Buy Gold Bars from Bank of America?

Written By Colin Kuehn  |  Gold 

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The popularity of gold as an investment cannot be overemphasized. Its proven track record as a hedge against inflation, economic crises, and currency devaluation has led investors to continually seek avenues to purchase it. It's not surprising then that people often ask, "Can you buy gold bars from Bank of America?" This article will take a deep dive into this question, provide valuable insights into where you can purchase gold bars, and discuss why Goldco stands out as our top pick for buying precious metals.

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Does Bank of America Sell Gold Bars?

To put it simply, no, Bank of America does not sell gold bars. Bank of America, like most other major banks in the United States, does not deal directly with precious metals. As a financial institution, it mainly focuses on services like mortgages, loans, credit cards, and banking accounts.

It's important to note that while some banks used to offer precious metals like gold and silver, they've largely phased out these services due to complex storage requirements, liability issues, and the volatile nature of precious metal prices. So, if you were hoping to walk into your local Bank of America branch to buy gold bars, you would be disappointed.

Can You Buy Gold from the Bank?

six gold bars from the bank

In general, it's rare to find banks that sell gold bars or coins in the United States. While banks in some countries, like Switzerland, do provide such services, the practice is less common in the U.S. due to the reasons mentioned earlier.

That said, a few regional and community banks might occasionally offer gold coins, particularly those minted by the U.S. government, but the cost can often be higher than market rates. For instance, these banks might sell gold coins at a premium to make a profit, meaning you could end up paying more than necessary. It's also important to remember that banks typically do not buy back gold, leaving you to find a separate outlet if you wish to sell.

Best Place to Buy Gold Bars

When it comes to buying gold bars, finding the best place isn't just about convenience, it's also about ensuring reliability, security, and getting the best possible value. A number of factors can determine the best place for you personally, including the dealer's reputation, the range of products offered, and the overall buying experience. Here are some more in-depth recommendations:

  1. Online Dealers: In the digital age, buying gold bars online has become the go-to method for many investors. Reputable online dealers offer a wide range of products, competitive pricing, and the convenience of shopping from your own home. They provide extensive details about their offerings, helping you make an informed decision. Plus, they often have customer service teams available to answer questions. Some top online dealers include Goldco, Augusta Precious Metals, APMEX, JM Bullion, and SD Bullion. They all offer a large variety of gold bars, from different mints and in different sizes, to cater to varying needs of investors.
  2. Gold Brokers: Similar to online dealers, gold brokers have the advantage of expertise. They can provide tailored advice based on your investment goals and circumstances. Gold brokers can access a wide range of products and often have industry connections that can help you secure a competitive price. But it's crucial to check their credibility and ensure they are licensed to deal in precious metals.
  3. Mints: Buying gold directly from a mint, such as the U.S. Mint or the Royal Canadian Mint, can provide peace of mind regarding the gold's authenticity. These institutions produce gold bars and coins of guaranteed purity. However, keep in mind that mints often sell their products at a premium, so you might end up paying slightly more than the market rate for this assurance.
  4. Gold Shows or Conventions: These events can be a great place to buy gold bars, particularly if you're interested in rare or collectible pieces. Dealers from around the country gather at these events, offering a wide array of products. Plus, you have the opportunity to negotiate prices. Remember, though, it's essential to do your due diligence and verify the reputation of any dealer you're considering.
  5. Local Coin Shops: Local coin shops can offer the advantage of a personal relationship with the dealer and the opportunity to physically inspect the gold before purchase. Make sure the shop has a solid reputation and be prepared to negotiate to get the best deal.
  6. Auctions: Auctions, both online and physical, can be an exciting place to find unique gold bars or coins. Sites like eBay host many auctions for gold bars. However, buying at auctions can be tricky, especially for a novice. You need to account for the auction fees and be sure about the authenticity of the gold on offer.

Each of these buying avenues has its own set of pros and cons, so the best place to buy gold bars will depend on your individual preferences and circumstances. Online dealers and mints tend to offer the most straightforward and secure buying experience, while gold brokers, gold shows, and local coin shops might suit those looking for more specialized service or unique pieces. Ultimately, due diligence and research are your best tools for securing a good investment.

Why Goldco is Our Top Pick

a stack of silver coins

When it comes to investing in gold and other precious metals, finding a trustworthy and reliable dealer is essential. Our top pick in this domain is Goldco, a US-based firm specializing in precious metals IRAs. Here's why we've selected Goldco as our top choice for buying gold bars:

  1. Extensive Product Range: Goldco offers a wide variety of products, including gold bars of different weights and purities. This means you can select the product that best suits your investment goals and budget. Besides gold, they also deal in other precious metals like silver, platinum, and palladium.
  2. Exceptional Customer Service: Goldco has an impeccable reputation for customer service. Their team is knowledgeable, friendly, and readily available to assist with any questions or concerns. This can be especially beneficial for new investors who may need guidance throughout the purchasing process.
  3. Transparent Pricing: When you're investing in precious metals, you want to be sure you're getting a fair deal. Goldco is known for its transparent pricing. They provide clear information about the pricing of their products, including any premiums over the spot price of gold.
  4. IRA Specialists: Goldco is not just a precious metals dealer; they are specialists in precious metals IRAs. This means they can help you set up a self-directed IRA, allowing you to use pre-tax dollars to invest in gold. They guide you through the process, handle the necessary paperwork, and can even assist with "rollovers" from existing retirement accounts.
  5. Trustworthy and Reputable: Goldco is a highly respected company within the precious metals industry. They are accredited by the Better Business Bureau (BBB) and have a top rating from the Business Consumer Alliance (BCA). Numerous customer reviews highlight their professionalism and reliability.
  6. Educational Resources: Goldco provides an array of educational resources to its clients. They believe in empowering their customers with knowledge, and their website offers numerous guides and articles about investing in precious metals. This can be incredibly valuable, especially for those new to gold investment.
  7. Buyback Policy: Goldco has a robust buyback policy. This means that if you decide to sell your gold in the future, they offer a simple, hassle-free process to buy back your precious metals. This can provide significant peace of mind.

Goldco ticks all the boxes when it comes to a reliable, trustworthy, and user-friendly precious metals dealer. They stand out for their extensive product range, exceptional customer service, transparent pricing, and specialization in precious metals IRAs. Therefore, whether you are a seasoned investor or just starting your journey in the world of gold investment, Goldco is an excellent choice.

Factors to Consider Before Buying Gold Bars

Before making a purchase of gold bars, it's crucial to consider several factors to ensure you're making a safe, smart, and profitable investment. Here are some important considerations:

  1. Purity: One of the most important factors to consider is the purity of the gold bar. The highest standard is .9999, meaning it's 99.99% pure gold. Bars with this level of purity are often referred to as '24-karat gold bars.' Always verify the purity before making a purchase.

  2. Size and Weight: Gold bars come in various sizes and weights, starting from 1 gram to 1 kilogram and even larger. Smaller bars are typically more affordable and easier to sell or trade, but they generally come with a higher premium over the spot price. Larger bars, on the other hand, can be more cost-effective on a per-ounce basis, but may be harder to sell due to their high value.

  3. Brand/Mint: The producer of the gold bar can significantly impact its quality and acceptability in the market. Renowned mints like the Royal Canadian Mint, Perth Mint, and Swiss PAMP produce gold bars that are widely recognized and trusted by dealers worldwide. Buying bars from these reputable mints can give you confidence in the authenticity and quality of the product.

  4. Storage: Before buying gold bars, consider where you'll store them. Keeping gold bars at home can be risky due to theft or loss. Some people use bank safety deposit boxes, but these are typically not insured for precious metals. Professional storage facilities, also known as vaults, offer a secure solution, often with insurance coverage. Some gold dealers, like Goldco, offer storage solutions for their customers.

  5. Seller Reputation: Always buy from a reputable dealer. Check their credentials, read reviews, and look for memberships in industry organizations. Buying from a trusted source reduces the risk of receiving counterfeit products or becoming a victim of fraud.

  6. Price: The price of a gold bar consists of the spot price of gold and the premium charged by the dealer. The premium covers the costs of production, distribution, and a small profit margin for the dealer. Premiums can vary widely between dealers and products, so it's worth shopping around to find the best deal.

  7. Buyback Policy: A dealer's buyback policy can be crucial when you decide to sell your gold bars. Some dealers, like Goldco, offer to buy back the gold they sell, providing a hassle-free selling process. Check the buyback policy before making a purchase.

  8. Liquidity: Liquidity refers to how quickly and easily an asset can be bought or sold without affecting its price. In general, smaller gold bars and those from well-known mints are more liquid as they are easier to sell due to their wide acceptance.

By taking into account these factors, you can ensure that you're making a well-informed decision when buying gold bars. It's always a good idea to consult with a reputable dealer or a financial advisor to understand your options and choose the right strategy for your needs and goals.

Final Thoughts

While you can't buy gold bars from Bank of America or most other banks, there are plenty of reputable places to make such purchases, with Goldco standing out as our top pick.

Always remember to conduct thorough research before investing and consider factors like purity, size, storage, the reputation of the seller, and buyback policy.

Investing in gold can be a smart move to diversify your portfolio and protect against economic uncertainty. Just ensure that you're making informed decisions and buying from reputable sources. Happy investing!

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Last Updated: November 17, 2023