First bullion purchase due-diligence checklist

What to take away

• Verify the exact product, fine-metal content, total delivered price, and likely resale route.
• Research the business and salesperson through sources independent of the seller.
• Reject cold contact, guaranteed returns, hidden fees, financed purchases, and changed payment instructions.
• Prepare delivery, inspection, storage, insurance, and records before paying.
• A government-made coin does not create a government guarantee of the retail dealer.

Use this checklist before a first cash purchase of ordinary physical bullion. It does not cover rare-coin valuation, retirement-account rules, borrowing, futures, or pooled storage. Those need separate specialist review.

Purpose and limit

• Written reason for considering physical metal
• Maximum total amount including premium, tax, shipping, testing, and storage
• Essential spending and emergency reserves remain separate
• No borrowed money or margin in the transaction
• Expected holding period and possible early-cash need recorded
• Decision reviewed in the context of the full financial position

Product identity

• Metal named: gold, silver, platinum, or palladium
• Form named: coin, round, cast bar, or minted bar
• Mint or refiner identified
• Gross weight, fineness, and fine-metal content confirmed
• Dimensions, edge, design, hallmark, date, and denomination recorded where applicable
• Packaging, assay card, serial, certificate, or capsule described
• Bullion versus collectible premium made explicit
• Product has a plausible resale market in the intended location

Do not rely on a photo showing a similar item. Require the exact product and substitution rule in writing.

Dealer and salesperson

• Legal business name and physical address verified
• Ownership and named salesperson recorded
• Operating history researched beyond testimonials
• State consumer, attorney general, court, and complaint sources checked where relevant
• Relevant professional registration claims independently verified
• Written terms, privacy policy, return policy, and complaint route saved
• No pressure, secret method, guaranteed profit, or risk-free claim

The CFTC's page on checking registration and background says the Commodity Exchange Act generally requires derivatives intermediaries to register, points users to the NFA BASIC database for registration and disciplinary history, and warns that registration and a clean disciplinary record will not by themselves protect a buyer, because most scams involve unregistered entities, people, and products. A clean search does not certify a retail bullion dealer, and many ordinary physical-metal sellers are outside that registration system. Match the check to the seller's actual claim and activity.

Price and quote

• Spot source, bid or ask context, currency, unit, and timestamp saved
• Item price and premium per fine ounce calculated
• Quantity discount stated without a false reference price
• Card, wire, check, cash, storage, handling, shipping, and insurance fees itemized
• Sales or use tax treatment checked for the jurisdiction
• Total delivered cost calculated
• Current buyback formula or indicative quote requested
• Round-trip spread estimated without assuming future prices

Compare quotes only when product, quantity, payment method, delivery, and timing match. A lower headline price can become the higher delivered price after method-specific fees and shipping.

The U.S. Mint's bullion consumer-awareness page advises buyers to understand current market price and premiums, apply extra scrutiny to below-market offers, and research the dealer. It also explains that Mint bullion reaches the public through a distribution network, not a direct retail guarantee.

Payment controls

• Payee exactly matches the verified business
• Bank or wallet instructions confirmed through a known channel
• Payment method risks and protections understood
• No payment to a salesperson's personal account
• No last-minute routing change accepted without independent verification
• Receipt and order number generated immediately
• Identity documents shared only through a verified secure process

Wire transfers and some digital payments can be difficult to reverse. A discount should not override payee verification.

Delivery or pickup

• Dispatch window and cancellation conditions written
• Carrier, tracking, declared responsibility, and insurance explained
• Signature and absence procedure understood
• Outer package will not advertise contents
• Safe delivery location and timing arranged
• Pickup location, transport, receipt, and examination planned
• Procedure for delay, loss, damage, or wrong item saved

Receipt and inspection

• Sealed package photographed on all sides
• Unboxing recorded without exposing private labels publicly
• Quantity, product, packaging, and condition match invoice
• Scale and caliper are suitable, checked, and used correctly
• Weight and dimensions compared with authoritative specification
• Magnetism or other non-destructive checks used only within their limits
• Conflicting result triggers quarantine and qualified examination
• Return deadline preserved while questions are resolved

One passed home test does not prove composition. Do not cut, drill, acid-test, or damage a product without training, permission, and an understanding of return and resale effects.

Storage, insurance, and records

• Storage ready before delivery
• Access limited and succession addressed
• Insurance terms confirmed in writing
• Invoice, payment, seller, serial, assay, photos, test, and delivery records stored privately
• Record copy kept separately from the metal
• Tax-basis and future-sale records identified with a qualified adviser
• Periodic inventory and condition review scheduled

Common questions

Is an authorized purchaser list a list of recommended retail dealers?

No. Distribution status and a retail transaction are different. Research the actual seller and terms.

Should I buy below spot?

Treat an unexplained below-market offer as a reason for more scrutiny, not as proof of a bargain.

Is a magnetic test enough?

No. It can screen some materials but cannot establish full composition or authenticity by itself.

When should money move?

Only after product, price, payee, delivery, storage, and remedies are confirmed in writing.