How To Buy Gold Coins From Banks: What You Need To Know

If you’re looking into buying gold, coins are some of the most popular gold products on the market. The visual appeal, wide recognition, and easy liquidity of gold coins make them attractive to new and seasoned investors alike. But not everyone has experience buying the precious metal.

You can purchase gold coins from several reputable sources, including banks. Here’s how to buy gold coins from banks and what to consider before choosing this option.

How To Purchase Gold Coins Safely

When investing in gold, it’s crucial to ensure you’re purchasing a genuine, certified, and high-purity product. Security is one of the most attractive aspects for people who choose to purchase gold coins from a bank.

Banks are reputable financial institutions that source their gold bullion directly from recognized dealers or the U.S. Mint and check their gold holdings for authenticity. If you buy gold bars from banks or choose a bank as your source of gold coins, you minimize the chance of getting scammed or purchasing counterfeit gold. These risks are always present when acquiring gold from pawn shops or individual sellers.

Know the Market Price

magnifying glass and twenty dollars on table

Consider the market price when looking into how to buy gold coins from banks. To begin with, purchasing gold coins involves a higher premium over gold spot prices compared to gold bars or rounds. Investors are often willing to pay extra for the appeal and high marketability of legal tender gold coins.

Buying gold coins from a bank typically means paying 7% to 10% above the market price. This adds up to a lot of money if you buy a significant amount of gold, so be sure to check the price range for any product you consider buying and compare it with what any specific bank offers.

Research and Compare Options

Not all banks sell physical gold. Moreover, for security reasons, even banks that hold and trade in gold bullion avoid advertising it. You may need to inquire directly from your bank or other banks in your area to find out which banks trade in gold coins and bars.

Some banks may require you to become a member before they sell you gold. Add any membership fees when calculating the premium you’d pay for gold coins. Above all, don’t rush to buy from the first bank that offers to sell you gold bullion; rather, compare all your available options.

How To Buy Gold Coins From Banks: The Practical Steps

To recap, these are the steps you should take to purchase gold coins from banks:

  1. Inquire whether the bank sells physical gold, which products they have available, and their procedures for buying gold coins and bars
  2. Compare the bank’s pricing on gold coins to the market price and the current gold spot price
  3. Purchase your gold coins and ensure you obtain the proper certificates
  4. Choose a safe storage option for your gold

The Drawbacks of Buying Gold Coins From Banks

dollar symbol with up and down arrows on wooden cubes

Price is one obvious disadvantage when considering purchasing gold bullion from a bank. Yes, buying gold from a reputable local bank is convenient and safe, but not to the extent that it justifies such a high premium.

Also, banks don’t take gold coins back. If you want to turn your gold investment into cash, you’ll need to look for a private buyer. Moreover, you’ll almost always lose when selling your gold since, unlike banks, you’ll typically sell at or even below the market price.

Consider Online Dealers

Purchasing gold coins from a reputable online dealer like Oxford Gold Group is just as safe as buying from a bank, with the advantage of much better prices and, often, a wider choice of coins. The key is buying from an established dealer to ensure you get authentic, certified, high-purity gold products. Don’t be tempted to buy from little-known traders whose reputation you can’t verify.

Taking the following precautions will help you choose a legitimate dealer:

  • Look up their online reputation and check out customer reviews
  • Inquire about relevant certifications, licenses, and authentication documents for gold products
  • Compare their list prices to market prices
  • Ask about delivery options

Delivery and Guarantees

Reputable gold dealers offer secure, seamless shipping to your chosen location, usually within a few days for the continental U.S. The dealer should pack and ship your gold coins with reliable in-person delivery, and you should be able to track your package at all times.

What if you buy gold coins online and the package gets lost, damaged, or stolen in transit? Legitimate online dealers offer insurance on parcels, so you can expect a full refund or replacement in the event of loss or theft.

Storage Options for Physical Gold

open safe deposit box with key inside bank vault

Before you jump into purchasing physical gold, consider your storage options. You should store your coins or bullion bars in a secure location to keep your precious metal safe.

You may store your gold coins or bars in the following locations:

  • An at-home safe. Home storage appeals to many investors who want to have constant access to their bullion. The main drawback of storing physical gold at home is its vulnerability to theft and natural disasters since standard homeowners’ insurance policies usually don’t cover precious metals.
  • Safe deposit box. A safe deposit box in a bank is a secure, reliable storage method for gold coins. However, banks don’t insure the contents of safe deposit boxes, so you’ll still need to purchase a separate policy for your gold bullion.
  • Vault storage. If you’re planning to buy a significant amount of physical gold, it may be best to store your bullion in a precious metals depository vault. Such depositories offer stringent security, optimal environmental conditions for storing metals, and appropriate insurance coverage.

Which Gold Coins Should You Purchase?

So, which gold coins should you buy? As an investor, your safest option would be to purchase high-purity, legal tender gold coins from a widely recognized mint. Some popular bullion coins include:

  • The American Gold Eagle. Minted since 1986, American Gold Eagles are commonly traded gold coins containing 91.67% gold (1 troy ounce of pure gold).
  • The Canadian Maple Leaf. The Canadian Maple Leaf is a beautifully designed coin containing 1 troy ounce of 999.9 (99.99%) pure gold.
  • The South African Krugerrand. One of the most widely owned bullion coins in the world, South African Krugerrands weigh 1.090 troy ounces and contain 91.667% gold.
  • The Gold Austrian Philharmonic. A stunning, classic gold bullion coin, the Gold Austrian Philharmonic has a gross weight of 1 troy ounce and contains 999.9 pure gold.
  • The North American Bald Eagle. North American Bald Eagles are small and beautiful 999.9 gold coins from the Royal Canadian Mint, weighing 1/10 troy ounce (3.14 gr).

Browse a Wide Selection of Quality Gold Products at Oxford Gold Group

At Oxford Gold Group, we offer high-quality gold coins, including popular bullion coins like the American Gold Eagle, the Canadian Maple Leaf, and British Royal Mint coins. Feel free to browse our selection of gold products and enjoy competitive prices and safe delivery options.

Interested in learning more about investing in physical gold beyond how to buy gold coins from banks? Claim your free copy of our practical Precious Metals Investment Guide.

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