Buy Gold Bars from Bank of America: How to Guide for 2024

We are a reader supported site. When you invest through our links, we may earn a small commission at no extra cost to you.

Last Updated: November 22, 2023

Gold has always been a symbol of wealth and stability, attracting investors and collectors alike. In recent times, the interest in buying gold bars has surged, driven by various factors including economic uncertainties and the lure of owning a tangible asset.

This section sheds light on why gold bars are a sought-after investment:

  • Stability: Gold is often considered a safe haven in volatile markets.
  • Tangibility: Unlike digital assets, gold bars are physical and can be stored privately.
  • Value: Historically, gold has maintained its value over long periods.

a gold IRA investing kit

Buying Gold Bars From Bank of America: The Reality

Many investors wonder if they can purchase gold bars from Bank of America, one of the leading financial institutions in the US. Here’s what you need to know:

  • Bank of America’s Offerings: Contrary to some beliefs, Bank of America does not deal in precious metals. Their focus is on everyday financial products like certificates of deposit, loans, and checking accounts.
  • Gold Bars and Banks: Most banks, including Bank of America, do not offer gold bars. They primarily deal in paper assets, not tangible ones like gold or silver.

Why Banks, Including Bank of America, Don’t Deal in Gold Bars

why most banks dont sell gold

Understanding why Bank of America and other banks steer clear of dealing in gold bars is crucial for potential investors. Here are some key reasons:

  • Specialization in Paper Assets: Banks like Bank of America focus on non-tangible assets such as loans and savings accounts, not on physical commodities like gold.
  • Storage and Security Issues: Handling and storing precious metals like gold requires specific security measures, which are not typically within a bank’s realm of services.
  • Price Fluctuations: The varying prices of precious metals can be a challenge for banks, which prefer to deal with more stable asset types.

Purchasing Gold From Banks: Pros and Cons

While Bank of America and most banks don’t directly offer gold bars, the concept of buying gold from banks is worth exploring. Here are some expanded pros and cons to consider:

Pros:

  1. Perceived Trust and Security:
    • Banks are highly regulated institutions, which can provide a sense of security and trust for customers.
    • The reputation and longstanding history of many banks can offer peace of mind.
  2. Convenience for Existing Customers:
    • For individuals who already have accounts or other investments with a bank, adding gold to their portfolio could be a convenient option.
    • The familiarity with bank procedures and personnel can make transactions smoother.
  3. Diversification of Investment Portfolio:
    • Purchasing gold through a bank can be a part of a broader strategy to diversify one’s investment portfolio.
    • Gold can serve as a hedge against inflation and market volatility.

Cons:

  1. Limited Selection and Higher Premiums:
    • Banks that offer gold typically have a limited selection, often restricted to gold coins.
    • Banks may charge higher premiums on gold compared to specialized precious metal dealers.
  2. Lack of Specialization in Precious Metals:
    • Unlike specialized dealers, banks usually lack expertise in the nuances of gold trading and investment.
    • The advice and services offered by banks may not be as in-depth as those offered by dedicated gold investment companies.
  3. Storage and Accessibility Concerns:
    • Banks may not offer storage solutions for physical gold, leaving buyers to arrange for secure storage.
    • Accessibility to one’s gold holdings can be an issue, especially if stored in bank safety deposit boxes.
  4. Potential for Higher Transaction Fees:
    • Transactions involving gold at banks may come with higher fees due to the bank’s overhead costs.
    • Additional charges could include consultation fees or transaction fees for buying and selling.
  5. Geographical Limitations:
    • Availability of gold products at banks can vary greatly depending on the region and country.
    • In some regions, banks may offer a range of gold products, while in others, such options might be completely unavailable.

In summary, while banks, including Bank of America, are generally not primary sources for purchasing gold bars, they may offer alternatives for those looking to diversify their portfolios with gold. However, the limitations in terms of selection, expertise, and additional costs should be carefully weighed against the convenience and trust associated with banking institutions.

Top Three Alternatives to Buy Gold Bars Over a Bank of America

Given that Bank of America and similar banks do not deal in gold bars, investors seeking to purchase gold bars can explore several reliable alternatives.

Here are detailed overviews of the top three options:

1. Goldco:

#1 for Gold IRAs
#1 Gold IRA Company for 2024
9.8/10Our Score

Goldco has earned top ratings in the Gold IRA industry for their outstanding customer service and integrity, including an A+ Rating from the Better Business Bureau.

  • A+ BBB Rating
  • AAA Rating from Business Consumer Alliance
  • Up to $10,000 in Free Silver on Qualified Orders
  • Simple 3-Step Gold IRA Process 

"I learned early on to put a percentage of earnings in gold and silver. That’s why I recommend Goldco." -Sean Hannity

  • Reputation and Endorsements:
    • Goldco has gained recognition through television endorsements by celebrities like Chuck Norris and Sean Hannity, enhancing its visibility and credibility.
    • The company’s strong brand presence makes it a popular choice among gold investors.
  • Services and Offerings:
    • Specializes in gold and silver coins, with gold bars also being a significant part of their product line.
    • Provides a straightforward website experience, offering easy access to purchase options, market news, and customer reviews.
    • Offers valuable advice on gold bars, including their purity and eligibility for Individual Retirement Accounts (IRAs).
  • Investment Flexibility:
    • Supports investors in setting up gold IRAs, facilitating the inclusion of gold in retirement planning.
    • Provides options for personal delivery or secure depository storage for gold investments.

2. Augusta Precious Metals:

augusta precious metals logo

  • Specialization and Market Presence:
    • Augusta Precious Metals, based in Casper, Wyoming, is known for its focus on online sales and a range of celebrity endorsements.
    • The company has built a solid reputation since its inception in 2012, accredited by the Better Business Bureau with no official complaints.
  • Product Diversity and Investment Support:
    • Offers a variety of gold and silver coins and bars, catering to different investment needs and preferences.
    • Provides gold IRA consultations, aiding investors in setting up accounts with trusted custodial and depository partners.
  • Customer Resources and Satisfaction:
    • Augusta’s website is a hub for resources like retirement calculators and market news, which are valuable for investor research and decision-making.
    • Known for its customer satisfaction, Augusta competes at the same level as other top companies in the precious metals market.

3. American Hartford Gold (AHG)

american hartford gold logo

  • Product Variety and Information:
    • AHG stands out with its extensive product range, offering a diverse selection of gold bars and coins.
    • Detailed descriptions and specifications for each item are available, aiding investors in making informed decisions.
  • Customer Engagement and Transparency:
    • Prominent on their website are celebrity endorsements and customer reviews, contributing to a transparent customer experience.
    • AHG’s proactive approach to resolving customer complaints, as reflected in its interactions with the Better Business Bureau, showcases its commitment to customer service.
  • Gold IRA and Custodial Services:
    • Offers gold IRA services, assisting customers in setting up gold-backed retirement accounts.
    • Provides a list of approved custodians and depositories, ensuring the safety and legitimacy of the gold investments.

For investors looking beyond Bank of America for gold bar purchases, these three companies provide comprehensive services, diverse product ranges, and a focus on customer education and satisfaction. Each investor must assess these alternatives based on their specific investment goals and comfort level with precious metals investments.

Options for Investing in Gold Bars

Investing in gold bars offers several options, each with its unique considerations:

  • IRA Deposits:
    • Gold bars can be a part of a self-directed IRA, with specific purity requirements as per IRS guidelines.
    • Physical possession is restricted until certain distributions are required.
  • Dealer Reputation:
    • Researching the dealer’s history and customer reviews is crucial for a trustworthy purchase.
    • Look for dealers with a track record of quality and reliability.
  • Selling Back to the Dealer:
    • Understanding a dealer’s buyback policy is important for potential future liquidation.
    • Reputable dealers offer fair pricing during buyback.
  • Storing Gold Bars:
    • Options include home storage for direct access or a secure depository for added safety.
    • Depository storage can offer tax incentives and enhanced security.

Investing in gold bars requires careful consideration of various factors, including the dealer’s reputation, storage options, and the potential for adding them to an IRA.

Conclusion: The Best Ways to Invest in Gold Bars

In conclusion, while Bank of America and other major banks do not offer gold bars, there are many reliable alternatives for investing in gold:

  • Exploring Specialized Dealers: Companies like Goldco, American Hartford Gold, and Augusta Precious Metals offer expertise in gold investments.
  • Understanding Investment Strategies: Whether it’s for a self-directed IRA or personal collection, knowing the ins and outs of gold investment is key.
  • Considering Storage and Security: Deciding on how and where to store gold bars is an essential part of the investment process.

Gold bars remain a popular and viable investment option, with various avenues available for interested investors.

a gold IRA investing kit

FAQs

Frequently asked questions provide valuable insights for potential investors in gold bars:

  • What are the available sizes of gold bars?
    • Gold bars range from 1 gram to 1 kilogram, catering to different investment scales.
  • Can investors take possession of their gold bars in retirement?
    • Yes, upon reaching a certain age, investors can take possession of gold bars from their IRAs.
  • Why do different dealers have varying gold bar prices?
    • Prices fluctuate based on the spot price of gold and individual dealer premiums.
  • Do banks carry gold bars?
    • Most banks, including Bank of America, focus on paper assets and typically do not deal in gold bars.