Many investors look toward gold coins and bars in order to diversify their holdings and preserve their wealth. Gold has an exceedingly limited supply, so the demand is almost always high and the value is constantly going up. By holding its value so well against inflation, gold is a good investment and offers insurance against global uncertainty. But the buying and selling of precious metals can be difficult to get into because of the lack of knowledge on your part and the different types of dealers in the business.
Gold is seen as a reliable long-term investment and store of wealth, and there are numerous ways in which you can add gold or other precious metals to your portfolio. The first place investors turn to–both for research and for buying–is the internet. But while some investors can locate hundreds of reliable and established bullion dealers online, others struggle with finding a reputable dealer that they trust. Buying online is difficult if you do not know the ins and outs of the gold trade, such as how gold prices work, what customer service you should expect, what delivery and storage options you should choose, etc.
So, while a viable option, buying and selling gold coins or bars online isn’t the best choice for those just getting into the gold trade. Instead, you should focus on going local with your gold buying. There are three options for buying and selling gold in your local area.
Do Bank Sell Gold? Can You Sell Gold Coins/Bars at a Bank?
The first is to find a local bullion dealer, which may or may not be easy depending on your location and proximity to a large city. Bullion dealers offer a safe and cost-effective method to buy precious metals. The second local option is to buy physical bullion at the bank. You might have always assumed that your bank only worked with dollars and cents, but many banks also offer bullion services. You might ask yourself, does TD bank sell gold? Does Scotiabank sell gold? Yes, you can buy and sell gold coins and bars at the bank, including TD Bank and Scotiabank. TD Precious Metals and Scotiabank Precious Metals both offer convenient access to gold, silver, and platinum. Scotiabank is actually one of the world’s largest dealers in precious metals, and their history dates back over three centuries. They deal in bullion, coins, and Scotiabank bar products for personal investment or keepsake purposes and advertise that precious metals can be ordered through your local branch.
It is true that you can buy gold from your local bank branch, but this comes with not a little bit of hassle in terms of both time and money. You might pay as much as 2-3 times the gold value by buying at a bank branch instead of researching other options. It will also take a good amount of time to ship gold to your local branch, since it is unlikely that they keep any on hand. It makes sense that many people choose to go to a bank to buy gold, especially when it is someone’s first foray into the area of precious metals.
While Scotiabank advertises its available gold products, other banks might not have the same variety. Some banks might let you buy smaller gold coins while others may only invest in large bars, hundreds of ounces in weight. Smaller coins will cost you more of a premium above spot price, but you will have a wider pool of potential buyers, and a more favorable price, should you need to sell. On the other hand, you will pay less of a premium on a gold bar because it has far less production cost, but you might have a hard time finding a buyer if you need to convert it back to cash.
Another point to consider when using a local bank is that you might be working with someone who doesn’t specialize in the field. If you are buying gold from your local bank, the person behind the counter might not be able to provide appropriate guidance into investing in gold and a detailed analysis on if it is right for your situation. In addition, your local branch might not be equipped to store your gold or will only store it for high annual storage fees. They might not be able to advise you on how best to protect your gold should you choose to store it at home. It all depends on the experience of the person with which you are working. Banks sell gold, but they also buy it as well. TD Bank notes that if you sell your precious metals back to them, you may be required to claim a capital gain or capital loss on such sales.
Buy Your Gold From a Reputable, Local Jeweler
Bullion dealers and banks are two of the three local gold buying and selling options. The third option is a local jeweler who carries bullion, such as Pinto Gold and Jewellery Buyers. Pinto’s services include buying and selling gold and silver coins and bars, and with 20 years of experience and thousands of satisfied customers, you cannot go wrong. One of the Toronto area’s most trusted gold buyers, Pinto offers top dollar for genuine gold that has been appraised by highly trained professionals. Such a store can advise you on the ins and outs of the precious metals industry, how to diversity your investments with gold coins and bars, and how to store your metals for safekeeping.
Working with a local cash for gold shop like Pinto Gold and Jewellery Buyers offers you a personalized, comfortable service right in your own backyard. You can easily conduct business face-to-face to ensure that you are getting the proper treatment and right price, no matter if you are buying or selling. Your local bank branch might sell gold, and it might offer you a sense of comfort since you conduct other business there. However, is that comfort worth 2-3x the normal price of gold? Is paying an exorbitant amount for a gold coin or gold bar on par with your investment strategy? Pinto Gold has been in business for over 20 years, and that hasn’t happened by chance. Banks are in the banking business. When you want to buy and sell gold, you need to go to a business specializing in gold, and that is Pinto Gold and Jewellery Buyers.