Particularly since the financial crisis of 2007-08, gold has appealed to investors looking for an investment that will hold its value and preserve their wealth. Many investors see gold as insurance against global uncertainty. Unlike currency, gold has an inherent value because of its high demand and exceedingly limited supply.
Buying Gold at Banks
It would be reassuring to walk into the bank that you’re used to doing business with and walk out after buying a gold bar. But the reality is that a lot of banks do not sell gold. Those that do often sell only gold coins. Also, if you buy gold locally, there is added risk in transporting it from the bank to where you’re going to store it. You could be vulnerable to theft, or worse.
Buying Gold Online
Today, most gold is bought and sold online. Like stocks and mutual funds, it can be purchased with a few clicks on your computer keyboard. Gold is even sold on eBay.
Chances are that you’ll be purchasing gold online. But it’s a good idea to do your research first. If you do a little digging, you might find that some websites selling gold have no physical address. This is a big red flag. Also, you could wind up paying a lot more than the gold is worth if you get caught up in an eBay bidding war. Also, be aware there often are extra fees attached to eBay purchases, such as shipping and handling.
Finding a Reputable Dealer
It’s best to do business with a large, established gold dealer who is located in the United States. Do an internet search of the dealer's name that you’re considering doing business with and see what comes up. Look at customers’ reviews, and also take note of how long the dealer has been in business. Check out its Better Business Bureau rating. Once you’ve determined which dealers are the most reputable, you can browse their websites for the different types and weight of gold bars they have for sale.
Evaluating Gold Coins
All forms of pure gold are valuable, but not all pure gold is equal. Because of their intricate designs and, in some cases their rarity, gold coins may have value to collectors in addition to the value of the gold they’re made of. Unless you're an expert in coin valuation, this can make buying and selling gold coins more complicated and riskier. Keep it simple and reduce your chances of being scammed by doing business only with a reputable, verified dealer.
Newly minted U.S. gold coins sometimes can be purchased at banks and always through dealers. Coin prices are based on the market value of the metal. Their meltdown value is usually far more than their face value. The U.S. Mint’s website provides a link to help you locate an authorized dealer for the coins they produce. The purity of newly minted U.S. gold coins is guaranteed by the government. Coins offer more flexibility than bars because you can buy and sell them in smaller increments.
Exploring Gold Bars
If you want to buy a large amount of gold, bars are the way to go. Big investors usually buy bars because they can be stored more efficiently than coins. While gold bars come in a variety of weights, they’re generally heavier and costlier than coins. If you decide to sell yours, finding a buyer can be more difficult than finding a buyer for coins. There's a larger market for coins because they're affordable to more people. But the dealer you bought the bars from often can help you find a buyer. Bars are the easiest form of gold to hold on to as a long-term investment.
FAQs
Some banks in the U.S. sell gold bars and coins (as well as silver coins). This can be a good option for investors who prefer the public accountability of a federally regulated institution. However, your options may be limited compared to what you'll find at an online retailer.
Can you go to the bank and ask for gold? ›
Central banks are among the largest buyers of gold, and yet it's very rare for customers to be able to buy gold at banks. In fact, it's unusual for typical banks to sell any precious metals. And even when they do, their selection is limited.
Can I exchange gold for cash at a bank? ›
Banks Do Not Accept the Gold Coins Back
This means that you will have to find a jeweler or a pawn shop to sell your gold coins.
Which bank is best for keeping gold? ›
Gold Loan Interest Rates of Top Banks & NBFCs
| S.No. | Bank | Loan Amount |
|---|
| 1. | State Bank of India | Rs.20,000 to Rs.50 lakh |
| 2. | HDFC Bank | Rs.10,000 onwards |
| 3. | Kotak Mahindra Bank | Rs.20,000 to Rs.1.5 crore |
| 4. | Central Bank of India | Rs.1,000 onwards |
6 more rowsApr 2, 2024
Here are some of the ways you can buy gold cheaply:
- Buy in Bulk. ...
- Consider Investing in Other Forms of Gold. ...
- Look for the Best Deals. ...
- Use a Gold IRA. ...
- Physical Gold. ...
- ETFs. ...
- Mining Stocks. ...
- Gold Futures.
The most standardized way of directly owning physical gold is by acquiring bullion bars. Before purchasing, buyers should research reputable dealers and check the bars' purity, form, size, and weight. Purchasing gold bars comes with extra costs, including storage, insurance, and a sales markup.
How to buy gold from bank? ›
Ans.
- Visit the nearest designated Union Bank branch and fill in the Gold Coin Application form. ...
- Mention the weight and the number of the coins required along with other relevant details.
- Submit the application along with the required amount.
Local jewelers and pawn shops provide a quick and straightforward option for selling your gold. They typically offer on-the-spot evaluations and immediate cash payments.
Does US government sell gold bars? ›
You can buy or sell precious metal bullion and coins from private dealers. The Fed neither buys nor sells precious metals. The United States Mint offers bullion through dealers.
How much is an ounce of gold? ›
First, have your gold bars assessed by a professional to verify their purity and weight. Next, research gold prices and potential buyers like reputable gold dealers, pawn shops, or online marketplaces. Once you choose a buyer, negotiate the price, complete the sale, and ensure you receive the payment securely.
Is it OK to buy gold in cash? ›
You can purchase gold in any amount using cash. However, if your purchase exceeds $10,000 in value using cash or its equivalents, you must complete Form 8300. This form asks for essential details like your name, address, and social security number.
How to buy gold for beginners? ›
How Do Beginners Buy Gold? Mutual funds and ETFs are probably the smartest options for beginners. Each share of these securities represents a fixed amount of gold, and you can easily buy or sell these funds in your brokerage account or retirement account.
Should I keep my money in the bank or buy gold? ›
Is it better to hold gold or cash? For short-term needs, cash is better due to its unmatched liquidity. For long-term buy-and-hold investments, gold is preferable to protect against inflation and provide portfolio diversification.
What is the safest way to buy and store gold? ›
When you're investing in gold bars, do choose a reputable and secure storage facility. This could be a bank's safe deposit box, a private vault or a specialized storage service, all of which offer the type of security you need in order to keep your gold investment safe.
How much is a gold bar at the bank? ›
Current Gold Bar Price by Weight
| Weight | Price |
|---|
| 1 gram | $69.77 |
| 1 ounce | $2,170.02 |
| 1 kilogram | $69,767.76 |
Throughout history, gold has been seen as a special and valuable commodity. Today, owning gold can act as a hedge against inflation and deflation alike, as well as a good portfolio diversifier. As a global store of value, gold can also provide financial cover during geopolitical and macroeconomic uncertainty.
Can I buy gold bars from the US government? ›
You can buy or sell precious metal bullion and coins from private dealers. The Fed neither buys nor sells precious metals. The United States Mint offers bullion through dealers.
