Can You Buy Gold From a Bank? Should You Buy From a Bank?

Author: Focus on the User | 8 min read
Buying gold from a bank

Banks don't usually allow clients to buy gold, which makes central banks some of the biggest buyers of precious metals. In fact, it is rare for a regular bank to offer precious metals as a service. Even if they do, the options are limited. However, it is possible to buy gold from reliable precious metals firms.

Can a Bank Help You Buy Gold?

Can a bank help you purchase gold bullion?

Central banks around the world are buying a lot of gold. It is estimated that the United States has the largest gold reserve, followed by Germany, the International Monetary Fund, Italy and France.

Because the central bank governs the country's monetary policy, the central bank can buy gold. U.S. and European central banks buy gold to protect against inflation and to help manage risk and stability. The U.K. and Japanese central banks also buy gold to help protect against the U.S. dollar and inflation.

Are banks the only place where you may get gold coins or other precious metals?

It's possible, but you might want to look elsewhere. Central banks buy gold for many kinds of reasons, but buying gold through a bank is far from straightforward.

The majority of astute investors are aware that gold is a wise investment. Investing in gold is a low-risk, long-term strategy that pays off in a matter of years. Looking at the past few decades' pricing trends, it's clear that the price of gold is only going to rise. To put it another way: in times of crisis, gold performs better than other investments. As a result, it's a wise purchase.

See also: Cheapest Places to Buy Gold Online

Buying gold via a bank has several benefits

Many banks offer you gold products and say that it's simple to invest a small amount of money each month and grow a portfolio. These statements typically sway those who aren't interested in investing or aren't familiar with it to take the plunge. Their lack of understanding of the seriousness of gold investment leads them to believe it is the least desirable alternative for most clever investors since it is so pricey. The bottom line is that investing in gold given by banks is not a good idea unless you have a lot of extra cash lying around.

Do Banks Sell Gold In the United States?

The answer is no because only a few banks are allowed to sell gold. In addition, the majority of institutions only offer digital gold as a form of payment. Call the bank first to make sure they sell gold before making the purchase. Inquire at a bank about whether or not they sell gold, and if they do, what shape it takes.

Gold investing is a serious business, and most savvy investors avoid buying it from a bank. They are unaware of this. Consequently, below is a list of reasons why buying gold coins from a bank is not recommended:

If you are purchasing gold coins for investment purposes, it is not a good idea to purchase a commodity at a greater price than the market price. When you buy gold coins from a bank, you'll pay a premium of 7% to 10% over the market rate.

When banks acquire gold coins from other nations, the only thing they look for is a certificate certifying the metal's purity. Bank employees cannot check the gold coins you wish to buy for authenticity. Because no one has ever tested the gold in the banks, you can never be certain of its quality.

See also: Best Gold Coins to Purchase

Returning gold coins to a bank will not result in a cash payout: You will not be able to sell your gold coins for cash if you do so. In accordance with Reserve Bank policy, it is illegal for banks to accept gold coins, even if the consumer bought the coins from them. Your gold coins must be sold to a jeweler or pawnshop to get the money you're looking for. You'll get less for your gold coins at the jeweler since the market value of gold coins is always less than the value you paid for them when you bought them.

For example, if you purchased gold coins from a bank and are now trying to cash them, you will find it impossible to do so. You'll be in a lot of trouble if you find yourself in this predicament. It's because banks don't give back gold. There is a significant probability a respected jeweler will not accept them for sale. Regardless of how many jewelers are interested in purchasing your gold, you will still receive a lesser selling price than when you purchased the gold coins.

Selling for less than what was paid for: Gold coins are sold at a greater price by banks. They demand a 7-10 percent premium on gold coins, despite the fact that the producing expenses are almost zero. As a result, the buyer must pay more than the market price for the same purity level of gold.

Best way to buy gold instead of through a bank

When Buying Gold, What's the Best Way to Do It?

Instead of buying gold through a bank, you might convert some of your IRA funds into gold. This retirement plan allows you to diversify your IRA investments.

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