Wednesday, March 27, 2024

Do Banks Sell Gold Coins

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How To Buy And Keep Gold Coins

How To Buy Gold Coins From Indian Banks? Price, Premium, RBI’s Regulations – Indian Bullionaire

If you decide to buy gold coins, get it from a reputable dealer or financial institution. We wouldnt buy gold coins on Craigslist, but thats just us.

If you buy gold coins from individuals or from anyone else youre not sure of, have the gold coins authenticity verified first. You dont want a collection of gold-plated lead.

U.S. gold coins come in one, one-half, one-quarter, and one-tenth ounce denominations. You pay a premium over the price per ounce when you buy gold coins, which is how the dealer makes a profit.

You may pay a higher premium if you buy gold coins less than one ounce each. You should generally buy bullion coins, such as the American Gold Eagle, Canadian Gold Maple Leaf, or South African Krugerrand.

Collectors coins, called numismatic coins, are a different game than bullion gold coins. They can sell at a very high premium, and their prices are dependent on more factors.

Unless you are very knowledgeable about collectors coins, stick with bullion coins.

Once you have the coins, you may be tempted to run the coins through your hands, like Ebenezer Scrooge.

But of course you wont you should leave coins in their cases, away from scratches and fingerprints.

Dont even think of hiding gold in your house, unless you have a safe. Thieves know where to look, or they can find it with a metal detector.

For very little money, you can rent a safe at a bank for your gold and other valuables.

Find The Right Gold Dealer

Durrett advises gold bullion buyers to buy from online companies and to sell locally, explaining that local retailers cant compete with online stores and typically charge customers more. But because you will always be selling your gold at the spot price, it doesnt matter where you sell.

Take some time to research reputable gold dealers to find a fair price on gold coins. In general, avoid buying gold online through bidding sites, as you can end up in a bidding war and pay more for a gold coin than it is worth. Here are a few things to consider when youre looking for a gold dealer:

  • Dealer buyback policies: Before buying from a gold dealer, investigate its buyback policies. Some dealers charge a premium for you to sell back your gold, while others will not add any additional charge. Get the buyback policy in writing, and keep it in a safe place for the future.
  • Reputation: Buying anything online poses risks, so be sure to do thorough research before deciding on a dealer. The U.S. Mints listing of gold dealers is a good place to start. While these dealers are not affiliated with the U.S. Mint, it has done some research to ensure the dealers are trustworthy. Reading reviews on ConsumerAffairs is a helpful way to figure out which gold dealer is right for you.

Why You Should Not Buy Gold Coins From Banks

As i have mentioned in my previous posts also that we Indians are obsessed with Gold. You might be aware that it is mandatory to provide photocopy of PAN if investment in Physical Gold is more than 50k. Now more and more people are buying Gold Coins . Secondly, Thanks to the Relationship Manager of the Bank for pitching gold coins as one of the best investment avenue.

Gold Coins remind me of Mahabharata where Abhimanyu knew how to enter the Chakravyuha but he was not aware of technique to come out of it. Investment in Bank Gold Coins is also same. You are Abhimanyu and you enter the Chakravyuha but then stuck and dont know how to come out of it . I am listing down reasons why you should not buy gold coins from banks.

1. 7%-10% Costlier then Market Rate: Biggest disadvantage is that Gold Coins sold by banks are costlier then market rate . It eats into your hard earned money. Even though Making Charges/Wastage is almost negligible for Gold Coins but premium is charged. Banks may give various reasons like purity, guarantee etc but fact of matter is you are unnecessary paying higher amount.

2. Banks cant Buy Back Gold Coins: As per RBI regulation, Banks cant buy back gold coins. If u wish to buy gold coin then its advisable to buy from known Jeweller as they give assurance to buy back at prevailing Gold Rate at the time of Buy Back.

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Ordering Circulated Coinage Is Easy

If your goal is to buy rolls of circulated coins, your best bank type is the big name, broad appeal banks where average small business people do their banking. These banks typically deal in substantial amounts of circulated coinage, as some types of businesses take in more coins than they need, and will deposit them. Other business types use vast amounts of mixed coinage to give to their customers in change. Banks that do a steady merchant business almost always have plenty of circulated coinage on hand, and will often sell it to non-account holders. If you want to get this type of coinage regularly, especially in large quantities such as boxes of rolls, it’s a good idea to open an account with the bank that is supplying you with your coins.

Richard Wants To Know Can I Sell My Gold To A Bank

Bullion Banks Sell Even More Silver: Do They Have It ...

Richard: You know I have 20 gold bullions and scrap gold here. The scrap gold is a mixture of some rings, a necklace, some thin chains, cufflinks, a wristwatch band, earrings and a brooch. I know that gold sells by the weight and thats why I weighed it. All the scrap gold has a weight of 51.74 pennyweights. Can I sell my gold to a bank? And if yes, do you think they are willing to accept the scrap gold too?

Alan: I know some banks are buying gold coins. But just bullions like yours and no other coins and especially no scrap gold. But I dont know nationwide operating banks that are buying coins. Banks that buy gold coins are mostly smaller banks with just a couple of branches or even only one branch. There is another drawback that they only buy your gold coins back if you are banking with them. So, you would need to open a bank account in order to make the deal and consider, some banks take up to 20 days to close the selling deal. Why? It is because most banks are not able to determine the authenticity of your coins. They send your gold coins away to get proof of authenticity. Im not sure if this procedure is hassle-free. Thats very questionable.

Richard: I understand. But wouldnt it be a good idea for banks to buy gold in any condition?

Richard: Maybe not but it would be very convenient for me as a consumer.

Alan: I agree with you.

Alan: Thank you.

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How Banks Lend And Sell Bullion

When a central bank lends gold to bullion banks for a specified period, say three months, it receives the cash equivalent of the gold lent to the bullion bank. The central bank lends this money on the market at a lease rate known as the Gold Forward Offered Rates , which is published daily by the LBMA. The higher the lease rate, the more incentive a central bank has to lend gold from its reserves. The bullion banks who borrow the gold can sell the gold or lend it to mining companies.

If the bullion bank sells the gold on the spot market, it will receive cash for the transaction. The spot market is where bullion and other commodities are traded at the prevailing market rate. An increase in the supply of gold in the market reduces its price. The bullion bank hopes that by the time its scheduled to repurchase the gold from the spot market, the price of bullion will be lower so that the bank can buy it back at a lower price than it had originally sold it. At the end of the loan period, the bank buys back the gold and returns it to the central bank.

How To Buy Gold Online

Like many other products buying gold online can be as easy as point-and-click. The best dealers have a well-organized website with easy navigation to find and compare products by category . When you find a product you want, you click on it to review the details. As with any online shop, you can add it to your cart. You can then enter the quantity you want. From there, you can continue to shop or move on to checkout.

Once you start the checkout process with most dealers, your price is locked in for a short period, typically 10 to 15 minutes. You need to complete your purchase before the pricing expires, or you may see the price adjusted up or down based on how the market is moving.

Once you complete checkout, you will receive an email confirmation along with ongoing shipping notifications.

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How To Tell If Gold Is Real

Check for a stamp. A real gold item will have a purity marking on the back or inside. This stamp is typically either a carat number, such as 18K, or 12K, in the shape of a rectangle with the corners cut off, and with a number inside. Here is the meaning of those numbers:

999 = 24 karat, 99.9% gold990 = 22 karat, 99% gold 916 = 22 karat, 91.6% gold 750 = 18 karat, 75% gold 585 = 14 karat, 58.5% gold 375 = 9 carat, 37.5% gold

How to tell if gold is real with a lighter. Hold your gold jewelry or coin to the steady flame of a lighter or oven .Real gold will get bright hot after a while, but will not darken. Fake gold will darken or otherwise change color when exposed to fire. Also, if the piece is gold-plated , the thin gold plating will melt, revealing the inner metal.

Test your gold with a magnet. Gold is not magnetic. Using an extra-strong magnet , see if your gold jewelry is attracted to the magnet. One side note, sometimes a real-gold bracelet or necklace will have a clasp that is not made of real gold, and will be drawn to the magnet, while the rest of the item will not.

Float test. Real gold will not float, and will not rust. Drop your gold into a glass of water. If it floats, it’s fake.

Skin test. Real gold jewelry will not turn your skin black or green.

Can You Sell Gold That You Find How Do I Sell Raw Gold

Gold, silver, and miners sell off after Fed announcement

You can typically sell your raw gold the same way that you would sell refined gold products like jewelry, coins, or bullion though keep in mind that gold found through prospecting, or other raw gold does not fetch the same high price as government-backed gold products. Pawn shops, gold exchanges, and online gold buyers all purchase raw gold, though certain establishments may have their own policies.

Our recommendation? CashforGoldUSA. The company pays fast and consistently pays top dollar for gold. Plus, they will help you determine the exact composition of your raw gold so that you can feel confident that you are getting a fair price.

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Don’t Buy Gold From A Cold Caller Over The Phone

The Federal Trade Commission reports a rise in boiler rooms hawking gold coins or bars. Dama Brown, staff attorney for consumer affairs in the FTCs Atlanta office, says that these operators usually make inflated claims about the potential profit from gold, such as tripling your money in 30 days. Such claims are often coupled with warnings about the weak economy and how gold, as a hard asset, is less risky than stocks, she says.

Brown says your first clue that these arent calls from legitimate sources is if your phone number is in the National Do Not Call Registry but the gold salesmen call anyway. It surprises me, the number of people who will go ahead with a sale when dealing with someone who has already violated the Do Not Call list, she says.

Also, these outfits dont give you physical possession of the gold, but claim to hold it for you in a vault. “In some cases, these are outright scams and no gold exists,” Brown says.

Banks That Sell Gold Coins

Gold investors can purchase gold coins from banks, but not all banks sell gold coins, only some of them do. Banks that sell gold coins are sure to sell authentic coins. This is good for the new investors in gold, especially if you do not know of any gold broker or dealer yet.

Purchasing gold bullion coins at the bank make you have peace of mind since you are assured of getting the right exchange rate for your coins. The price of gold changes every day and usually when you purchase some, it will be based on the current spot price.

They base it on the exchange rate for spot cash prices and since banks are the primary source of information about the current price in the market. Then that is a good advantage to you as investor or even to individual who likes to collect gold for future investment.

Purchasing gold at the bank are safer rather than purchase it online or to any dealer or broker whom you don’t know well. Remember that you are investing a big amount of money so you need to be careful and be safe in dealing of buying gold coins.

There are banks that sell gold coins but don’t buy them, They are known as one way transaction but there are also banks that go for two ways. Selling and at same time purchasing them. Buying or purchasing in the bank is safer and surely guaranteed that it is authentic gold coins.

For more on the many banks that sell gold coins you need to go online. However, for more complete service you may also wish to check out gold bullion banks .

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How To Spot A Gold Scam

Gold scams are very common. Since there is not a lot of regulation surrounding the industry, it is not that difficult for you to find dealers that look very legitimate but arent.

Here is how you can spot a gold scam before purchasing or selling it to a dealer:

  • Make sure you know what you are doing. Understanding the basics such as how purity works in determining the worth of the gold and how to properly weigh bullion is compulsory before you purchase gold.
  • Always stick to dealers that have a stellar reputation and have been in the business for a long time. They can not only protect you from scams but can also offer you better products due to having a more reliable and capable network.
  • If a deal seems like it is too good to be true, then it probably is. Always remember that there is no easy way to make a profit. Your objective when buying gold is to protect your wealth, not enhance it.
  • Remember to avoid buying coins that are thought to be rare and are selling way above their actual value . There is no indication that their prices will continue to rise or even stay the same.
  • Avoid coins that are selling below their spot prices. As we said, offers that seem too good to be true probably are.

How Much Is Gold Worth

Bullion Banks Sell Even More Silver: Do They Have It ...

The resale value of your gold is based on the current market price of gold bullion, but considers several other factors. The higher the percentage of gold in your jewelry or coin, the higher the value.

Gold is measured in karats, with 24-karat being the purest gold, with the highest gold melt value. Unless you have gold bullion or another form of pure gold, your gold item is mixed with other metals or alloys.

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How To Choose A Reputable Gold Dealer

Unquestionably, a company’s reputation is the number one criteria by which to evaluate and compare gold dealers. The single best measure of a company’s reputation is its transaction history, which can be assessed by customer reviews. Companies with a large number of reviews are typically more established or have built up their trust and reputation through a greater number of transactions.

Additionally, you should look for the following when evaluating a dealer’s reputation:

Gold Authentication And Certification

Since South Africa began minting the 1 ounce Krugerand in 1967, gold bullion coins issued by the worlds government mints have standard highly recognizable features, including the purity of the gold. Most countries stick to one design for coins, while some countries like China vary coin designs.

Standard government minted gold coins generally come with a mint certification when distributed by authorized coin dealers. The numismatic certification of collectable coins identifies the value of a gold coin based on its legitimacy, rarity and condition. The 2 major coin certification companies are the Numismatic Guaranty Corp. and the Professional Coin Grading Service .

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How Much Is 14k White Gold Worth

14k white gold contains 58.3% gold. Because gold is a soft metal, and 14k gold has less gold in it, youll typically find that 14k white gold will be sturdier than 18k white gold.

To find out how much your 14k white gold is worth, you will need to:

  • Look up the current spot price of gold.
  • Weight your 14k white gold and multiply that number by 0.583 to determine how much pure gold is in the item.
  • Multiply the number above with the current spot price of gold to determine how much it is worth.

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