Why You Shouldn't Buy Gold from Walmart

The world's largest retailer Walmart is a fine place to shop, but it's not the best place to buy precious metals. Since Walmart has started selling gold and silver bullion, it has been reminiscent of the news that Costco is selling gold and silver. Despite the media buzz, there are major drawbacks to buying your metals from these companies.

This article will explain why it's a bad idea to buy precious metals from Walmart.

Walmart is now selling precious metals on its website.

Reasons Not to Buy Gold and Silver from Walmart

It's worth noting that Walmart does offer reasonable costs for shipping or delivery. The quality of their gold and silver is also fine. The bullion products are real and come from reputable sources such as PAMP Suisse and the U.S. Mint.

Having said that, here are the main reasons you should avoid buying your precious metals from them.

1. You Can't Return Gold or Silver to Walmart

This is the biggest point of emphasis. There are no returns accepted when you buy precious metals from Walmart. Even worse, they won't buy back your metals, either.

Basically all other professional bullion dealers and companies that specialize in precious metals operate a two-way market. They will always buy your silver or gold—so long as it is of sufficient purity—in addition to selling it to you.

Buying back metals is an important part of the business model of a gold dealer. It's an industry standard that consumers benefit from. You can't do that at Walmart (for their bullion products, at least). This is also why it's especially important to buy precious metals from someone who can help educate you on the market. (More on that in reason #3 below.)

2. You Won't Get the Best Prices

Let's preface this point by saying that Walmart does at least offer a solid selection of different gold and silver products to choose from. In terms of variety, they do a good job.

However, Walmart's pricing on precious metals is not the lowest. In fact, relative to the competition, they charge an additional 1.5% premium on gold bars and similar generic bullion products. If you shop around and compare prices, you will easily find better deals for the same items at lower prices.

3. Walmart Lacks Expertise in Precious Metals

Most employees at Walmart won't be able to tell you much about the gold and silver bullion being sold. They won't be able to make any recommendations about the differences between products or discuss trends in the metals markets. In short, they can't do much to assist in your shopping experience.

The ability to consult knowledgeable specialists is crucial in a niche industry such as precious metals. Professional metals dealers can provide expert advice and educate their clients on the nuances of the market. By contrast, Walmart is a generalist retailer.

The importance of that distinction can't be overstated. When it comes to buying silver and gold, mistakes that cost you money are very common if you don't have the right expertise and educational resources to guide you.

Walmart carries American Gold Eagle coins and PAMP Suisse gold bars.

Why Is Walmart Selling Gold and Silver Bullion?

The obvious answer here is: because they can make a profit. That much is indisputable. But why now?

Gold is gradually re-entering the public consciousness in the West after decades of being treated like a "pet rock." The fact that you can walk into a Walmart store and pick up a silver bar or gold coin seems to be a sign of the times. In some sense, Walmart is jumping on the bandwagon after the metals prices have gone up so much in the past two years.

Whatever the reasons, there are far better options when you choose to purchase precious metals.

Read more advice on buying and selling precious metals from the expert authors at Gainesville Coins:

Why You Shouldn't Buy Costco Gold Bars

Why You Shouldn't Trust Coin Values on Reddit

Why You Can't Buy Gold or Silver at Spot Price

4 Reasons Why Dave Ramsey Is Wrong About Gold

How To Sell Silver Bars: Insider's Guide to Where, Why, and How