Main Street is a dying branch of the retail tree. While this upsets many people, it is a natural progression and we’re all better for it. The main business streets of cities and towns have their benefits, but they are few, and far outweighed by the negatives. Never has this been more evident than with bullion dealers, because while you can see your potential purchases up close and even touch them at the local dealer, these are the only benefits. The negatives are far greater.
The first major issue with local purchases is that they are often subject to sales tax. There are only a few states that do not have taxes and a few more that have tax exemptions. But, when you buy online, there are no taxes, and no need to search for exemptions. Everything you buy is exempt. A dealer in Michigan, for instance, has to appeal to buyers in that state, but an online dealer can base itself in any tax-free state or country, abide by those laws and appeal to buyers everywhere from Anchorage to Orlando.
It’s not just about taxes either because, even when you take them off the bill, you’ll find that prices are significantly lower online. There are a couple of reasons for that. The first is that a local dealer needs to pay for brick-and-mortar and keep the doors open and lights on. It also needs to create space for all of the products it sells. The online dealer simply sells directly from a warehouse, cutting out the middleman, and saving a small fortune.
Competition also comes into it. There are many online dealers to choose from, all shipping to your address. They know this, so they compete with one another, constantly driving prices down. We know this because we do it ourselves — we’re always trying to sell for the lowest price possible. Local dealers often have a monopoly in their town or city, so they can sell for what they want and still find buyers.
Variety is also important. As mentioned above, a local dealer is limited by space. Because of this, they can’t afford to display items that will sit there for a long time and not sell. An online dealer, however, does not have an issue with storing items for a long time, so they can afford to stock rare items that appeal to only a handful of buyers.
You may argue that the cost of shipping and handling will negate any savings you make, but this is simply not true. The home delivery industry is just as competitive as the bullion sector, just as willing to lower their prices. Because of this, it is very easy to find a delivery company that can travel long distances and deliver product right to your door, all for a marginal price.
To buy from a local dealer, you have to make time to drive to the store. People will see you enter; they will see you leave. If you store precious metals at home, you understand the importance of not telling anyone but you may very well be seen at a gold dealer’s. Online, this is not an issue. At GoldBroker, we respect your privacy and understand the importance of being discreet. All packages are unmarked and unrecognizable. At no point will anyone, delivery drivers included, know what you have bought.