The answer to the above question will depend on where you live. If you are in Europe or Asia, then you have to check with your bank as most of this information is kept under the radar. However, there are still banks that offer gold products to retail customers, and people in Switzerland, for example, are quite favoured here.
Can You Buy Gold at a Bank?
But if you live in the US, it is a common misconception that you can buy gold at a bank. Most people expect banks to issue gold; harkening back to times of old, but today most physical gold is purchased from non-bank distributors. Even the US Mint requires retail customers go through an “authorized purchaser” (unless you want a proof product).
Banks are these days not necessarily known for buying gold coins even when they did so in the past. Some of the smaller community banks may still buy gold coins but most banks don’t do so. There are varying reasons for that but the most important reason is probably because there is so much fraud related with gold coins and bars.
Additionally, organized crime networks, working from North Korea to Bulgaria, are counterfeiting gold coins and bars using tungsten for coin cores as a replacement-metal. Tungsten and gold have almost the same specific weight and that makes it quite challenging to identify a faked coin.
Banks lack the ability and the equipment to work with gold in the new millennium, so the risk of buying a nice looking coin for a high price but getting nothing but junk is quite gigantic. Indeed, community banks especially in the United States offer buying services for coins but they don’t give you cash because they only collect the coins and mail them in to a qualified coin-dealer.
The selling-process tends to take too long and it is not always advisable to sell coins that way. Also, you might not get a great price for your coins because the profits made with your coins will be shared between the bank and the coin dealer.
Even though banks were known to deal with gold and coins in times past, probably back when old miners brought their daily mined gold to their local bank, and also in the 19th century when banks accepted mined gold, nuggets and even coins. But they don’t do so anymore.
While there are still banks that do sell gold, the selection of assets for purchase are often limited to a select assortment of gold coins. Nowadays, fewer and fewer banks actually hold physical gold that they are willing to sell over the counter. If you are determined to buy gold from a bank, make sure you contact them beforehand to ensure they have a supply to sell.
List of Banks That Buy and Sell Gold Coins and Bullion in USA
Just like it was stated above, in some countries it is quite common to buy gold coins from banks; however in the US it is not the case. Federal Reserve does not deal with individual customers and only sells directly to banks.
In very rare cases, some banks might offer commemorative series gold or silver coins but this might take place only for very limited time periods. So, if you want to buy gold coins from a bank in the US, this will not be possible because most US banks will not sell gold bullion coins or bars to the public.
While most banks hold a portion of their securities in gold bullion bars, these are not for sale to the public. It may be possible to buy gold coins from a bank in Switzerland and some other countries but not in the United States.
To buy gold coins in the United States, you need to find reputable gold coin dealers in your area or online. Some good gold online dealers that have become popular in the recent years due to their impeccable reputation are GoldLine, APMEX Gold, Gold Price, Northwest Territorial Mint, Bullion Vault, Bullion Direct and many others.
Banks That Buy and Sell Gold Coins and Bullion in the UK
The Royal Mint is the only known financial institution to sell gold coins currently in the UK. The name itself provides the reassurance that your gold can be trusted and is of top quality and condition. The restriction with this avenue is that The Mint only sells new gold coins (such as the Sovereign), it doesn’t offer circulated coins or gold bullion at all.
Therefore, if you are looking for tax free gold coins then The Royal Mint can certainly offer you pretty coins. However, if gold investment is your main driving force, then this is an extremely expensive option. You will more or less be receiving far less gold for your money than if you source the gold elsewhere.
You cannot sell the gold back to the Mint so as to realize a profit on your gold investment, you will need to sell at the prevailing rate to a gold dealer. Paying this initial premium on the gold will severely affect your returns.
Banks That Buy and Sell Gold Coins and Bullion in Canada
Note that the first point of call for people in Canada looking to buy gold coins is their local bullion dealer, which may or may not be easy depending on your location and proximity to a large city.
Bullion dealers offer a safe and cost-effective method to buy precious metals. The second local option is to buy physical bullion at the bank. You might have always assumed that your bank only worked with dollars and cents, but many banks in Canada also offer bullion services. These banks include;
- TD Bank
Banks That Buy and Sell Gold Coins and Bullion in Australia
There are numerous options to consider when choosing where to buy gold in Australia. There are several gold dealers around Australia, so the location of those dealers will influence your decision if you plan on buying gold in person.
There are also many online dealers that allow you to conveniently buy gold bullion over the Internet. Coupled with specialist dealers, you can also buy gold through marketplaces such as eBay and even arrange purchases through precious metal forums.
However, Banks in Australia hardly buy and sell gold coins and bullion to the general public, instead they rent a safety deposit box to help client securely store their gold bullion.
Frequently Asked Questions
Does Bank of America sell gold coins?
No, the Bank of America does not sell gold coins. In fact, as a general rule, banks in the U.S. do not sell gold bullion or gold coins.
Does Chase Bank sell gold coins?
No, Chase Bank does not sell gold coins. The Bank tends to avoid selling gold due to its price fluctuations, which makes it more volatile and risky for the bank to handle.
Does Wells Fargo sell gold coins?
No, just like most well known banks in the United States, Wells Fargo does not sell gold coins.
Does CIBC sell gold bars?
Yes, CIBC sells gold bars. Canadians looking to buy gold and silver now have fast and convenient options at CIBC branches and a new online store, which can also be accessed via a mobile device.
Why do banks sell gold?
While there are banks that do sell gold, just very few banks actually hold physical gold that they are willing to sell over the counter. However, the main reasons Banks sell gold include;
- To Manage and Mitigate Risk
- To Ensure Stability and Growth
- To Hedge Against Inflation
Can you sell gold bars to a bank?
No, you cannot sell gold bars to a bank, especially in the United States. They don’t need the aggravation and most banks do not accept gold bars due to missing evaluation possibilities.
Can you sell gold coins to a bank?
Yes, and the bank will give you the face value of the coin. However, note that you can get a much better deal by selling them to someone who deals in gold coins as a regular business.
What is the procedure to sell your gold coins in a bank?
Just like with gold jewelry or gold bars, there are several steps that you can take to get the best price for your gold coins:
- Know what you are selling and understand its value: Gold coins are commodities. As such, many trade at a fixed price through bullion dealers and other trading platforms. To get a fair price for your gold, it’s important to be aware of what you are selling and how much it’s worth.
- Make Inquiries from Your Bank: Take your time to call your bank or send them an email to find out if they buy gold coins, and the processes and requirements.
- Find out The Current Prices: Just as the price of the currency fluctuates, the price of gold also fluctuates so you have to find out what the current price for the day is before you make your purchase. You can find out bullion coin prices for the day on the websites of the US Mint.
- Sell to Your Bank: Inform your bank about the quantity of coins you have to and find out what their payment policies are. Then if it suits both parties, get your coins authenticated and make the transactions.
How much gold can you buy?
Notably, there’s no limit on how much gold bullion an individual can buy and own. There are no laws prohibiting anyone from buying as much gold bullion as possible. You can hold as much gold bullion as you can afford and purchase.
Which gold coin should I buy?
The best gold coins to buy are bullion coins, such as the American Gold Eagle, Canadian Gold Maple Leaf, or South African Krugerrand. Collector’s coins, called numismatic coins, are also very profitable but entirely a different game than bullion gold coins. They can sell at a very high premium, and their prices are dependent on more factors. Unless you are very knowledgeable about collector’s coins, you are advised to stick with bullion coins.
How do you sell your gold Krugerrand coin?
The 1 oz Krugerrand is one of the most iconic of all the gold bullion coin’s on the global market. To sell your gold Krugerrand coin, approach any gold dealer of your choice. Indeed there are many out there but it is advisable you sell one with an A+ rating with the BBB.
If you choose to use a local dealer, just go in and get a price quote. It should be spot plus/minus a few dollars. If that is acceptable, they will ask for a copy of your ID, and you will be walking out with cash or a check a few moments later.
If you decide to use a national dealer, give them a call. They will quote you a price. If the price is comfortable they will lock in the sell order. They will then send you shipping instructions and record your preferred method of payment (usually check or ACH bank credit).
Consider using the USPS to ship your package, they are the only ones who will pay an insurance claim should it be lost in transit. Also remember to provide the tracking number to your dealer, and wait for your money to arrive.
Which Canadian banks sell gold?
- TD Canada Trust
- Canadian Imperial Bank of Commerce
- Bank of Montreal
- Royal Bank of Canada
- Scotia bank
Can you buy gold from Amazon?
Yes, Gold is available in 24, 22, 18, and 14 carats on e-tailers like Amazon. Although it might not be the right place to buy gold coins, but yes, Amazon sells millions of products, and Gold Coins is one of them. Due to their systems and processes which are consumer-centric, the possibilities of fraud is very less. Nonetheless, due to Amazon’s commission structure, the pricing of Gold Coin might not be the best on Amazon.
What are the acceptable types of payment for the purchase of gold and silver through GSA and SSA?
You may pay in cash or authorize the amount to be debited from your account. Alternatively, you may purchase gold using CPF funds
If I buy gold coin how easily is it to sell the gold coin back and get the same amount of money I put in 3 months?
Without doubts, you will lose money unless the price of gold goes up about 8 percent. Have it in mind that when you buy gold, you pay about a 2 or 3 percent premium. When you sell, you sell at a 2 percent to 3 percent discount. Owing to other expenses, gold has to go up about 7 or 8 percent for you to break even in 3 months, and that is practically impossible.
If the bank will not buy it back, where else can you turn to?
- Pawn Shops
- Local Jewellers
While buying gold bullion from banks might sound like a good idea, it is not a possibility in the US, UK, and Australia. You will have to consider buying gold investment from large Mints and well established gold dealers.
But if you are looking for ways to protect your wealth or diversify your investment portfolio, gold coins and bullion may be a practical solution. However, please be aware that just like any other type of investment, buying gold comes with certain risks.
Take your time to do your research and make sure you understand the risks involved in buying gold, including the cost of storage and security as well as the fact that the returns may not match those provided by other investments. This will help you make know whether buying gold is the right choice for you.
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