Central banks are among the largest buyers of gold and have some of the largest gold holdings, 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. However, you can readily purchase gold from reputable precious metals companies.
Can You Buy Gold From a Bank?
Around the world, central banks buy large amounts of gold. As of the third quarter of 2021, the United States, Germany, the International Monetary Fund, Italy, and France owned the greatest amount of gold held in reserves, according to the World Gold Council.
A central bank, which controls its country’s monetary policy, may purchase gold for several reasons. For instance, central banks such as the U.S. Federal Reserve, European Central Bank, Bank of England, and Bank of Japan buy gold to help manage risk, promote stability, provide a hedge against the U.S. dollar, and supply a hedge against inflation.
Can you purchase gold coins—or any other precious metals—from a bank? Technically, yes, at some banks, but you may want to shop elsewhere. While you might want to buy gold for some of the same reasons that central banks do, shopping for gold through a bank is not that simple.
Some U.S. banks do sell gold bars, gold coins as well as silver coins, but the vast majority of U.S. banks do not make gold or silver available to the public. Banks usually avoid selling precious metals because of their price fluctuations. And even if a bank does sell gold or silver, their inventories typically don’t measure up to the size and variety of inventory found at precious metals companies and other sellers.
What Is the Easiest Way to Buy Gold?
Heading to your neighborhood bank is definitely not the easiest way to buy gold. Instead, the easiest way to buy gold is through online dealers or over the phone from a highly rated precious metals company.
A local dealer in precious metals can sell pure gold and silver assets to you. But you’ll be responsible for carting the metals from the shop to your home or another location.
Another alternative is buying from a reputable dealer like U.S. Money Reserve. Online sellers offer competitive prices and ship precious metals directly to you, eliminating the need for you to carry physical gold or silver with you.
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Benefits of Buying Precious Metals Online
Aside from the ability to send precious metals directly to you, a precious metals dealer that sells online may be able to:
- Ship your precious metals to a secure vault rather than to your home. (Storing precious metals in an off-site vault offers an extra layer of security.)
- Provide bars and allow you to buy gold coins online that are produced by a variety of mints from around the world.
- Supply precious metals advice from an array of knowledgeable specialists.
- Give you the chance to shop for precious metals privately and on your own schedule.
- Help you set up a self-directed precious metals IRA at the same time as you make a purchase for physical delivery, enabling you to hold precious metals and other alternative assets in a retirement account.
The easiest way to buy gold is not through a bank. It’s through a reputable precious metals company online or over the phone. Not only can you shop on your own time, but you also can shop from a wider selection of products such as gold bullion and make your purchase precisely when you want to. Browse U.S. Money Reserve’s catalog of gold and silver now or call for even more inventory options.
Purchasing gold or silver from a bank involves understanding current market prices and the premiums banks charge, which are often higher than those of other sellers, according to Investopedia. Authenticity and purity are critical factors, as they greatly influence the value of precious metals.
The process begins by inquiring about the availability and prices of gold or silver. Necessary documentation, such as identification and financial details, must be completed. Payment is typically made via bank transfer or cash. Finally, the precious metals are collected either in person or through secure delivery.
Secure storage options include bank safety deposit boxes or specialized precious metals storage facilities, which offer high levels of security and insurance against theft or damage. You may want to consider a high-quality safe, and adequate insurance coverage for home storage.
Alternatives include buying from online bullion dealers, local coin shops, or precious metals exchanges, which often provide more competitive prices and a wider product range. Investing in gold or silver ETFs or mining stocks offers indirect methods of investing in precious metals.
Purchasing precious metals from banks may involve fees, including a premium over the spot price, transaction fees, and possibly storage fees if the metals are stored with the bank. Inquiring about all potential fees before completing the purchase helps avoid surprises.
