Brandon Lee
Gold coins are a great way to invest in a tangible asset that isn't linked to any corporation or government. While there are many ways to buy gold coins, such as online or at a physical store, some people prefer to buy them from a bank. This is because banks are federal institutions that are accountable to the public, making them a reliable option. However, not all banks sell gold coins, and those that do often charge higher premiums than online dealers. To find out if a bank sells gold coins, you may need to visit their physical location or give them a call.
| Characteristics | Values |
|---|---|
| Banks that sell gold coins | Some banks sell gold coins, but they are often hard to find. Banks in small towns may be more likely to buy and sell precious metals. |
| Buying process | Visit the bank's physical location or call them to find out if they sell gold coins. Compare prices between banks and online retailers before purchasing. |
| Advantages of buying from banks | Banks are federal institutions accountable to the public, so buying bullion from a local bank may be more reliable than searching online. |
| Disadvantages of buying from banks | Banks may charge higher premiums than online dealers and usually have a smaller inventory. |
| Gold coin types | Silver Dollar Coins, Gold Dollar Coins, American Eagle Gold Bullion Coin, Canadian Gold Maple Leaf, Krugerrand |
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What You'll Learn
Research banks that sell gold coins
While some banks sell gold coins, they can be challenging to find. Most banks don't advertise that they deal in precious metals, and many no longer offer trading services, instead acting as custodians for their clients.
If you're in the US, you may be out of luck, as most gold bullion is sold to non-bank distributors, and all retail customers must go through an authorised purchaser. However, some banks in Switzerland still offer trading services.
If you're set on buying gold coins from a bank, you'll need to do some research. Some banks advertise that they sell gold on their websites, but most don't make this information public, so you may need to visit a bank's physical location to find out. Banks in small towns are more likely to buy and sell precious metals, as they are incentivised to offer a wider variety of services.
Some banks that sell gold coins include:
- TD Canada Trust
- Banks in Switzerland
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Compare prices and premiums
When it comes to buying gold coins, it is important to compare prices and premiums to ensure you get the best deal. Gold coins are priced based on their gold content and their collectability. The gold content is straightforward, but the collectability premium can vary. For example, gold coins with the same gold content can have very different market values based on factors like when and where they were minted, and how many coins of that particular type are available.
A 'coin premium' is the additional cost of a bullion coin above the market value of the gold it contains. This additional cost covers manufacturing, distribution, and administration costs, as well as the wholesaler and retailer's profit margins. The level of a coin's availability (supply) versus its popularity (demand) can also influence the premium. In some cases, high demand for a specific coin type can drive its premium significantly higher than that of very similar coins.
Gold bars are generally more cost-efficient to purchase than gold coins, as bars carry lower premiums. This is because bars have no face value, are not backed by government mints, are rarely considered collectibles, and are easier to produce. However, if you are set on buying gold coins, it is worth noting that bullion coins generally have lower premiums than collectible or numismatic coins due to their higher mintage and lower relative scarcity.
When comparing prices, it is worth considering that some banks may charge higher premiums than online gold dealers. This is because banks often have smaller inventories and higher overheads than dedicated online dealers. However, buying from a bank may offer more security and peace of mind, as banks are federal institutions accountable to the public.
To find a bank that sells gold coins, you may need to do some research. Some banks advertise this service on their websites, but most do not, so you may need to visit a bank's physical location to find out. Banks in small towns may be more likely to buy and sell precious metals, as they are incentivized to offer a wider range of services to their local clientele.
When buying gold coins, consider the following tips to get the best price:
- Shop around and compare prices between local and online dealers. Online dealers often have larger inventories and lower premiums due to reduced overheads.
- Buy in bulk whenever possible, as larger purchases may offer a better per-ounce price due to similar production costs.
- Pay by check or bank wire to avoid higher premiums charged for credit card purchases to cover processing fees.
- Compare the premiums offered by different banks and dealers, as these can vary significantly.
- Inquire about discounted premiums for existing customers.
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Check the purity, weight and authenticity of the gold
Checking the purity, weight, and authenticity of gold is crucial when purchasing gold coins from a bank. Here are some detailed steps to ensure you get genuine gold coins:
Purity:
Start by examining the surface of the gold coin closely. Look for any markings, engravings, or stamps that indicate its purity. A hallmark, which is a stamp or engraving, is a common way to identify the purity and authenticity of gold. Common hallmarks include "GF" or "HGP," indicating gold plating, while "24K" or other numbers signify real gold. The absence of these markings does not necessarily mean the gold is impure, as some genuine gold pieces are unmarked or have worn-off markings.
Weight:
Determining the weight of gold coins is essential to ensure you receive the correct amount. Gold is measured in troy ounces, with 1 troy ounce equalling 31.1034768 grams. You can use a gold weight calculator to estimate the weight of your gold coins. These calculators consider the dimensions and shape of the coins to provide an accurate weight measurement. Additionally, you can use a scale to directly measure the weight of your gold coins.
Authenticity:
There are several simple tests you can perform to check the authenticity of gold coins:
- Magnet Test: Gold is non-magnetic, so if a strong magnet, such as a neodymium magnet, attracts the coin, it is likely impure or fake.
- Float Test: Place the gold coin in a glass of water. Genuine gold has a high density and will sink.
- Vinegar Test: Apply a few drops of vinegar to the gold coin and wait for about 15 minutes. If the gold is genuine, it will not change colour.
- Skin Discolouration Test: Real gold does not react with the sweat or oil on your skin. If you notice black or green marks on your skin after handling the gold coin, it indicates the presence of other metals.
- Ceramic Test: Rub the gold coin against an unglazed ceramic surface. Genuine gold will leave black streaks on the ceramic.
Remember, these at-home tests provide preliminary assessments, and for a more accurate determination of purity, weight, and authenticity, consider seeking a professional assay or a certified gemologist's opinion.
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Visit a physical store to inspect the gold
When buying gold coins, visiting a physical store is a great way to inspect the gold in person and ensure you're getting a high-quality product. Here are some advantages and key considerations when visiting a physical store to buy gold coins:
- Authenticity and Purity Checks: When you visit a store, you can physically examine the gold coins and request information about their authenticity and purity. Reputable dealers will provide you with detailed specifications and may even offer certificates of authenticity. You can also perform simple DIY tests, such as the magnet test, to quickly assess if the gold is genuine.
- In-person Assistance and Expertise: Staff at physical stores can provide valuable insights and guidance. They can answer your questions about the gold's origin, weight, purity, and any other factors influencing its value. Their expertise can help you make a more informed purchasing decision.
- Reputation and Trust: Buying gold coins from a physical store allows you to assess the dealer's reputation and trustworthiness firsthand. Look for established stores with a solid track record and positive reviews. Dealing with reputable sources reduces the risk of purchasing counterfeit or impure gold.
- Price Comparison and Spot Price Awareness: Before visiting a physical store, it's beneficial to research and compare prices between several retailers. This includes checking the current spot price of gold, which is the base price for immediate delivery. By understanding the spot price, you can better assess if the dealer's premium, or markup, is reasonable and competitive.
- Limited Inventory and Online Alternatives: While physical stores offer advantages, it's worth noting that their inventory may be limited compared to online dealers. Online retailers often have a wider selection and competitive prices due to lower overhead costs. If you can't find what you're looking for at a physical store or want to explore more options, consider expanding your search to include reputable online dealers.
- Bank Options: Depending on your location, some banks may offer gold coins for sale. However, this practice is becoming less common, and banks typically don't advertise these services publicly. If you're interested in purchasing gold coins from a bank, it's advisable to contact your bank of choice directly to inquire about their policies and availability.
Remember, when visiting a physical store to inspect gold coins, it's essential to balance your options, trust your instincts, and only proceed with a purchase when you feel confident in the dealer's reputation and the quality of the gold on offer.
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Buy gold coins online
While it is possible to buy gold coins from banks, it is becoming less common. Most banks don't openly advertise that they sell precious metals, and you may need to visit a bank's physical location to find out if they have gold coins for sale. Banks in small towns may be more likely to buy and sell precious metals.
If you're looking to buy gold coins online, there are several options available. Some of the biggest online marketplaces, including eBay, Etsy, and Facebook Marketplace, allow private sellers to sell gold bullion coins. There are also dedicated online gold dealers, such as GoldCore and JM Bullion, which offer a range of gold bullion coins and bars. When buying gold coins online, it is important to ensure that the website is safe and secure.
To buy gold coins online, you will first need to create an account with the chosen marketplace or dealer. Once your account is active, you will need to add funds to it before you can start trading. This can usually be done via bank transfer or by using a credit/debit card. It is important to compare the premiums offered by different dealers before completing a transaction, as these can vary.
Some of the most popular gold coins available online include the American Gold Eagle, the American Gold Buffalo, the British Gold Britannia, and the South African Gold Krugerrand. Gold bullion bars are also available online and offer greater diversity and affordability compared to gold coins. When buying gold bullion bars, it is important to look for certified assayers who can guarantee the quality, purity, and weight of the product.
Frequently asked questions
You can buy gold coins from banks, online retailers, physical stores, jewellers, or private sellers. Banks that sell gold coins often do not advertise this, so you may need to visit a bank's physical location to find out. Online retailers include Malabar Gold and Diamonds, GoldCore, EverBank, and Hero Bullion.
When evaluating physical gold, consider its purity, weight, authenticity, and premium over the spot price. Investment-grade gold must be at least 99.99% pure. The size and weight of the gold you buy will affect its cost and how easy it is to store. You can perform a DIY test, such as the magnet test, ping test, or float test, to detect if the gold is fake or impure. Compare multiple sellers' prices against the current spot price of gold to ensure you get a fair deal.
Banks are federal institutions accountable to the public, so buying gold from a bank may be more reliable than buying online. Banks can also provide high-security storage solutions for bullion investments.
Banks that sell gold coins often charge higher premiums than online gold dealers. Banks also usually stock a smaller inventory than dedicated gold dealers.
