale or short position in the market).

The system is complex and certainly not for novices. There are several highly respected gold dealers throughout the U.S. Silver Gold Bull sells, as you can imagine, more than simply gold. Dealing in copper, palladium, platinum, silver, and of course gold, these are true veterans in the game who know their stuff and are exceptional sales professionals. Their website is highly developed with an automated spot alert, communicating up-to-the-minute data on prices throughout the day.

If you want to go where the stars are, Regal Assets is your place. Multiple celebrities have endorsed Regal Assets which has in turn bumped its profile over the years considerably. A cool feature at Regal is the ability to open a gold IRA. Within this IRA you can add Bitcoin and similar crypto-currencies all under the guidance of the Regal investment team.

Similar outfits exist throughout the U.S., a simple Google search will get you there. But do take heed to potential frauds, they are ever-present. Happy gold hunting!