Just recently we, here at Gold Scams received a tip about a dealer called Discount Gold Brokers. I was immediately suspicious when I saw the cheesy look to the website and large bold text claiming it offered 0% above the dealer’s price. I’ve heard of discounts on premiums, but no premium at all? If that were true, how would the dealer make a living?
While roaming the site, I did in fact find that their prices were astoundingly low, and they weren’t necessarily pushing one product as a “loss leader”. With generic rounds, generic gold bars, and higher-valued rounds like the Maple Leaf and Buffalo at these prices, I can see why someone would stop and consider them as a bullion dealer.
BUT — Being an experienced gold & silver buyer, I know that not all dealers are honest. So, instead of being astonished and sucked in immediately by Discount Gold Brokers’ impeccable premiums, I dug deeper.
Here is what I found:
Did you catch it? The price drastically changed at check out because an astronomical shipping price was added in. $28.00 for shipping one ounce of silver?! I know for a fact that using the, sometimes inefficient, U.S. Postal Service is a far better deal than that. You can ship a small package for as low as $5.90 in some instances, even less for a smaller envelope. Many bullion dealers even offer shipping for free. So, unless Discount Gold Brokers’ shipping services also bring you a homemade apple pie and a swedish massage upon delivery, I don’t think this purchase is worth the while.
The website does list, in the fine print, that shipping has an initial charge of $28 for the first ounce, and it only increases by one dollar for every extra ounce added into your order. Even then, if you bought 100 ounces of silver that would cost you $127 in shipping! Last time I checked 100 ounces of silver does not fill an industrial size box.
All in all, the shipping is where Discount Gold Brokers will get you. Boy, these high-markup dealers are getting crafty…
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