What is the best and cheapest place to buy gold bars online?

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JackSprout

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I'm not here to debate whether buying physical gold is a smart idea or to argue about my friend’s way of thinking. Here’s the deal: my friend avoids banks, doesn’t use credit cards, and never shops online. When it comes to saving, their only options are keeping cash in a safe or storing gold. Gold seems like it would hold its value better against inflation than cash.

The problem is, I don’t know much about how to buy physical gold. If ordering from places like APMEX isn’t an option, what are the alternatives? I figure jewelers or pawn shops would probably overcharge, adding something like 15% on top of the spot price. Buying from a private seller feels risky too—you might get scammed with lower-quality gold or worse, get robbed. Any suggestions?
 
That's the cost of choosing to live outside the traditional system.
 
15% isn’t much when you consider the risks. Imagine your friend buys a gold bar stamped with ‘Credit Suisse,’ only to find out later that it’s just gold-plated lead, worth little more than scrap metal. To avoid this, at the very least, bring a magnet when buying gold in person. Fake silver coins are often steel-cored with thick silver plating, and while gold fakes may use different methods, a magnet is still a good precaution.

Also, know the expected weight of the item and bring an accurate scale to check for yourself.
 
Look for coin shops, but make sure they have a solid reputation.

Prices can vary, but in my area, most shops were charging an additional $60-$80 above the current gold spot price for coins like the American Gold Eagle. Coins like Krugerrands were usually cheaper. It’s a good idea to call ahead and confirm prices. I haven’t checked recently, so availability might have changed.

I’d stay away from pawn shops—they’re often sketchy. I bought a gold coin from one years ago, and it turned out to be fake. Luckily, I got my money back because it still contained gold, but scams like that are common. Sometimes, they sell coins that are worth the gold value but lack any collector value.

You also need to watch out for counterfeits. Websites like Alibaba (essentially the Amazon of China) are full of fake American gold and silver coins. It’s surprising that nothing has been done to stop them, but these fakes are being bought and resold. Counterfeit bars are a thing too—people have opened bars only to find cheaper metals underneath the gold coating.

A reputable coin shop is usually a safer bet. They’re less likely to sell fakes because their reputation is on the line, and selling counterfeits could ruin their business. That said, you should still do your due diligence.

There are tools you can get to help, like a plastic balance tool designed to test coins by their weight and dimensions. Here’s an example:

You can also use acid testing kits to check gold purity, but these are better suited for items you plan to melt down.
 
In my town, there are two shops that sell gold coins like American Eagles, Krugerrands, and Maple Leafs. They also offer silver coins, including American Eagles and some more generic options. Everything they sell is brand new.

These stores also deal in other items like old coins, jewelry, and even firearms.

The biggest challenge, though, is figuring out how to store your gold securely. A relative of mine had a few thousand dollars’ worth of gold stolen right out of her safe—by one of her own kids, no less.
 
A year or two ago, I thought about selling some gold. I didn’t have much, though, so I emailed several local shops since I wanted to avoid the hassle of shipping. After comparing prices and finding the best offer, I ended up changing my mind. The guy I spoke with was willing to work with me, but since it wasn’t a large amount, I decided to just hold onto it.

If you’re looking to buy, I’d recommend checking out local coin shops and asking about their prices. Alternatively, your friend could give you the cash, and you could place an order through APMEX or a similar service.
 
What about JM Bullion? Are they reliable for purchasing gold online?
 
Your friend might not realize that buying and selling gold with cash at coin shops has to be reported to the IRS.
 
If buying online isn't an option, local coin shops and jewelry stores that sell bullion are your best bet. Personally, I'd recommend going for coins instead of bars, since coins have set measurements for weight, diameter, thickness, and design. If the metal isn’t right, it’s unlikely that all of those measurements would be correct, but they should be fairly close. There are even apps that use your phone to test the sound a coin makes when tapped, or you can check if the store has a Sigma metal tester to verify the authenticity of what you're buying.

To get a sense of current prices, check out websites like SD Bullion, JM Bullion, and APMEX. If you can find a good price close to the lowest, you're doing well. Generally, in-store prices are higher than online prices, but of these three, APMEX tends to be the most expensive, and SD Bullion usually has the best deals. It’s also useful to know what kind of coins your local shops usually carry. Their stock may be limited since gold can lose value quickly if it just sits around. They might also be able to order specific coins for you from their supplier.
 
Blonxo7! said:
Your friend might not realize that buying and selling gold with cash at coin shops has to be reported to the IRS.
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Try to keep your transactions under $10K each. Also, space them out by a few days, or even longer if possible. Keep in mind, the CTR isn't sent to the IRS, but to FINCEN.
 
I think checking out local coin shops is a good idea. If he's in a bigger city, there might also be a coin show where he can meet several dealers in one place.
 
PingFong62 said:
Try to keep your transactions under $10K each. Also, space them out by a few days, or even longer if possible. Keep in mind, the CTR isn't sent to the IRS, but to FINCEN.
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A good way to go from 'I pay in cash to keep my business private' to actually committing illegal money structuring.
 
Structuring is when someone intentionally breaks up cash transactions to avoid triggering a report for a large transaction. I think structuring is illegal on its own, even if the money being used was earned legally.
PingFong62 said:
Try to keep your transactions under $10K each. Also, space them out by a few days, or even longer if possible. Keep in mind, the CTR isn't sent to the IRS, but to FINCEN.
Click to expand...
 
PingFong62 said:
Try to keep your transactions under $10K each. Also, space them out by a few days, or even longer if possible. Keep in mind, the CTR isn't sent to the IRS, but to FINCEN.
Click to expand...
When he makes a purchase, Form 8300 gets sent to FINCEN. When he sells, the IRS receives a 1099.

And as others have mentioned, structuring is illegal.
 
I never suggested structuring. If he needs $5,000 a month, then just buy or sell that amount. Most people don't transfer $10,000 at once unless it's for a big purchase.
 
JackSprout said:
I figure jewelers or pawn shops would probably overcharge, adding something like 15% on top of the spot price. Buying from a private seller feels risky too—you might get scammed with lower-quality gold or worse, get robbed. Any suggestions?
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I don't buy or sell gold. But I would expect anyplace that buys and sells gold, a price varying commodity, to charge something extra for the risk they are taking. If they weren't, they aren't making money and soon out of business.
 
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