Q: So Where Can You Store Gold Bars Not Held In An Ira
A: If you purchase gold bars that are not intended for a gold IRA, you can keep them wherever you want.
But for at-home storage, its best not to bury gold bars in the backyard or put them under your mattress. Rather, consider getting a sturdy safe thats made for holding precious metals.
If you decide not to keep your gold bars at home, consider a safe deposit box at a bank or, better yet, an authorized precious metals depository or vault.
What Is An Online Gold Dealer
The top online gold dealers are trusted vendors offering everything from investment-grade bullion, coins, collectible gold pieces, and more. Customers can easily compare prices across multiple sellers and make a buying decision based on price and shipping speed. The top dealers offer options to take physical delivery of the gold or store it in a secured vault. Customers also have the option of selling their gold back to the dealer.
How To Choose A Reputable Gold Dealer
Unquestionably, a company’s reputation is the number one criteria 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:
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Best For Gold Coins: Bgasc
As its name implies, BGASC is one of the best sources for gold bullion coins sold at reasonable prices, making it our choice for the best online gold dealer for coins.
Best selection of gold coins
Competitive pricing on gold coins
Excellent customer support
No live chat
Three-day return policy
Although BGASC offers a complete lineup of gold products, its primary focus is on selling gold bullion coins. Their selection of coins is vast, prices are highly competitive, and customer service is excellent, which is why BGASC is our choice for the best online gold dealer for coins.
BGASC is the newest company in this roundup, but they’ve managed to build a solid reputation as a major player, especially as a gold coin dealer. In addition to a great selection of all the essential standbyssuch as American Eagles, Canadian Gold Maples, South African Krugerrands, Pre-1933 U.S. Gold, and Australian Gold Kangaroosthey maintain an extensive inventory of premium and rare numismatics. It also offers silver, platinum, and palladium products. They do offer gold bars in all the standard sizes, yet they tend to focus on one brandPAMP Suisse Fortuna Gold Bars.
The gold bars they do sell are priced competitivelytheir 1 oz. Gold Eagle coin is offered at $1,963.67, one of the lowest in this roundup.
One of the downsides of BGASC is its limited payment options. Currently, they only allow payments with paper checks , PayPal , credit and debit cards , and bank wire transfers .
Equipment You Need To Buy And Sell Gold
Before you begin buying and selling gold, the following are some of the steps you should follow so your venture would run smoothly. They include
Test Kit for Gold
In this business, a necessary purchase is a gold testing kit. This is not an expensive purchase. The kit is used to double check the gold carat that a customer wants you to buy. The different acids necessary to test 10k, 14k, 18k, and 22k will come along with the kit.
A Professional Jewellery Scale
Having a professional jewellery scale is absolutely essential. The cost might be high at the point of purchase, but in the long run the service it provides is worth it. Using a kitchen scale is illegal in terms of trade. Apart from the kitchen scale not being legal, it makes you and your business seem highly unprofessional.
Ensure that your scale is accurate by taking readings daily. Have records that show the accuracy of your scale in the event that you are asked about it. The questions can be from either an official body or a customer.
Buy a Magnet and File
In the gold industry, having a magnet at hand is always of tremendous benefit, so it is better to buy a quality one. A metal file that is used to scrape the outer layer of jewellery is equally needed. The file and magnet are inexpensive and will last for a long period of time.
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So How Do You Find A Reputable Dealer
Good question. There are thousands of dealers in the country, but there is no federal regulation and little state regulation. The U.S. Mint has a list of national dealers and dealers by state that it checks but doesnt vouch for. White says that the Mint checks those dealers against the Better Business Bureau list for complaints, as well as online to see whether there is any negative information about the firm and to get a feel for how the company conducts and promotes itself.
However, given that the Mints authorized purchasers are obviously trusted by the Mint, you may want to buy directly from one of them. We checked with each of them, and here are their rates, terms and conditions.
MTB : 212-981-4510. MTB sells primarily to wholesalers, but individuals can buy from the company, too. It charges 4.5% over the spot price. Theres no minimum purchase, but there is a minimum commission of $25. No discount for bulk purchases.
CNT : 508-697-9600. Minimum purchase of $1,000. The company does a background check you must provide several pieces of information, including your drivers license number. Traders work off a current spot-price screen, which changes throughout the day. No discount for bulk purchases and no standard commission given.
Dillon Gage: 800-375-4653. Minimum order of $5,000. The dealer ships everywhere in the U.S. for a flat $25 fee the markup is 7%.
Don’t Buy Based On Confiscation Scares
Yes, it is true that in 1933 President Roosevelt issued an order to collect gold from U.S. citizens because the bank panics of that year and other factors were draining the Federal Reserves gold supply, and we were on a gold-based currency standard back then. And yes, Executive Order 6102 exempted rare and unusual coins from having to be turned in.
People who did turn in their gold received $20.67 an ounce. Soon after, the U.S. Treasury set the price at $35 an ounce. Ouch.
However, some gold dealers use these facts to scare investors into buying overpriced coins. Some history: Hello, the U.S. is no longer on the gold standard and hasnt been since 1971. And the limit on gold ownership in the U.S. was repealed in 1974. So notwithstanding the paranoia-laden pitches of some salesmen , there is no danger of gold confiscation.
Further, the confiscation sales pitch is usually based on a very broad definition of rare and unusual coins. Theyll say anything minted pre-1933 has numismatic value, says Michael Freedman, president of Euro Pacific Precious Metals. In fact, Freedman says, there were millions and millions of gold coins minted in the 1800s and early 1900s that were simply coin of the realm. They have no numismatic value.
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How To Store Gold Bars
Part of buying gold bars is where youll store them. While keeping some at or near home can be useful, you dont want all your physical wealth vulnerable to one act of misfortune.
The ideal solution is to keep what you think you might need in an emergency close byand then get the rest of your holdings out of the house, and yet still have it easily accessible at any time.
That option is available. Private, non-bank, fully allocated, fully-insured class-3 vaults offer the highest level of security and are the best way to keep bullion safe during times of financial and social crises.
Factors To Consider When Buying Physical Gold
If you decide to buy physical gold, youll want to keep a few things in mind:
- Storage: Physical gold requires a secure storage location. While you can certainly keep your gold at home, many investors prefer a custodian. Make sure you research secure options for storing your gold before you buy it, and keep in mind that safe storage adds costs to your gold investment.
- Insurance: If you decide to store your gold at home, you should insure your gold to protect yourself against theft or natural disaster. This can add to the cost of your homeowners or renters insurance. And even if you dont keep your gold at home, youll want to check in on your storage providers insurance policy to determine how its protecting your investment.
- Manufacturer: Because youre making an investment, youll want to make sure youre buying from reputable sources that will help your purchases value grow over time. When buying gold, look for respected producers like Credit Suisse, the Perth Mint and the Royal Canadian Mint.
- Purity: The gold content in the coin, bar or piece of jewelry has a big impact on its value and worth as an investment tool. Ensure any gold you purchase as an investment has the purity level to help it stand the test of time. That means youre probably targeting gold items that are at least 91%, if not 99%, pure.
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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.
Dealing With Difficult Bank Tellers
Regardless of the type of bank you go to, you may encounter tellers that are difficult, stubborn, or obtuse. Some of them merely need some genuine hand-holding, but others seem to be contrary just because they can. When you encounter difficult tellers, take a moment to explain things. Be empathetic to their current situation. You don’t know what type of day they are having. Tell them that they can order the coins directly from the Fed on your behalf. If they claim they can’t do that, then asked to get the head teller or supervisor.
Always be courteous but firm. If banks claim they “don’t carry” the Presidential Dollars, for example, let them know that all they need to do is order them. Go up the management chain if you have to. If they keep insisting they won’t order them, ask if there’s another branch of the bank that will. Get them to call around for you to find what you need. After all, you’re the customer!
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Heres What Happens Next
The problem is that money-printing lowers the purchasing power of all dollars, everywhere. It usually takes a while for people to catch on, though. Thats because were accustomed to thinking of cash as a safe store of value.
Eventually, we move into the next part of the cycle. Dalio says:
When the creation of money sufficiently hurts the actual and prospective returns of cash and debt assets, it drives flows out of those assets and into inflation-hedge assets like gold, commodities, inflation-indexed bonds, and other currencies . This leads to a self-reinforcing decline in the value of money.
That self-reinforcing decline in the value of money means people are less willing to be paid in dollars, generally less willing to hold assets denominated in dollars. Thats why commodities are prized their value is intrinsic. In other words, their value doesnt change except in relation to supply and demand.
Along the same lines, world central banks are dumping dollars. Currently theyre holding the fewest dollars in 26 years. Might be that central banks are catching on faster than the man on the street?
It probably isnt a coincidence that world central banks are replacing those dollars with gold, 36,000 tons of gold bars last year, a 31-year high.
It might surprise you to consider, when you look at the price of gold, that demand from central banks around the world is affecting that price.
Why emphasize gold, when any commodity serves as a store of value?
One Ounce American Gold Buffalo
Backed by: United States government
Special Note: The newest sovereign coin, first manufactured in 2006 greater purity than the Eagle.
If you want to own pure gold, coins are a good place to start. Youll have beautiful coins, backed by a sovereign government, which can easily be sold when the need arises.
I recommend buying one-ounce denominations, because the premiums are higher on fractional coins. But if you cant afford a full ounce, some gold is certainly better than no gold.
This isnt to say that you should never buy other coins. The point is that every investor should have a meaningful stack of these before buying anything else. These gold coins are your gold safety net, you and your familys monetary insurance hedge that can easily be sold if the need arises.
Now that we know what to buy, lets find out where to shop
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Pros Of Buying Gold From A Bank
Despite these challenges to buy gold coins from a bank, some people still decide to buy from a bank because they offer benefits such as:
- Limited risk associated with the purchase
- Careful authentication of the gold quality
Consider the value of authenticity against the increased expenses and inconvenience before you purchase gold from a bank.
Can I Buy Gold Bars At A Bank
For most investors in North America, the answer is no.
If you live in the US, it is a common misconception that you can buy gold at a bank. Many people expect a bank to issue gold, harkening back to days when gold backed the currency, but today most physical gold is purchased from non-bank distributors. Even the US Mint requires retail customers go through an authorized purchaser .
But if youre in Europe or Asia, check with your bank. Some banks may offer gold products to retail customers. I know several people that have done this very thing in Switzerland, for example.
To find out if a bank offers gold bars for sale, just give them a call . One caution: make sure you compare premiums, so that youre not overpaying. Also, inquire if they offer lower rates to their existing bank customers.
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The Advantages Of Buying Gold Bars
Tip: Youll get more ounces for your money with bars than coins.
The primary reason investors choose a gold bar is that its less expensive than a gold coin. Premiums are lower because coins have a more intricate design and thus greater labor and machining costs. Coins may be prettier, but youll pay extra for that appeal. The other advantage of gold bars is that theyre easier to store. A gold bar takes up less space than the same number of ounces of coins. In fact, bars were originally designed specifically for ease of storage.
Buying gold bars doesnt compromise any of the core advantages of gold: theyre portable, private, liquid, and will last forever.
How Will You Insure Your Gold
Gold represents a significant investment for many people. You can use this precious metal to store your wealth. Therefore, it makes sense to carry insurance in the event of a theft or natural disaster that could damage or destroy it.
In some cases, you may increase your renters or homeowners insurance policy to cover your investment. Make sure that you speak with your insurance company to discuss your options before making your purchase.
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Advanced Planning For Bank Wrapped Rolls
When you know a particular coin type is being released, call ahead and ask your bank to order the quantity you want, and hold it for you. If you like to put away rolls of mint-state coins of types that are hard to find in full rolls, such as nickels and dimes, call your bank every couple of days and check to see if any mint rolls came in. Find out what day they usually get their Fed orders, and call that day. When they get some mint-state coins in, ask them to hold them for you.
By far, the best way to ensure a steady supply of bank wrapped rolls is to develop a relationship with a certain bank. Become friendly with the head teller or manager. Ask them to call you if someone deposits unusual items, like rolls of half dollars or large size dollars, such as Eisenhower Dollars. In fact, make it a habit always of asking the teller to check the vault for rolls and partial rolls of these coin types. Banks would love to clear out these oddments since they can’t send them to the Fed until they acquire a certain amount. Half dollars and large size dollars, among all types of currently circulating coins, are most likely to produce silver or valuable varieties!