When purchasing precious metals from a dealer, it may not immediately occur to you to write a paper check. Though it may seem antiquated, in fact paying with a paper check is often the best way to buy precious metals. Paying with a check can mean lower prices on precious metals, though it can also result in slower transaction processing.

Relative Pricing

Paying via check may earn you a discount when compared with other payment methods, such as credit cards. Because of high fees to process credit card transactions, many precious metal dealers either charge an additional fee for such purchases, or offer a discount for buyers paying with other payment methods, such as a paper check. Paying with a check can save you as much as 5% off the purchase price of your coins or bullion.

If you are buying gold in person, don’t forget to bring your checkbook. Paper checks are also commonly accepted by many local gold bullion dealers. Be sure to check their policies. Some dealers will only accept particular types of checks, such as personal checks or cashier’s checks.

Others require that the check is sent within a set amount of time. Some dealers require the check to be received within 3 days; this may require overnight postage. If the check is not received in time, your order may be recalculated based on the current price of gold, which can change the amount you owe.

Note that certain information such as an order number may need to be included in the Memo line of the check. Following these instructions can reduce the amount of time it takes to process your check, and ensure that you receive your precious metals as quickly as possible.

Processing Time

The downside of paying via check is that it is not instananeous. In fact, paper checks are typically the slowest method of paying for a precious metal purchase. If you’re in a hurry, consider a bank wire, which is a faster way of transferring funds from your checking account to the seller’s account.

How long will it take for the check to be processed? If you’re buying from an online precious metal dealer, it will take a few days for the check to be received through the mail. Then, there is a clearing period. Paper checks usually take around 5-10 banking days – which can mean more than two calendar weeks – for the funds to “clear” from your checking account to the seller’s.

Your products will not be sent until the funds have cleared. While you may find some sellers willing to send your purchase before the check clears, this is very uncommon when purchasing large amounts of precious metals; the seller will not want to risk having your check bounce after the coins have already been sent.

Is paying with a paper check right for you? If you’re willing to be patient, paying via check often makes sense. It also makes sense for investors who are looking to get the best prices on gold and silver coins and bullion. On the other hand, if you’re not overly concerned with price, or want your precious metals in-hand as quickly as possible, you may be better off paying with another method such as bank wire.