Platinum bars are becoming an increasingly popular investment idea as public interest in the metal is picking up at an alarming rate. When it comes down to it, you essentially have two options when it comes to purchasing platinum; do it online or go to a brick and mortar shop. The purpose of this article is to explain the benefits as well as the plethora of downsides connected with buying platinum from a local brick and mortar shop.
Just as it is with just about anything else, the selection you get when going to a store is often much more limited than it is when you are shopping online. This applies to platinum as well in that it is much more cost-effective and beneficial to purchase from an online dealer of precious metals. The reason behind this is because online shops require you to travel nowhere and oftentimes have a much wider selection than that which you would find at a brick and mortar dealer.
Even if a brick and mortar dealer does have a wide selection, there is no saying that it will have the exact product you are looking for. This is incredibly inconvenient because if they dealer does not have what you are seeking it basically means you wasted a trip to the store. On the other hand, if an online dealer doesn’t have the product you are searching for, you can simply get off of that site and check out the next one. The fact of the matter is that it is much more effective to buy from the comfort of your own home than it is to drive all over your area just searching for a place to satisfy your metal needs.
Yet another disadvantage present when making purchases at a brick and mortar dealer that isn’t present when purchasing platinum bars online is that of sales tax. While states across the US have a varying degrees of sales tax, they exist in nearly every single state. When purchasing platinum from a brick and mortar dealer it is almost impossible to steer clear of sales tax. When you buy online, however, sales tax is never an issue as it doesn’t exist in the world of e-commerce.
Sales tax on smaller purchases of goods may not seem like too big of an inconvenience, but as the price of the item you are buying rises, so too does the amount of money you pay in sales tax. For example, if you were to make a purchase of platinum that totaled about $20,000 in a state that had 6% sales tax, you real total would be more like $21,200.
That is an increase in the price of over $1,000. A similar purchase online would force you to pay only $20,000 (barring other fees you incur at that particular site). Even in that hypothetical example it is clear to see just how much more beneficial it is to purchase online. Not only is it easier in regards to how little you have to travel, it is also a more cost-effective way to invest in platinum.