Do you want to buy gold coins safely from a bank using your credit card? If YES, here is a list of banks that sell gold coins to individuals. There are many reasons why you should start buying and selling gold coins. Gold is a natural hedge against the stock market and entrepreneurs buy them for various reasons.
Gold offers benefits far beyond the fact that its price can rise. For instance, gold is a tangible asset. It can’t be destroyed by fire, water, or even time. And unlike other commodities, gold coins don’t need feeding, fertilizer, or maintenance. Also people buy gold coins because they are free of counter-party risk. Gold coins need no paper contract to be made whole.
Why Start a Gold Trading Business?
Gold is the only financial asset that is not simultaneously some other entity’s liability. It doesn’t need the backing of any bank or government. Gold coins are a very valuable investment that is risk-free and does not need constant maintenance. Gold is a good store of value that can retain its value over a period of time; and it can even appreciate in value.
Gold is also highly liquid; you can sell them anywhere in the world and you can always find buyers for your cold coins within a short period as gold is always in demand. You don’t need to be a specialist to start buying and selling gold; anyone can trade gold coins and this article would show you how.
Where to Buy Gold Coins
There are a number of places where you can buy your gold coins from:
Table of Content
- Do Banks Buy and Sell Gold Coins?
- a. Make Inquiries from Your Bank
- b. Find out The Current Prices
- c. Purchase From Your Bank
- d. Obtain Your Coins and Certificate
- a. Market Feasibility and Research
- b. Be very careful
- c. Don’t be taken
- d. Choose your coins very carefully
- e. Know the market price for gold
- Test Kit for Gold
- A Professional Jewellery Scale
- Buy a Magnet and File
- Magnifier Loupe
- Be Professional
- Bullion Coins
- American Gold Buffalo
- South African Gold Kruggerand
- Australian Kangaroo
- Austrian Philharmonic
- Canadian Maple Leaf
- American Gold Eagle
- 2. Numismatic Coins
- Why Buy Gold Coins With a Credit Card?
- i. Sell to Jewelers
- ii. Sell to Pawn Shops
- iii. Sell Online
- iv. Sell to Your Bank
- Know the value of gold
- Know the value of your country’s currency
- Sell your coins when the demand is high
- Avoid selling to unsteady buyers
1. Local Coin Shops
There are a lot of local coin shops spread across the US where you can buy and your sell your coins. They are usually authorized by the US government to buy and sell gold coins.
2. Online Coin Dealers
You can also buy and sell gold coins online although this is not always the best option because apart from the fact that you would also need to pay shipping fees, you may also end up being scammed into buying fake coins. You can find a lot of them on eBay but before you buy from them, make sure you look out for reviews, and gather a lot of information about them online before you do business with them.
3. US Mint
The united states Mint which is responsible for manufacturing gold coins backed and guaranteed by the US government also sells gold coins. You can check the website of the US Mint for a list of its authorized dealers closest to you.
4. Your Bank
Buying from your bank is the best way to buy gold coins. Banks get their coins directly from the US mint, or from authorized dealers. They also employ strict verification procedures to ensure that the coins they trade are original. Your bank would also issue a certificate of originality to guarantee that the coins are genuine.
Do Banks Buy and Sell Gold Coins?
The answer to the above question will depend on where you live. A lot of banks in the US sell gold coins but they would not usually publish information about it on their websites or advertise it openly for security reasons.
Banks like HSBC and Leader Bank sell gold coins but to get a comprehensive list of banks that sell gold coins in your location, visit the website of the US mint, and use their authorized dealer locator to find banks that sell gold coins around you.
You can also call your bank and ask them if they sell gold coins. Many banks would not openly advertise the fact that they sell gold coins but if you call them, they would readily offer you helpful information on how to buy gold coins from them.
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.
Steps to Buy Gold Coins from Your Bank
a. Make Inquiries from Your Bank
The first step is to call your bank or send them an email to find out if they have gold coins for sale, and the steps you need to take to be able to purchase them.
b. Find out The Current Prices
Just as the price of 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.
c. Purchase From Your Bank
Inform your bank about the quantity of coins you want to buy and find out what their payment policies are. Most of the time you can pay for gold coins using credit cards, checks, and money orders.
d. Obtain Your Coins and Certificate
After making payments, your bank will verify the purchase and hand you the coins you have purchased along with a certificate showing the value of the gold, the date of purchase, and the carat. Make sure you store your gold and the certificate in a safe place until you are ready to sell them. When you are ready to sell, there are a few places to do so:
5 Tips for Buying Gold Coins Safely Online in USA Without Risk
Buying and selling gold coins can be very lucrative if you do it right. It takes time to understand this business perfectly and you have to make all necessary decisions before you dive into buying gold coins. In the past, investors could only buy gold through registered dealers. Today buying gold is easy to do without such an intermediary and can be a sound way to invest. How to buy gold coins online using credit card in the United States may include…
When planning to start buying gold coins, we suggest you go for someone who is insured, has controls in place to detect fraud, and guarantees their product. Note that a good online gold dealer should have fair prices. You have to understand the price of gold especially the day you are buying, and calculate the percent over spot price the dealer charges.
Also have it in mind that a good online dealer should offer flexible payment methods. Credit and debit cards should most certainly be accepted, as should check and wire or bank transfers. You also have to ensure that the dealer has excellent supply chains. We also suggest that you verify the dealer’s reputation. Take your time to research testaments and recommendations from customers or other autonomous sources.
b. Be very careful
You have to understand that not every dealer is scrupulous and above-board in their dealings. Be cautious of online dealers who have a common e-mail address (i.e., Yahoo, Hotmail or Gmail) for their contact information. Do not do business with a dealer who doesn’t have a secure system for accepting credit card payments.
c. Don’t be taken
We strongly suggest that you contact the vendor’s customer service department either by phone or e-mail before you start buying or paying. Try to enquire about the specific items you’re interested in buying, warranties, available payment methods and return policies. The manner in which they respond to your questions will tell you a lot about how they do business.
d. Choose your coins very carefully
There are two types of gold that are commonly traded: bullion and coins. Gold bullion can be in the form of coin or bars. There are pure gold, and they are priced only by the amount of gold involved. Gold bars are recommended more for “big league” investors or collectors, while Gold coins are more collectible, have a lower threshold for entry into the investment market, and are easier to cash in.
e. Know the market price for gold
There are a lot of websites that post daily gold prices and provide periodic price updates throughout the day. Some sites list gold prices in several currencies, including the Euro, Japanese Yen, Swiss Franc and the Indian Rupee. We believe that a good fair price will always reflect the current nominal value of gold.
Note that gold bullion will have a small mark-up above the spot price (the instantaneous market price). A smaller purchase will entail a larger mark-up in terms of percentage compared to a larger purchase.
- Purchase from a trusted bullion dealer and a well-known gold brand: Gold should be purchased from known brands or dealers who have been in the business and have been deemed reliable by others. This would help in preventing fraud.
- Do not just buy from the first store you encounter. Look around to be certain that you are getting the best price. Always ensure you check about one or two stores so as to get the best rates available.
- Have a secure place for storage: Because of how expensive gold is, it is prone to theft, and sometimes in the process it could be dangerous even to you, so it is best the Gold you purchase is kept in a place that is not easily accessible by strangers. Either have a private vault or ask your gold dealer if you can store the bullion with him. This is for the safe keeping of your gold.
- Break down the purchasing process of the gold rather than buying all at once. In the event that there are issues with some gold products, you can always buy at cheaper prices.
- The price of gold varies depending on the market. Do not fret once the price drops and sell off all your gold. The benefit of this business is in its long term rewards.
5 Equipment You Need to Buy and Sell Gold
Before you begin buying and selling gold, the following are some of the steps you should follow so your venture would run smoothly. They include;
Test Kit for Gold
In this business, a necessary purchase is a gold testing kit. This is not an expensive purchase. The kit is used to double check the gold carat that a customer wants you to buy. The different acids necessary to test 10k, 14k, 18k, and 22k will come along with the kit.
A Professional Jewellery Scale
Having a professional jewellery scale is absolutely essential. The cost might be high at the point of purchase, but in the long run the service it provides is worth it. Using a kitchen scale is illegal in terms of trade. Apart from the kitchen scale not being legal, it makes you and your business seem highly unprofessional.
Ensure that your scale is accurate by taking readings daily. Have records that show the accuracy of your scale in the event that you are asked about it. The questions can be from either an official body or a customer.
Buy a Magnet and File
In the gold industry, having a magnet at hand is always of tremendous benefit, so it is better to buy a quality one. A metal file that is used to scrape the outer layer of jewellery is equally needed. The file and magnet are inexpensive and will last for a long period of time.
Whenever a new item is brought in, check for hallmarks that will state what carat of gold the item is. A magnifier loupe aids with viewing such marks easily. In some cases, an acid test might still be needed. You can perform an acid test with the 10k acid from your gold test kit. First create a small scratch on the jewellery with your file, and then proceed to do the acid test. All this should be done after the owner has granted permission.
So you are just beginning and are unsure of your skills. Start out with jewellery that you own. This will generate the confidence needed when a customer wants you to test out their jewellery.
Types of Gold Coins
The first step towards buying and selling gold coins is to learn about the different types of coins. There are different types of gold coins in the market but all of them fall into two basic categories.
Bullion coins are made from highly refined gold. In most cases, they are manufactured and guaranteed by the government, and can be bought from the government mint. Bullion coins come with a face value stated on them but the gold content is usually worth more than the value of the coin.
They are also accepted as legal tenders in the countries where they are minted. The most popular types of bullion coins for investors come in 22-24 karat and they contain a full ounce of gold. They include:
American Gold Buffalo
The American Gold Buffalo is backed by the United States Government. It has a face value of $50 and can be bought in quarters, halves, or tenth-ounce denominations.
South African Gold Kruggerand
The Kruggerand is backed by the government of south africa and is one of the oldest circulating bullion coins in modern history. It has no face value but it can also be bought in tenth-ounce, halves or quarter denominations.
The Australian Kangaroo has a face value of $100 and is backed by the Australian government. A new depiction of the currency is minted every year. For instance, the 2017 Australian Kangaroo wears a different look from the 2016 Kangaroo. Just like the other coins, you can buy halves quarters or tenth-ounce denominations of this coin.
The Austrian Philharmonic is minted and backed by the Government of Austria and it is one of the top selling coins in the market. You can buy the Philharmonic in twentieth-fifth-ounce, tenth-ounce, halves and quarters.
Canadian Maple Leaf
The Canadian Maple leaf also has a $50 face value and is backed by the Commonwealth of Canada. It is tagged as the most secure gold coin in the world because the Royal Canadian Mint has used some advanced security measures to guarantee the security of the Maple Leaf.
American Gold Eagle
The American Gold Eagle is the most popular coin in the world and it is backed by the United States Government. It also has a face value of $50 and can be bought in halves, quarters and tenth-ounce denominations.
2. Numismatic Coins
Numismatic coins are collector’s items, and of higher value than bullion coins. The value of numismatic coins is not necessarily based on their gold contents but on the fact that the coins are very rare. Except if you want to become a coin collector, you don’t really need to deal in numismatic coins.
As an investor, you should stick with buying and selling of bullion coins as people are more comfortable with them which make them much easier to sell and make profit from.
Why Buy Gold Coins With a Credit Card?
Gold coins for so many reasons is the ideal way of investment and the reason you may want to buy gold coins using credit card may include..
- Normally it could take a lot of days for a check to arrive and clear, but a credit card payment often clears within a business day. Paying by credit card is also faster than a bank wire transfer, which requires more work to set up.
- You’re trying to meet your card’s minimum spend for a signup bonus. We were able to note that a lot of signup bonuses need a minimum spending requirement — sometimes thousands of dollars over a specific period. Buying gold with your credit card could help you get closer to a bonus.
But just like every other form of investment, buying with a credit card online also has its disadvantages. The reason why you may not want to buy with your credit card may include…
- You may pay a “convenience fee” of up to 4% just to use your credit card. If you buy $5,000 in gold, for example, it means that you pay a $200 fee.
- It may be fun to accumulate rewards, but credit card processing fees will likely erase what you earn. The exception is signup bonuses, which can give you a big win in points, cash back or miles.
You need to understand that a lot of gold dealers won’t accept credit cards for two main reasons: high processing fees and the increased risk of fraud. However, you’ll find some dealers who will. If you’re looking to use a credit card to buy bullion, watch out for potential restrictions:
- The dealer may set purchase limits. For example, they may require a purchase between $100 and $5,000.
- A lot card networks may not be accepted. Some dealers bar Amex and Discover, for example, citing high fees.
- You may pay a credit card surcharge. When you use plastic, the dealer pays a processing fee to their bank. They could choose to pass this fee along by adding a surcharge of up to 4% on your order.
- To avoid a credit card surcharge, consider paying with a personal check or wire transfer. A possible perk: Your dealer might give you a discount for paying this way.
Where to Sell Your Gold Coins and Bullion Safely
i. Sell to Jewelers
A lot of high end jewelry sellers also deal in gold coins so you can approach them and sell to them but make sure you only deal with reputable dealers and not rogue sellers as they could employ deceptive tactics to switch your original gold coins to fake ones without your knowledge and then return them to you. You need to be careful and smart whenever you decide to sell your gold coins in order to avoid situations such as this.
ii. Sell to Pawn Shops
You can choose to sell your gold coin to either a pawn shop or a jeweller. Pawn shops also buy gold coins. It is better to still take your gold to either of them even if you won’t sell there so they can assess the value of the gold for you.
After you have gotten an estimated value of the gold, use the information to set a purchase price either online, or to a retailer or even individuals. Do not limit your stops to just one shop. Visit about three to four shops to make sure you are getting the right value or estimation price for your gold.
iii. Sell Online
You can also sell your coins online on platforms like eBay, Craigslist, or other online platforms dedicated to buying and selling gold coins.
iv. Sell to Your Bank
Lastly, you can call your bank to find out if they would be interested in buying gold coins. Many banks would also buy from you as long as you can show a genuine certificate of purchase. You can also sell your coins at coin shows or online communities and forums dedicated to coin trading but make sure you have great negotiating skills so that you can always get the best deals.
Coin trading is a very profitable investment and if you do it right, you won’t regret venturing into buying and selling of coins. To ensure you get the best available bargain for your gold, the following should be put into consideration when trying to sell them off. They include;
Insider Tips for Selling Your Gold Coins Profitably
Your goal is to make profits from the coins you have purchased so after buying the coins, you have to continue to keep an eye on the value of the coins so that you can know when the values have risen, and then you can sell your coins for profit.
You can continue to keep an eye on the prices on the website of the US mint or check places like www.goldprice.org for the latest prices. It helps to wait a few years after purchasing the coins before selling them because by then the value would have risen considerably and you can earn a sizable profit from selling them.
Know the value of gold
In buying or selling, it is essential to keep track of gold’s prices. Several newspapers and websites give updated news on the prices of gold. It is advised that you keep up with those medium. Do not rush to sell your gold unless what you have is doing extremely well in the market. Sell your gold coins when the prices are most favourable or when you really need the income.
- A good site to keep watch of gold value is www.goldprice.org
- Sometimes it is best to wait for years before selling particular coins, no matter how well they are doing in the market.
Know the value of your country’s currency
Information on this can be gotten online and in newspapers too. Selling your gold coins when your country’s currency drops is advisable because gold and currency of a country tends to have an inverse relationship.
Sell your coins when the demand is high
Proper research and going with your gut feeling will help you know when the demand for gold is about to drop or increase. Selling before the value drops will allow you leave with more money than was spent on the purchase. The market is not always predictable. It is better to gauge and sell when prices and demand are at their highest, that way you can get ample profit.
At the end of the day, the decision is entirely up to you. Follow your heart, despite what the market and research might be saying.
Avoid selling to unsteady buyers
These buyers are individuals who come around and set up shops in mall entrances or hotel ballrooms and avoid paying full price. These individuals come with promises to purchase at high prices but usually end up paying way less than the value of the gold.
An instance is a buyer being interested in a gold piece that has been appraised for $500 and wants to buy it for $230. The best thing to do is to deal only with retailers that have been approved by the Better Business Bureau.
Note: Do not be fooled by cheap prices and seemingly quality gold. A lot of scammers exist in the gold business. Things like offers of free storage or delayed delivery should be taken as signs to investigate further.
Lastly, avoid purchasing from telemarketers as their prices have been raised and possibly doubled. Gold is a very viable commodity, and if the steps above are followed appropriately, you can buy and sell gold successfully and make profit in the process.
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
Industry Overview About the Gold Industry
Gold price per ounce has seen massive growth over the past few years. At nearly $1400 per ounce, the average investor is not in the market for a bar that size, and even those who might afford would find it difficult to unload a bar that size to their local dealer.
This is why an average customer buys gold in one ounce form, and the cost to acquire gold in smaller quantities is higher. A lot of factors help to dictate the price disparity, not the least of which is the relative cost of minting a large bar of refined gold into one ounce coins.
These coins ship from large mints like the United States Mint and the Royal Canadian Mint of Canada to select authorized dealers, who in turn ship them to over 4,000 coin dealers in the United States alone before they find their way into the hands of a gold investor.
Have it in mind that there are shipping and insurance charges through each stage of the process, and before an investor receives his gold shipment, he may have paid brokerage fees, credit card fees, or other ancillary charges.
Research has shown that a lot of dealers will not ship below a certain volume, while some will not ship above a certain volume. Certain dealers have different price breaks at different quantities. For example, one dealer may offer a discount for buying more than fifty coins, while another may offer a break at sixty.
Entrepreneurs in india, China, and other nations join U.S. investors in their positive views on gold bullion and coins. This combined demand generated the buying of nearly 290 tons in the first quarter, representing an investment of more than $11 billion. Chinese buying led the pack with a 30 percent Q1 increase over the same period last year.
Growing tremors in the Chinese real estate market and the yuan devaluation are two factors this strong performance is attributed to. In the United States there was some profit taking in the gold segment during Q1, resulting in a dip in demand for imported bullion coins and other items.
However, the report notes the growing expectation of a stock market correction, which would quickly reverse that trend. With positions in gold bullion and coins increasing, many investors are seeking both protection and potential long-term appreciation in their gold holdings.