Most smart investors are aware of the fact that investing in gold is a good choice. The yellow metal gives good gains in a couple of years and is usually a low-risk investment. If you look at the pricing trends of the last few decades, you will know that the prices of gold only increase with time. In fact, gold performs better in a crisis like a stock market crash or high inflation. Hence, it’s a smart investment. If you also hope to invest in gold and are looking for the answer to where to buy it, you should know that there are many options available. One of those options is to buy gold from a bank. You can do it after checking gold dollar price live. But should you do it? Read on to know.
Why Should You Buy Gold from a Bank?
Many banks offer you gold products and claim that it’s easy to invest some money every month and build an investment portfolio. People who are not too interested in investing or don’t have much exposure to it get lured by such words and often invest. They don’t realize that investing in gold is a serious business and buying it from the bank is the least desirable option for most smart investors as it’s quite expensive. So, unless you have huge piles of cash lying around, you should not invest in gold offered by banks.
Do All Banks Sell Gold?
No, there are only a limited number of banks that are authorized to sell gold. In addition, most banks don’t sell physical gold but digital gold only. So, if you want to buy gold from a bank, you need to call them and confirm whether they sell gold or not. You can also walk into a bank and ask whether they sell gold or not and if they do, in which form.
They are unaware that gold investing is a serious business and that purchasing it from a bank is the least desirable option for most savvy investors. As a result, we’ve compiled a list of reasons why you shouldn’t buy gold coins from banks:
- Purchasing price is higher than market price: If you are purchasing gold coins solely for investment purposes, it is not good to purchase a commodity at a higher price than the market price. Banks charge 7-10% more than market rates when you buy gold coins. Buying gold from a reputable jeweler is thus preferable. Many reputable jewelers will guarantee the purity of the gold you are purchasing without charging you a premium or making additional charges.
- Lack of trained personnel to verify gold’s authenticity: When banks acquire gold coins from other countries, all they search for is a certificate declaring the purity of the metal. No one at the bank can verify the authenticity of the gold coins you intend to purchase. As a result, you can never be sure of its quality because no one has tested the gold at the banks.
- Banks will not accept gold coins back: You will be unable to sell your gold coins for cash if you return them to a bank. The Reserve Bank has enacted a rule that prohibits banks from accepting gold coins, even if the customer purchased the coins from them. You’ll have to sell your gold coins to a jeweler or a pawn shop. In addition, the jeweler will accept your gold coins at market value, which is always less than the value you paid for them at the bank.
- Gold is difficult to cash: Let’s say you bought gold coins from a bank and now want to cash them. You will be in a lot of trouble in such a situation. It is because banks do not return gold. If you try to sell them to a reputable jeweler, there’s a good chance they won’t accept them. Even if one out of every ten jewelers wants to buy your gold, you’ll get a lower selling price than when you bought the gold coins.
- The selling price is less than the purchase price: Banks set a higher selling price for gold coins. They charge a 7-10% premium on gold coins, even though the making costs are almost non-existent. As a result, the buyer pays a higher price for the same purity level of gold than the market price. So, when you sell gold coins in the market, you can’t leverage the offers because there aren’t many of them. Second, you get a much better deal than buying gold coins.
Which is a Better Option Than Buying Gold from a Bank?
If you want to buy gold coins or gold bars online, a name you can easily trust is The New York Gold Company. We are a reputed gold and other precious metals dealer who offers a wide variety of products sourced from reputed mints worldwide. All the products we offer pass stringent quality tests and are excellent for investment purposes. They are also well-packaged and can be sent to your location in discreet packing.
We have an impressive reputation. For more than 30 years, we have provided quality products to our customers. As a result, most of our customers come back and stay loyal. Thanks to our ethical business practices, we have also earned an A+ rating from the Better Business Bureau. It speaks a lot about the kind of brand we are and what you can expect from us. So, you can expect the best products, the best prices, and the best customer service.
Our executives are there to guide you when you are unsure which products would be right for you. They can help you shortlist products that fit your budget and meet the requirements. When ordering, you can order via the website, phone, or walk into the Jackson Heights store. We are here to help with your investment needs without charging a heavy premium as banks do. So, The New York Gold Company is better than banks to buy gold. You can visit us, make a purchase, and see that for yourself. We promise an excellent purchase experience every time!