Gold is a good investment in some cases. But specifically, when you want to buy the bank gold coin it is not at all an investment, rather a loss of your money for nothing more than just fancy words of the bank.
Banks are promoting Gold coins a lot to its customers in recent days by promising 99.99% purity and guarantee along with a premium of some 8-10%. The bank is just a seller who is ready to say whatever is needed to compromise you to buy the yellow metal at an extra price. Be thankful to yourself for choosing to research the truth.
Buying gold coins from the bank is really very simple, walk into a bank and fill in a simple KYC, pay the cash and get your Premium Bank Gold Coins with a royal packaging and walk out. But selling these coins is a hectic job and involves so much of disappointments.
1.The premium lieThere is no/least making charge for gold coins, but banks charge you an extra of 8-10% of the market price. The justifications they give you are the highest purity, guarantee, Switzerland import, ASSAY certification, and what not But they are actually charging you more than the original cost and you are simply losing the money you earned.
You must be wondering what you would do with the high purity bank gold coin now. The only way you got is to exchange it for jewellery or sell it to a gold merchant. Even then you are going to pay the additional 10-15% of making charges or melting loss on the exchange.
So apparently, you are losing your money twice if you choose to buy gold coins from a bank. The extra money bank charged while you buy the gold coin, and the money charged by the jeweller while you sell the bank gold coin.
If your plan is to invest in gold or trade with gold, then the bank gold coins are not the choice. In fact, they are the least good or the worst option you could choose. An alternative way is always there, hiding in some corner.
If you are only looking for an investment or generating a good return using gold, then you have a couple of more options like mutual fund investment and stock market etc. Gold is a form of wealth which can get you any currency of that value all over the globe and of course very influential. It is advisable to keep an allocation of 5% to 10% of your money in the form of gold. But make sure the value does not depreciate due to trivial reasons like buying it from a bank.
London is the global centre for gold trading. We support financial stability by providing central banks with access to the liquidity of the London gold market. We also provide gold accounts to certain commercial firms that facilitate access for central banks to the London gold market.
Research conducted by Goldsilver.com shows the probability of profiting from an investment in gold increases if the commodity is bought at the beginning of January, late March to early April, and mid-June to early July. Since 1975, March was the worst month for gold so buying it then would increase the odds of profitability. Furthermore, the research showed that an investor interested in buying gold should do so by the end of the second quarter of a given year.2
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Coins, including proof coins, are purchased for their gold content at the prevailing gold price. Customers are paid out in rand. Payments to customers are processed electronically and customers receive funds directly into their bank accounts. A receipt is handed to the customer at the time of concluding the transaction.
The SARB will only pay for the gold content of any Krugerrand, and Protea or Natura series gold coins offered. The prevailing market gold price and dollar exchange rate are used to calculate the price offered for the coin(s) on the day of selling. It should be noted that no premium is paid for the scarcity or collectability of any coin(s) offered for purchase by the SARB. Authorised coin dealers or coin collectors are more likely to pay a premium for collectable coins.
The SARB only pays for the gold content of the coins offered. However, proof coins can be sold to an authorised coin dealer or coin collector who might be willing to pay a premium for the coins based on their scarcity and condition.
The SARB does not sell coins to the public. Gold coins, including Krugerrands, can be purchased from the South African Mint or authorised coin dealer. A list of accredited authorised gold coin dealers is available on the South African Mint website.What price can I expect the SARB to pay for my Krugerrands or other acceptable gold coins
The SARB buys Krugerrands, and Protea and Natura series gold coins from the public. However, the SARB will only pay for the gold content of each coin and no premium is paid for the scarcity or collectability of the coin. Authorised coin dealers or coin collectors are more likely to pay a premium for collectable coins.
For example, gold bullion coins, such as American Eagles, which are guaranteed by the federal government, have inherent liquidity because they are bought and sold by coin dealers, banks and commercial dealers without question, says Clark.
If held off the company's balance sheet, investor assets are held separate and apart from those of the company, and thus, they will not get tied up in bankruptcy proceedings should the company fail,\" he says.
Ans. Yes. Both Union Bank customers as well as non customers can purchase Gold Coins from our branches. Union Bank customer can buy gold coins by issue of cheque from their accounts or provide a debit instruction. Non-customers can deposit cash for purchase of Gold Coins if the value is less than Rs. 50,000/-. In case the purchase value is Rs.50,000/- or more, then the payment will have to be made by cheque / PO / DD, on realization of which the Gold Coins will be handed over. The rate as applicable on the date of realization of the cheque, will be charged for the Gold Coins. Identity Proof / PAN card copy duly signed by the customer is also required in case of Purchase for Rs. 50000/- and above, and for all Cash Purchases.
They offer a range of gold coins and bars, including coins from the U.S., Canada, Australia, China, and Great Britain, as well as pre-1933 gold, produced prior to the end of circulation of gold coins in the United States.
They have a 3-day return policy, and their cancellation fee is fairly high. Returned products are subject to a 5% restocking fee or $35, whichever is higher. Returned products from the SD24K jewelry line are subject to a 10% restocking fee. They may also make you pay the cost of any market loss. While they will buy back your gold, their prices are not publicly available.
Like many of their competitors, they have a deals page where you can find gold coins at discounted prices, and they offer currency from a range of countries including the U.S., Canada, Australia, and more.
David Hall Rare CoinsIf you want a personal touch, consider David Hall Rare Coins, where you shop by talking to an agent directly. They sell gold and silver over the phone, including coins and bullion.
It's limited in quantity.Because of its finite quantities, it's a hedge against the inflation of paper money. After all, central banks can always print more money, but there's a limited amount of gold on Earth.
How much unmined gold is left According to estimates from the BBC, about 50,000 metric tons of below-ground gold remain unmined. So far, about 190,000 metric tons of gold have been mined. (A metric ton is roughly 2,204.6 pounds.)
They should have transparent pricing, ideally without commissions or extra fees, which you'll need to check for before you make any purchases. And since the price of gold changes from moment to moment, you'll want to be sure their prices are current.
And last, you'll want to know what their return and buyback policies are. It's normal to accept returns within three days of purchase, but look out for restocking fees. Since most good dealers will also buy gold back from you, look for their listed buyback prices.
Working Stock: That portion of the U.S. Government gold reserve which the Mint uses as the raw material for minting congressionally authorized coins and consists of bars, blanks, unsold coins and condemned coins.
Many investors look toward gold coins and bars in order to diversify their holdings and preserve their wealth. Gold has an exceedingly limited supply, so the demand is almost always high and the value is constantly going up. By holding its value so well against inflation, gold is a good investment and offers insurance against global uncertainty. But the buying and selling of precious metals can be difficult to get into because of the lack of knowledge on your part and the different types of dealers in the business.
While Scotiabank advertises its available gold products, other banks might not have the same variety. Some banks might let you buy smaller gold coins while others may only invest in large bars, hundreds of ounces in weight. Smaller coins will cost you more of a premium above spot price, but you will have a wider pool of potential buyers, and a more favorable price, should you need to sell. On the other hand, you will pay less of a premium on a gold bar because it has far less production cost, but you might have a hard time finding a buyer if you need to convert it back to cash.
In times of inflation, stock market uncertainty and concern in the banking sector like we're experiencing now, many investors turn to gold to support their holdings. These issues and other risk indicators may have you taking a second look at your portfolio and thinking about new ways to invest your money. 59ce067264