The majority of smart investors know that gold investing is a wise choice. Yellow metal is a good investment that can yield high returns in just a few years. You can see from the price trends over the past few decades that gold prices only rise with time. Gold actually performs much better during a time of crisis, such as a crash in the stock market or high inflation. It’s therefore a wise investment. You have many choices if you want to purchase gold. You can buy gold at a bank. It is possible to do this after you have checked the live gold dollar price. Should you? Learn more about it.
Why Buy Gold From A Bank?
Many banks will offer gold and say that you can easily invest money each month to build an investment portfolio. Many people who don’t know much about investing, or aren’t interested in it at all, get tempted by these words. They invest. Most people don’t know that buying gold from a bank can be expensive and is not the best option. If you don’t have a lot of money lying around you shouldn’t invest in the gold that banks offer.
Does every bank sell gold?
There are only a few banks who are allowed to sell gold. Most banks do not sell gold in its physical form, but only digital gold. If you are interested in buying gold, it is best to contact the bank and ask if they have gold for sale. If you walk into the bank, ask if gold is sold and in what form.
Most people don’t realize that buying gold coins from banks is not a good idea. We’ve put together a list to show you why it’s not a good idea to buy gold from banks.
- The price of the gold coin is more than what is being sold at market rate: It is bad to buy a product for a price higher than that which is currently on offer. When you purchase gold coins, banks charge 7-10% higher than the market rate. It is therefore preferable to buy gold from a jeweler who has a good reputation. Most reputable jewelers guarantee that the gold they sell is pure without adding any additional fees or charging a premium.
- Insufficiently trained staff to confirm gold authenticity. Banks only look for a purity certificate when they buy gold coins in other countries. The bank cannot verify that the coins are authentic. You can’t be certain of the quality, because the gold hasn’t been tested at banks.
- The banks will not take back gold coins: If you give your coins to the bank, they will not be exchanged for money. Reserve Bank of India has passed a law that prevents banks from taking back gold coins even when the coin was purchased by the bank. Your gold coins will have to be sold to a jeweler, or to a pawnshop. The jeweler accepts your coins for market value which is usually less than what you paid at the bank.
- It is hard to get cash for gold: Imagine you have bought coins of gold from the bank. In such a case, you will have a difficult time. This is due to the fact that banks don’t return gold. You may not be able to get a jeweler to accept your gold coins if you attempt to sell to them. You’ll still get less money for your gold even if only one jeweler out of ten wants to purchase it.
- A lower selling price than the original purchase price. Gold coins are sold at a premium by banks. Gold coins are sold at a premium of 7-10%, despite the fact that their production costs are minimal. The buyer is therefore paying a premium for gold of the same purity than what the market would normally charge. When you are selling gold coins on the market you cannot leverage offers as there is a limited number of them. You get a better deal by buying gold bars than coins.
What is the Better Alternative to Buying Gold at a Bank
The Cash for Gold Company is a name that you can trust if you are looking to purchase gold coins and bars on the internet. Our company is a gold dealer that offers products from the world’s most reputable mints. Our products are all excellent investments and have passed stringent tests of quality. The products are well packaged and sent discreetly to you.
Our reputation is impressive. Since more than thirty years, our company has provided high-quality products to its customers. Most of our clients return and remain loyal. We have received an A+ from the Better Business Bureau for our ethical practices. This speaks volumes about our brand and the service you can expect. You can therefore expect to receive the highest quality products at the lowest prices and with the most excellent customer service.
When you’re unsure of which product is right for you, our executives can help you. You can shortlist the products which fit within your budget. You can place orders via phone or the Jackson Heights shop. Our goal is to assist you with all your investments without charging the high premiums that banks charge. It is therefore better to purchase gold from The Cash for Gold Company than to go through a bank. Visit us and make an order to see for yourself. Every time, we promise a great shopping experience!