Gold is known for protecting your money when prices go up, the economy gets rocky, or the value of money drops. That’s why lots of investors want to get their hands on it. Considering the value that comes with gold bars, you want to get yours from a safe place such as a bank like Bank of America. But one question pops “Can you buy gold bars from Bank of America?”
So, in this article, I’m going to explore that and also share some tips on where you can buy gold bars and even make some profits by selling them.
Can I Buy Gold Bars From Bank of America?
Let’s explain simply, you can’t buy gold bars from Bank of America. They, along with many other big banks in the US, don’t handle precious metals directly. They mainly deal with things like mortgages, loans, credit cards, and banking accounts.
In the past, some banks used to offer precious metals like gold and silver, but not anymore. Dealing with these metals requires complicated storage, comes with liability concerns, and the prices can be unpredictable. So, don’t expect to find gold bars for sale at your local Bank of America branch.
Can You Buy Gold from the Bank?
Buying gold directly from a bank in the United States is not something you’ll come across often. Unlike some countries like Switzerland, it’s not a common practice here. As mentioned earlier, banks in the U.S. mostly focus on other financial services.
Occasionally, you might find a few regional or community banks that offer gold coins, especially those made by the U.S. government. But be cautious because the price can be higher than the regular market rates. These banks might add a premium to make a profit, which means you’ll end up paying more than you should.
Keep in mind that banks usually won’t buy back gold from you. So, if you want to sell it later, you’ll need to find a different place to do so.
Best Place to Buy Gold Bars
You now know that you can’t buy gold bars from Bank of America or any other bank in the U.S. So you need to go somewhere else.
Now, when it comes to buying gold bars, you want the best place that’s reliable, secure, and offers good value. Several factors can determine the best place for you personally, including the dealer’s reputation, the range of products offered, and the overall buying experience. There are several options to consider, each with its pros and cons:
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Online Dealers
Many investors prefer buying gold bars online these days. Reputable dealers like Goldco, APMEX, SD Bullion, Augusta Precious Metals and JM Bullion offer a wide selection, competitive prices, and the convenience of shopping from home. They provide detailed information to help you make informed choices, and customer service is available for any questions.
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Mints
Buying directly from mints like the U.S. Mint or the Royal Canadian Mint ensures authenticity, as they produce gold bars with guaranteed purity. Keep in mind, though, that their prices might be slightly higher due to this assurance.
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Local Coin Shops
Buying from local shops lets you inspect the gold in person and build a relationship with the dealer. Look for shops with good reputations and be prepared to negotiate for the best deal.
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Gold Shows or Conventions
These events are great for finding rare or collectible gold bars. Dealers from all over gather, offering a wide range of products. Just be sure to check the reputation of any dealer you’re interested in.
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Gold Brokers
These experts can give you personalized advice based on your investment goals. They have access to a variety of products and may offer competitive prices. However, make sure they are credible and licensed to deal with precious metals.
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Auctions
Online platforms like eBay host auctions for gold bars, but be cautious. Buying at auctions can be tricky, and you need to verify the gold’s authenticity and account for auction fees.
Each option has its benefits and drawbacks. Online dealers and mints offer a straightforward and secure experience, while gold brokers, gold shows, and local coin shops cater to those seeking more specialized services or unique pieces. In the end, research and careful consideration will lead you to the best place to buy gold bars that suits your needs and preferences.
What to Consider Before Buying Gold Bars
Before you go ahead and buy gold bars, there are some important things you should think about to make sure you’re making a wise and safe investment. Let me share with you some key considerations:
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Purity
The purity of the gold bar matters a lot. Look for bars with a purity of .9999, which means they’re 99.99% pure gold. These are often called ’24-karat gold bars.’ Always check the purity before buying.
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Brand/Mint
The producer of the gold bar matters too. Trusted mints like the Royal Canadian Mint, Perth Mint, and Swiss PAMP make gold bars that are widely recognized and accepted by dealers worldwide. Buying from reputable mints ensures you’re getting a quality product.
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Size and Weight
Gold bars come in different sizes and weights, ranging from 1 gram to 1 kilogram or even larger. Smaller bars are more affordable and easier to sell, but they usually have a higher premium over the spot price. Larger bars might be cheaper per ounce, but they could be harder to sell because of their higher value.
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Price
The price of a gold bar includes the spot price of gold and the premium charged by the dealer. Premiums can vary a lot between dealers and products, so it’s worth shopping around to find the best deal.
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Seller Reputation
Always buy from a reputable dealer. Check their credentials, read reviews, and see if they’re members of industry organizations. Buying from a trusted source reduces the risk of getting fake products or falling victim to scams.
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Buyback Policy
Check the dealer’s buyback policy before buying. Some dealers, like Goldco, offer to buy back the gold they sell, making the selling process easier for you. It’s essential to know this before you make a purchase.
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Liquidity
Liquidity refers to how easy it is to buy or sell an asset without affecting its price. Generally, smaller gold bars from well-known mints are more liquid because they’re widely accepted.
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Storage
Think about where you’ll keep your gold bars. Storing them at home can be risky due to theft or loss. Bank safety deposit boxes are an option, but they may not be insured for precious metals.
Professional storage facilities, called vaults, offer a secure solution and often come with insurance coverage. Some gold dealers also offer storage services for their customers.
What You Need to Buy and Sell Gold
If you’re thinking about diving into the gold buying and selling business, having the right equipment is essential. With the right tools and info, you can ensure the gold’s authenticity and also make sure you get the best deals. Let’s take a look at the essential equipment you’ll need and how to use them effectively.
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Gold Testing Kits
First things first, you need to make sure the gold is genuine. Gold testing kits come in handy here. They have testing solutions and tools to check the purity of the gold. The acid test method is quite common; where you apply different acids to the gold to see how it reacts. Just follow the instructions carefully to get accurate results.
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Scale and Weights
To figure out the gold’s value, you’ll need a precise scale. I recommend investing in a digital scale with gram accuracy. And don’t forget to get calibrated weights to check and calibrate the scale regularly. Keep your scale in a clean and stable spot to keep it accurate.
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Magnifying Loupe
For a closer look at the gold’s details, a magnifying loupe is perfect. It’s a small handheld device that lets you examine the gold closely. You can spot any imperfections or irregularities that might affect the gold’s value. Aim for a loupe with at least 10x magnification for a clear view.
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Gold Acid-Test Touchstone
A touchstone is like a flat stone or ceramic surface where you do the acid testing. You put a drop of acid on it and gently rub the gold against it to create a streak. Then, compare the color of the streak to a reference chart to know the gold’s purity level accurately.
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Melting Furnace
If you’re planning to work with larger amounts of gold or refine it, a melting furnace comes in handy. It helps melt the gold into molds to make bars or other shapes. But be careful, make sure to have the proper safety gear, and follow the manufacturer’s instructions for safe use.
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Safety Gear
Gold work can involve some risks, like dealing with toxic chemicals or high temperatures. To protect yourself, get the right safety gear, including gloves, goggles, and protective clothing.
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Security Measures
Since gold is valuable, you need to prioritize security to protect your inventory and assets. Installing a good security system with cameras and alarms is a smart move. And consider getting insurance coverage to protect against potential losses.
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Be Professional
Being professional is the key, if you’re not sure about your skills yet, don’t worry. Start by testing the jewelry you already have. It’s a great way to gain confidence before you dive in head-on.
Frequently asked questions
Can I buy gold from Chase Bank?
No, just like the Bank of America and many other US banks, you cannot buy gold from Chase Bank.
How to buy a gold bar in US?
You have a few options to purchase gold bars. You can buy them from dealers, individuals, or online through websites like JMBullion, APMEX, or SD Bullion. Just keep in mind that you might have to pay delivery fees and insurance to ensure the safe transportation of your gold.
How much is a bar of gold in weight?
The standard gold bar that central banks and bullion dealers trade internationally is called the Good Delivery bar. It has a nominal weight of 400 troy ounces (12.4 kilograms or 438.9 ounces).
Conclusion
That’s all for the topic “buy gold bars from Bank of America” I hope these insights have been helpful. Even though you can’t purchase the gold bars via the Bank of America or many other banks, don’t worry. There are plenty of reliable places where you can make such purchases as mentioned in this post. Investing in gold can be a wise move to diversify your portfolio and protect yourself from economic uncertainties. Just make sure you do your homework thoroughly and buy from trustworthy sources.
References
- Can you Buy Gold or Silver From a Bank? U.S Money Reserve
- How to Buy Gold. Forbes
- How to Buy Gold Bars. Investopedia
- Bank of America makes big bull call on gold, says this is the perfect time to own bullion ETFs. CNBC
