When you buy gold from a private dealer, your transaction is confidential. You don't have to worry about your purchase being reported to the government or financial institutions. And, you can be sure that the gold you're buying is genuine and of good quality.
You'll get a guarantee of authenticity and an appraisal certificate for insurance purposes as well. With private dealers, you won't have to worry about whether or not the gold is real because they are always willing to show you their goods in person before any transaction takes place. The prices may be higher than in other places but this includes a number of guarantees that cannot be found elsewhere.
If you want to protect your personal information while also making sure the metal is what it claims to be, then private dealing might be right for you. It's much more difficult to find such assurances when buying through traditional channels like banks and stores.
The increased cost associated with private selling is worth it when considering the peace of mind gained. The decision between using public or private sellers really depends on what your needs are. If you need confidentiality and assurances that the product will match its description, then consider going through a private seller.