Gold has often been seen as a safe-haven from tumultuous markets. Gold's value has been steadily increasing over the years and it's a great investment for those who are worried about inflation. If you're interested in getting some gold for yourself, you may be wondering if banks sell gold.
It's a great precious metals question with an interesting answer. So continue reading and we'll walk you through everything you need to know about banks and gold.
Do Banks Sell Gold?
Although selling gold may have been more common in the earlier days of America, very few banks today sell gold. In fact, buying gold from a bank is considered a very unwise purchase. That's because, when a bank sells you gold and then stores it for you, it's usually considered unallocated storage.
So you never actually own gold. Instead, you become a creditor and the bank essentially owes you gold. But if that bank ran out of business, your gold wouldn't be insured the same way that cash deposits are.
If a bank does have physical gold in its possession, the bank technically owns the gold. And if they run out of cash, they can use the gold as they see fit. If you wanted the bank to store your unallocated gold, it would probably cost you nothing.
If, however, you wanted them to store your allocated gold in a safety deposit box, they would likely charge you a 2% fee for storage. This is because your allocated gold is useless to a bank.
Where to Buy Gold
You should never purchase gold from a bank. Instead, you should buy gold from reputable gold dealers. When you buy gold as an investment, you want it to be pure gold.
Gold should have 99% purity. The other 1% is an alloy, like copper or silver, and it's needed for smelting purposes.
You should also understand how coins differ from bars. Gold coins aren't always 99% pure. However, they can still be more valuable than bars because they are viewed as collector's items. While these may be more difficult to value, they can go up significantly over time.
How to Store Gold
When possible, you should keep your gold coins stored in their original containers. As we mentioned earlier, it can end up costing you to store gold in a safety deposit box at a bank. If you have no other options, then you can go that route.
Ideally, you would have a reliable safe in your home where you can keep valuables, including your gold. Some people, however, like to keep their gold coins on display. Which you can also do, although you may want them in some kind of protective glass case.
The Importance of Knowing Where to Buy Gold
While banks can sell gold sometimes, it's not a good idea to buy it from them. Purchasing gold from trustworthy gold dealers is definitely the way to go. Keep that in mind the next time you're looking to invest in precious metals like gold.
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