Choosing a Gold Trading Company
Americans have many choices when it comes to selecting a gold trading company. Unfortunately, many people do not know what to look for in a gold trading company, so as a public service, we have provided some key questions to ask when selecting a company, as well as some background to go with each question.
1. Is your company a member of the Better Business Bureau?
There is no reason to do business with a company that is not a member of the Better Business Bureau (BBB). You should also investigate the company’s rating with the Better Business Bureau to determine how they have treated customers in the past. Ideally, you only want to deal with companies who have earned the coveted A+ rating from the BBB.
2. How long have your been in business?
It is not necessary for a company to have been in business for 50 years in order for it to be reputable, but you probably should not do business with a company that has only been trading for a year or two either. Since the price of gold really began its bull market in late 2001, many new gold trading firms have popped up almost overnight. Some are reputable, some are not. It is best to do business with companies who have been around in good times and bad times.
3. How committed is your company to client education?
You should only do business with companies that seek to educate their clients both over the telephone and through other basic methods. You can usually determine the level of commitment to client education by examining the company’s web site and speaking at length with one of their representatives. If the company’s web site is sparse in terms of basic information on gold, you should probably look elsewhere. If the company’s representative seems willing to patiently speak with you and answer your questions, that is a good sign. But if the company’s representative seems impatient or eager to get off of the telephone, rather than spending the time to talk to you, you should cross that company off of your list.
4. How does your company keep its clients apprised of current market trends and events?
Once you start doing business with a gold trading firm, it is comforting to know that the firm and its representatives will be there to keep you abreast of the latest market developments. You don’t want to learn of trends after they occur and you don’t want to be blindsided by any unpleasant surprises. A company should keep you informed in various ways, some personal and some not. Your primary source of market intelligence at any gold company should be your representative. That person should be accessible to you on a day-to-day basis and should take the initiative in staying in touch with you and providing information without your having to ask for it. But the company itself should also stay in touch with you as well. In this day and age, companies should provide the latest market updates via email, the company web site and via newsletters sent by the U.S. Postal Service. If a company does not have an e-letter, a newsletter or a frequently updated web site, you should probably bring your business elsewhere.
5. Does your company provide banking, legal and accounting references?
Any gold company should readily share point of contact information with their banking, legal and accounting contacts. Firms that are not willing to provide this information often have something to hide. Any respectable firm has good relations with their bank, lawyers and accountants.