We can safely say that gold is one of, if not the best investments you can make. It is often referred to as the “safe haven” asset due to its remarkable resistance against inflation. We’ve also seen several examples of gold staying stable and even rising during recessions, even when the rest of the economy was on a downward slope.
So, what are your options if you want to invest in gold? Can you purchase gold bars from the Bank of America? Are there better alternatives out there? Let’s investigate and find out!
Understanding Gold Investment
As we mentioned above, gold is one of the most reliable investments you can make in [yr] as it offers benefits that no other type of investment does. The biggest of these benefits is its ability to protect your wealth from inflation. Here’s what we mean:
Hedge against inflation
Since the year 2000, the value of the dollar has dropped by about 45%. In other words, if you stored 1,000 USD in 2000, the money would only have purchasing power equal to about 550 USD in [yr].
On the other hand, if you purchased gold with that 1,000 USD instead, your investment would be worth more than 5,700 USD today. That is an increase of over 570% instead of a loss of 45% caused by inflation.
Protection from recessions
Gold can also protect your assets in times of economic downturn. After the 2008 recession, for example, most assets like stocks and real estate were rapidly dropping in value. Despite this, the price of gold actually went up from about 800 USD before the recession to hitting a peak of over 1,800 USD by August 2011.
Different forms of gold investment
The two primary types of gold you can purchase are physical gold and paper gold. Physical gold includes things like bullion coins, bars, and ingots.
On the other hand, paper gold takes the form of ETFs and gold certificates. These allow you to trade gold without having to physically handle the metal and pay for its storage.
Bank of America's Services Overview
Coming back to Bank of America, it is one of the largest financial institutes in the US and even the rest of the world. These are the primary services that it offers to its customers:
Bank of America offers a wide range of retail banking services, including savings and checking accounts, mortgages, and personal loans.
Corporate and investment banking
The bank also provides services to corporate clients. Some notable examples of these services include investment banking, advisory services, and capital raising.
The Merrill Lynch division of Bank of America offers wealth management services to its clients. These can include financial planning, investment management, and retirement planning.
Lastly, the bank also issues credit cards with various features and rewards programs to both corporations and retail customers.
Does Bank of America sell gold?
Notice how nearly all of these services involve cash and aren’t related to gold or other precious metals. This is because the Bank of America does not sell gold bars directly. That said, this hasn’t always been the case.
In the 19th and early 20th century, fiat currency was completely backed by gold in most countries. So, if you had a dollar, you had the ability to trade it for the equivalent amount in gold with a bank.
But, as the gold standard was abolished and the dollar became the primary currency worldwide, banks stopped carrying gold due to factors like complex storage requirements and liability issues.
Buying Gold Bars: Options and Alternatives
So, if you cannot buy gold from Bank of America and other similar banks, what other options do you have? In our experience trading gold, these are the best ways to purchase gold bars, coins, and ingots in today’s market:
Specialized bullion dealers are one of the most common ways of purchasing gold bars. These dealers offer a variety of weights and brands that you can buy online or in physical stores.
Mints and refineries
Government mints and private refineries are the ones that actually produce gold bars with specific designs and purity. You can buy directly from these sources for the assurance of quality.
If you’re looking for rare gold bars that are from a certain year or mint then auction houses might be your best option. Though, the price of these rare bars will be significantly more than the face value of gold.
You can also purchase gold directly from other people who want to sell their gold assets. However, we don’t recommend this method as it comes with a very high risk of getting scammed.
Bank of America's Policy on Gold Bars
To our knowledge, Bank of America does not sell gold bars or any other form of gold to its retail customers. This is also true for both online and in its many branches. That said, the wealth management services of Bank of America might include investments into paper gold, but we don’t think that counts as “selling gold.”
We also found similar policies from all of the other major retail banks in the US including JPMorgan Chase, Wells Fargo, Goldman Sachs, and Capital One.
Factors to Consider When Buying Gold Bars
If you’re interested in purchasing gold bars, we recommend bullion dealers and mints as the best options. But, before you spend any money, make sure to consider the following factors:
Make sure to buy gold that’s pure with a rating of at least 99% to ensure the best value for your money.
Think about a place to store your gold safely. We suggest looking at the top precious metal storage companies.
It’s also a good idea to insure your gold assets to avoid any unexpected losses. The last thing you want is to lose your fortune in a single break-in.
Only purchase authenticated bars that come with the right certifications to ensure that you’re getting what you paid for.
Risks and Benefits of Investing in Gold Bars
Before we finish this guide, here’s a summary of the risks and benefits of investing in gold bars:
Role of gold in an investment portfolio
The primary role of gold bars and other forms of gold in an investment portfolio is to act as the safety net. You can dedicate a portion of your investment to gold as a safeguard against unexpected market conditions. On the other hand, the other parts can be invested in more volatile assets like stocks and crypto to generate profit.
To summarize, you cannot buy gold bars from the Bank of America. But, there are many other ways to make this purchase. We suggest looking into gold bullion dealers and mints that sell to investors directly. But, make sure you’re aware of the risks and challenges that come with gold ownership.
If you want to learn more, read our article on the best precious metals companies to get a better insight into the gold market.