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These metals are different from other investments in that they aren't affected by inflation like cash is, and precious metals increase in value over an extended period.
Most financial advisors suggest that investors keep the metals for at least five to ten years to get a return. When searching for somewhere to buy gold bars specifically, many investors choose banks.
While anyone with financial resources can buy gold bars or coins from a bank, the question remains.
Should you really purchase precious metals from a bank?
Before we get started, investing your savings is a serious task. When it comes to adding precious metals to your portfolio, how do you know which companies to trust?
That is why we have researched every company in the industry and selected the very few with the highest customer service standards.
This way you can easily compare the best companies in the business, and choose one that fits your needs and investment goals.
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How to Buy Gold Bars from Your Bank
Clients start by opening an account with their preferred bank. Some banks require them to deposit money into a checking or savings account. When the customer is ready to buy gold bars, they will speak to an investment specialist at their bank and review the available gold bars.
The investment specialist will discuss details such as the prices, purity levels, and certificates for the gold bars. Once customers choose the number of gold bars they want, they transfer funds to the bank to pay for their investment.
If they set up a gold-funded IRA, the bank ships the gold bars to a depository, and the customer cannot access it until they reach retirement age. If the customer buys the gold bars outright, they can store them in the bank depository.
If any restrictions apply, the investment specialist will discuss these limitations with the customer. Restrictions could mean that the bank requires the customer to use the bank's preferred custodians or depository services when setting up an IRA.
Before customers complete these purchases, experts recommend that the clients check the current market price for the gold bars to ensure they get a fair price when buying gold bars from the bank.
What You Should Know About Buying Gold from a Bank
First, many consumers report that banks charge a higher price for gold than gold sellers, and according to them, some banks inflate the prices by up to ten percent over the current market price. While gold sellers have a markup for their precious metals, it is not as high as some banks may charge for gold bars.
Selling gold to get cash could become problematic for investors buying precious metals from banks or financial institutions. Banks follow a new rule that prevents them from repurchasing gold coins from their customers.
Without a buyback program, investors cannot cash in their gold to get cash, and with the higher markup at banks, they may not get a higher return and may incur a loss. Gold sellers have buyback programs and accept gold bars and coins from previous customers.
Another concern customers may face is obtaining gold with the appropriate purity levels. For example, the purity levels are vital to fund an individual retirement account. According to several reports, banks rely on certificates from their suppliers to substantiate that the gold meets the listed purity level.
Unfortunately, when selling their gold, investors won't get a high return if the metals aren't at the preferred purity level, even if they have certificates from the bank. Under the circumstances, they could lose a lot of money. In knowing this, again, should investors buy gold from a bank or look elsewhere?
Top 3 Alternatives to Buy Gold Bars Over a Bank
Banks highly recommend the following three gold sellers, and investors can find various precious metals through these dealers. Unlike banks, these gold sellers can provide a fairer price for different metals, and investors won't face inflated prices.
Many benefits are also available to customers who choose any of these three gold companies.
1. Goldco - Our Top Recommendation
The Los Angeles gold company, Goldco, was established in 2011, and the company offers gold sales via phone, online, and in-person. The gold dealer offers gold bars, coins, and other precious metal products.
Investors can purchase precious metals outright to store at home or set up a gold IRA to save for their golden years. Investors can also sell precious metals to Goldco even if they purchased their metals from the organization.
With precious metals purchased from Goldco, traders have more control over their investments. Again, they can buy the metals separately from an IRA and have the products shipped to their home. If they want to set up an IRA, the customer chooses their custodian and depository.
Goldco doesn't require anyone to use on-site custodians or the depository that the company prefers. However, their gold specialists can provide sound advice to investors about their options without obligation.
Goldco guarantees the purity level of their precious metals, and customers can get documentation that shows the purity level. Their products may have the purity level stamped on them.
Specific purity levels are required for investing in retirement accounts, and Goldco has many products that meet the IRS requirements for gold IRAs. In fact, they identify the products available for an IRA on their website.
Goldco has a minimum purchase amount of $25,000 for gold IRAs, and investors should have the money available when setting up a price quote to buy precious metals.
While customers can choose a custodian or depository, they can work exclusively with Goldco's custodians to set up the accounts and help them invest more later.
According to the Better Business Bureau, Goldco has a five-star rating and is accredited by the BBB. This gold company is affiliated with Consumer Affairs and Numismatic Guaranty Company.
Celebrity endorsements for Goldco come from Chuck Norris and Sean Hannity. When reviewing the company, potential customers find it highly credible and can read many positive reviews about Goldco.
Goldco offers a buyback opportunity that is easy to follow, and customers can request a gold kit to send their metals to the company and get a fair price when selling.
If the customers have an active account with Goldco, customer service representatives can review their account and give them a quote before the client sends in their metals for assessment.
Goldco clients are not under any obligation to sell their metals if they get a quote. If the customer disagrees with the quote, Goldco will return their metals to the customer's location.
2. American Hartford Gold - Best for Bullion Purchases
American Hartford Gold is a terrific choice for anyone who wants to buy gold bars outright or fund an IRA. The company has a rich history of selling and buying precious metals, and the organization started in 2015 in Los Angeles, California.
Customers can visit any of the physical locations, shop online, or call in their orders to buy precious metals from American Hartford Gold.
When examining the company's credentials, they'll see the organization has accreditation from the Better Business Bureau. Many celebrities like Bill O'Reilly and Rudy Guiliani have endorsed American Hartford Gold. Trustpilot and Google offer several customer reviews for customers to read and learn about the company.
Special offers are available from American Hartford Gold to help anyone who wants to fund an IRA with gold or other precious metals. Customers can review the eligibility requirements and get $10,000 in silver if their order qualifies.
Since American Hartford Gold wants to provide a helpful customer experience, they offer IRAs without fees if the customer meets the initial investment threshold.
For example, customers can open an IRA with $100,000 and avoid management fees for three years. They get the first year's fees waived if they invest no less than $50,000.
Customers can request a gold IRA kit to get started and learn more about setting up these individual retirement accounts. With the information, they know about minimum investment requirements and IRS guidelines that apply to these accounts.
For example, they'll learn how much they can invest each year into these accounts or which type of IRA is best for their needs. For instance, they can invest tax-free with a traditional IRA, or the investor could avoid paying taxes later if they choose a Roth IRA.
One factor they should remember is that American Hartford Gold requires at least a $10,000 investment for individual retirement accounts, and they must purchase a minimum of $5,000 when buying gold bars or other precious metals products from the company.
While this may not be feasible for most traders, those with unlimited financial resources could start a significant investment initially and add to it later. How they want to store their metals defines whether they should set up an IRA or wish to buy the metals outright.
Customers new to investing in precious metals can find a wealth of information for first-time investors on the company's website. They have a company blog and post many articles on their website with useful information to guide investors.
The website also has a market price ticker that shows visitors the current market price for all metals they offer. Before clients commit to an order, they can review these resources and make a sound decision about their investment.
3. Augusta Precious Metals - Best at Educating Clients
Augusta Precious Metals offers many investment options for traders, and the company is in California. It started in 2013 to provide customers with high-quality precious metals for home storage or to fund an individual retirement account.
Clients can create an IRA easily and select from a vast inventory of metals to save for retirement. There are many positive reviews for Augusta Precious Metals, where customers share great experiences with the company.
Clients can search for additional reviews on Google and the Better Business Bureau. A great advantage many customers get from choosing Augusta Precious Metals is that the company doesn't require management fees or commissions. The organization does this to help clients save more money for retirement.
Customers receive a seven-day price lock when shopping at Augusta Precious Metals. The price lock stops the price from increasing when it takes the customer to wire their payment to the company. So, even if the market prices increase during this time, the customer doesn't pay more for their order.
Additionally, Augusta Precious Metals offers all customers a lifetime account management service to protect client data and prevent outsiders from accessing their confidential details. The company has a buyback program to help customers sell their precious metals for cash.
It doesn't matter if the customer bought the metals from Augusta Precious Metals. They can still get a fair price for their metals, and the website offers updated precious metals prices according to market rates. The company also provides IRA specialists to help customers when they are ready to start distributions from their IRAs.
When buying from these gold companies, customers should remember that a price lock is a commitment to order. If they commit, they cannot cancel their order without incurring some penalties. For example, there is a market loss penalty for canceled orders, which is why many companies require a deposit.
With all the information, it is easier for investors to determine that buying gold from a gold dealer is better than a bank. According to many customers, banks charge more for precious metals, and the banks do not have buyback programs to help customers sell their gold for cash.
The purity levels when buying from a bank are not guaranteed since banks adhere to the details on the certificate and do not have trained staff to assess the purity levels of the metals.
After reviewing any of the above companies, investors can find the products they want for their investments at a fair price and sell them back to the company where they bought them to get their return.
Remember to read our list of the Top Gold Companies.
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