Why you should not buy Gold from banks in Canada?

Why you should not buy Gold from banks in Canada?


Precious metals, specifically Gold, has been a reliable asset for centuries that allows investors to hedge their wealth against inflation. Gold also tends to thrive in times of economical instability. When purchasing Gold in Canada, it is crucial to conduct your own research. Gold can come in coins or bars, with different premiums. Analyze market situations and identify your purpose of investing before making a purchase. This way you can make investments with more confidence. When buying Gold, there will always be a premium over spot that you must pay. Based on the reason for your investment, purchase a product with a premium accordingly. Moreover, we can observe products like the BMO Gold Bars, TD Bank Gold bars and Scotiabank Gold Bars and will still find a premium on them. Buy gold from banks need more time & more research.

Overall, there are many different options when looking to buy Gold. This includes jewellers, pawn shops, coin shops, bullion dealers and banks. When purchasing Gold from a bank in Canada, it is important to understand that this process requires a lot more hassle. This means the extra money and time you would be spending compared to a regular dealer. Banks are often low on stock in retail security risk. This stock can also tie up with capital that can be utilized elsewhere. Otherwise, banks could still get your product if you are willing to pay the extra premium. Even then, it will take more than a regular amount of time for the product to reach you. 

If you are looking to make a bigger investment with Gold, it is beneficial as you would have to pay less premium per ounce over spot. This is because it normally costs less to produce large gold bars compared to smaller gold bars. 

When deciding between buying Gold coins or Gold bars, Coins are generally more premium because they are sovereigns. However, these coins are more liquid than bars and have a larger pool of clients to choose from if you decide to sell. Bars on the other hand, are cheaper and get you more gold value for your dollar. Popular coins like Canadian Gold Maples and BMO Gold bars are great ways to diversify your bar and coin collection. 

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If you are looking to make your first Gold investment, check out our broad variety of Gold bars and coins. Our popular products including BMO Gold bars, Maples, and Asahi Gold bars are a great way to start your Precious metals portfolio. Au Bullion provides some of the most competitive rates on the market and we are Canada’s premier precious metals dealers. Shop now!

Looking to sell your gold, check our Cash for gold page for more information.