Buying Precious Coins and Metals in Colorado

by Grant HEnson

*The owners of this website may be paid to recommend some precious metals companies. The content on this website, including any positive reviews of these companies and other reviews, may not be neutral or independent.

Did you know that Colorado precious metals mines today produce about 322,000 ounces of gold and silver annually? Once refined, this mined gold and silver is supplied to different industries through bullion, coins, bars, jewelry, etc. 

One industry that benefits from this is the investment industry, which includes dealers and brokers who hold precious coins and metals, enabling investors to possess these assets in their purest form.

That said, this investment industry is enormous. A 2020 study revealed that 10.8% of Americans owned gold at that time. 

Yet, with the rising economic uncertainty, more people have added gold and other precious metals to their investment portfolios. Besides having a lasting physical appeal, these shiny metals maintain their value even when other assets decline in the market. 

This makes them an excellent hedge against inflation, ensuring your wealth is preserved for years to come. But is it a worthy investment for everyone? And how can you invest in these assets in Colorado? Let's explore this in this detailed guide.

Why Invest in Precious Coins and Metals? 

When everything else seems to be fluctuating, investing in precious metals is a wise decision to secure your financial future over the long run. Why are precious metals a good investment? 

There are multiple benefits of adding these to your investment portfolio.

Hedge Against Inflation

During times of economic difficulty (like during the COVID-19 outbreak), the Fed tends to print money, which causes the currency to lose value and drives up the value of metals like gold and silver.

Because of this, many Americans utilize precious metals as a "hedge" against inflation, protecting their purchasing power for the future as the dollar's value continues to fall. 


One of the most critical financial strategies is diversifying your savings. In today's highly interconnected and globalized world, it’s not rare to witness sudden and dramatic fluctuations in your account balance. 

Hence, smart investors prefer not to put all their eggs in one basket and  expand their investment portfolio with precious metals. 

This means that having precious metals can help minimize losses when other investments aren’t doing well, which helps keep your overall investment strategy balanced.


The privacy offered by precious metals is unmatched by many other asset classes. Ownership of your precious metals is entirely private when you pay cash for home delivery. 

As a result, neither the government, a bank, nor any other financial institution needs to track your portfolio because you own the metals directly.

Growth Potential

Precious metals have an extraordinary growth potential because they are limited resources. 

In the past, gold and silver have yielded enormous returns, and many analysts think the current values are reasonable. 

Because of this, some investors find investing in precious metals more appealing than putting their money in stagnant savings accounts or low-yielding bonds.

Increasing Demand

Gold is needed worldwide, but nowhere is it more significant than the governments. Central banks bought 1,136 tons of gold in 2022 alone, which was worth $70 billion. 

The latest surge in China's central bank's gold purchases is a significant precaution against the billions of dollars in paper assets it owns but no longer trusts. Notably, China's central bank bought 62 tons of gold in 2022, which has since been increasing constantly.  

It is also worth noting that even nations like Turkey, Russia, and Ukraine are accumulating more gold. These stats prove that precious metals will remain in high demand from governments and investors for years to come. 

Where to Buy Precious Coins and Metals in Colorado?

After reading all of this, if you’re ready to secure your funds with a precious metals investment — here are some Colorado-based dealers to look for.

JM Bullion

JM Bullion was established in 2011 and has expanded rapidly to rank as the "fastest-growing precious metals company" in the United States. JM Bullion's dedication to providing a large range of products, honest pricing, committed customer care, and an easy buying experience is responsible for this success. 

The company is also regarded as one of the most favored investment partners in Colorado's precious metals market because of its investor-friendly features, transparent pricing structure, and committed customer service. 

All these factors make JM Bullion an ideal precious metals investment partner for those seeking online purchase solutions. 

Erie Gold and Silver

Located at 105 Wells St., Suite 130, Frederick, Colorado 80516, Erie Gold and Silver is a trustworthy precious metals dealer in Colorado that offers honest and open dealings of assets. 

The company provides various products catering to every investor's preferences. Specifically, they specialize in purchasing gold, silver, and platinum jewelry, jewelry made by Native Americans and Indians, sterling silver flatware, coins, and large denomination bills. 

Dave's Gold And Silver Exchange

At 548 S Broadway, Denver, CO 80209, Dave's Gold and Silver Exchange is a family-run company founded in 1988. This company has a long history of reliability in the precious metals industry and has been serving the investor community for over thirty years. 

Its areas of expertise include purchasing and selling and they offer various commodities, including precious metal bullion, scrap, coins, numismatics, diamonds, jewelry, currencies, and collectibles. 

So, if you want a wider investment variety, consider visiting Dave's Gold and Silver Exchange. 

Purchasing Online vs. Through Physical Stores

You have two alternatives when buying precious metals: shopping online or going to brick and mortar stores. Let's examine the benefits and drawbacks of each:


Online Purchase

Physical Store Purchase

Convenience and Selection

It offers a broad range of high-quality products combined with convenient browsing and comparison from home.

Yet, there’s no option of physical inspection before a purchase.

Enables physical inspection of metals for quality and authenticity, with access to in-store inventory.  

However, this purchase also involves travel and time spent visiting stores.

Cost and Pricing

You can expect competitive prices due to lower overhead costs. Assets available for purchase online also witness a slower reaction to price fluctuations.

On top of the existing costs, you will also have to pay shipping fees.

You can get immediate possession of metals. 

Some additional expenses also apply due to store expenses and utilities, which may contribute to higher overall prices.

Reputation and Security

It’s easier to explore reputable online dealers with transparent pricing and established track records. It also allows you to explore clear buyback policies.

Despite that, you may have to be cautious with less-known online sellers, ensuring trustworthiness.

Trusting a dealer by physically visiting them and examining the assets in person is easier. 

At the same time, it is hard to learn about the company's reputation with in-store visits.

Key Tips for Testing the Authenticity and Quality of Purchases

Regardless of your level of experience investing in precious metals, there's no guarantee that the asset you believe to be authentic is, in fact, genuine. Therefore, before completing a purchase, make sure to test the precious metals you plan to purchase. 

Here are a few helpful tips for confirming the legitimacy and caliber of the precious metals assets you choose to purchase:

  • Purchase from Reputable Vendors: Firstly, you must always purchase assets from reliable vendors and mints. This is ideal because reputable vendors offer authenticity certification and don't sell fake goods, ensuring that you’re receiving real precious metals.
  • Examine it Physically: Another essential tip is to take a good look at your jewelry. We suggest you self-examine the asset you want to purchase for any dents, scratches, or anomalies. You can also look for indications of wear or irregularities on the surface of the precious metals.
  • Weight and Measure the Asset: Accurate weight measurements can highlight variations in the purity of the bullion. Make sure you verify the weight against the specified values using a trustworthy scale.
  • Conduct a Magnetic Test: Did you know some fake metals could have magnetic properties? Yes, that’s true. And to avoid buying magnets in the name of gold or silver, make sure you check if a powerful magnet attracts the metal you’re buying. Since silver and other precious metals are not usually magnetic, you can easily differentiate between magnetic and precious metals with this approach.

So, whether you’re purchasing or selling precious metals, remember that testing is crucial. This process helps guarantee honest and open negotiations, allowing you to rest assured that you are investing in pure and authentic metals. 

Legal and Tax Considerations

Now, if you are unsure how the tax implications for precious metals in Colorado work, don't be. The 1990 Precious Metal Bullion and Coin Exemption in Colorado states that sales, storage, usage, and consumption of precious metal coins and bullion are exempt from state sales and use taxes. 

With this exemption, you can purchase coins and bullion in Colorado and receive the same tax benefits as you would for other investment assets like stocks and bonds. Additionally, it promotes Colorado’s coin and precious metal bullion business by attracting investors and industry-related events to the state.

Due to this increased industrial competition brought about by this exemption, sales and conventions that support the state's economy have increased.

Risks and How to Mitigate Them

Even while investing in precious metals has a long history of yielding steady returns, it's crucial to remember that no investment is risk-free. After all, being aware of the risks helps you plan your investments strategically based on your specific risk tolerance. 

Now, what are the common risks that come with investing in precious metals? Let's explore: 

Security and Storage

There's always a chance of theft when you buy precious metals like coins, bars, or bullion. Specifically, keeping a significant amount of gold at home is neither practical nor safe. Most investors use the depositories and storage facilities recommended by their investment dealers to avoid this safety concern. 

This is a dependable method of securing your precious metals, but it also has annual storage fees that vary depending on the firm storing your belongings.

Low Liquidity

Another notable risk that comes with precious metals investment is limited liquidity. This essentially means that the process of selling your coins and bars may be difficult. Newly manufactured coins typically sell quickly, while collectibles take longer to find a buyer. Because of this, some sellers eventually liquidate their assets for less than what they paid. 

Required Experience

Like any other investment industry, investing in precious metals has a learning curve, just like most non-traditional investing options. Therefore, understanding the specifics of investing in gold and silver can be challenging, even for seasoned investors. 


Purchasing precious coins and metals is a great way to safeguard your finances and diversify your holdings. Nonetheless, before making any investing decisions, it is critical to understand the potential dangers. For this, we advise you to conduct thorough research and speak with a financial expert before purchasing precious metals in Colorado. 

We hope this detailed guide will aid you in your precious metals investment decision in Colorado.

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