Which Canadian Bank Sell Precious Metals?

This article will look at the gold and silver offerings from Canadian banks and talk about why specialty gold dealers like Sprott Money have advantages that these financial institutions do not.

Precious Metals from Canada's Big Banks

Canada's Big Five banks are the Bank of Montreal (BMO), Royal Bank of Canada (RBC), Canadian Imperial Bank of Commerce (CIBC), Scotiabank, and Toronto-Dominion (TD) Trust Canada. Here's a closer look at buying gold and silver from each.

• Scotiabank was once one of the biggest sources for precious metals in Canada, but it stopped selling gold and silver in 2020. It's no longer possible for retail investors to buy a Scotiabank gold bar.
• TD precious metals are available online. Customers order and get delivery to their home or a bank branch. They can also order TD gold or TD silver and get a certificate of ownership while the actual metal remains in the bank's vault.
• CIBC's precious metals include coins, bars, and ownership certificates. Customers can order online for delivery or buy directly at a branch.
• RBC sells coins and bars at its branches, but certificates are only available to institutional investors.
• Some divisions under the BMO umbrella sell coins and bars for delivery. They also offer storage services.

As the gold price continues to increase, purchasing from one of these sources might seem tempting. Investors should pause and do their research before making a purchase. They'll find that precious metal dealers are often a better option.

Why Buy from a Gold Dealer Instead

When investors buy gold, silver, or platinum from a bank, they typically do so on the bank's terms. Precious metals are not a bank's main source of revenue, especially when it comes to retail investors. Therefore, the products are limited, and prices may not be up to date.

Here are the advantages buyers get when working with a specialty dealer.

• Lower premiums: The premium is the cost of a precious metal product above the spot price. If 1 oz of gold costs $4,000, and a 1-oz coin costs $4,500, the premium is $500. Because they have higher overhead and sell fewer metals, banks usually charge a higher premium. Specialty dealers have lower premiums, meaning the overall cost of the gold or silver is lower.
• Better product selection: Gold dealers have many products from different mints around the world. This is attractive to people who enjoy collecting coins or bars with different designs and from different sources. It is also ideal for those buying special gifts for a loved one. The different choices also mean buyers can easily find something that fits with their budget.
• Lower prices: Good gold dealers will publish the spot price on their website and change their prices according to the latest market data. This also means they give buyers much more clarity when it comes to price and premium.
• More services: Established gold dealers offer more services. For instance, Sprott Money buys precious metals in addition to selling them. They also offer storage solutions so that investors don't have to worry about securing their gold at home.
• Easier selling: Most banks are happy to sell gold and silver. However, they may not buy it back. Dealers like Sprott Money have an established process for buying precious metals from customers. This makes it easy for investors to keep their portfolio balanced based on the current market.
• Better customer service: Gold dealers are experts in the industry. They can answer buyers' questions, make recommendations, and explain things like purity and weight.

For all these reasons, established dealers like Sprott Money are a better source for gold, silver, and platinum than banks.

Finding the Right Precious Metals Dealer

Investors looking for the best place to buy gold coins will agree that dealers are better than banks. However, not all dealers are equal. Those wanting to invest in gold in Canada need to find a reputable dealer. What does this mean?

• A reputable dealer should be well-established in the industry. They should have at least a decade of history and have built a reputation during that time. Sprott Money, for example, has been in business since 2008 and has become one of Canada's leading dealers.
• The dealer should also have transparent pricing. Prices, weight, origin, and other details should be clearly marked on the website. Sprott Money also offers up-to-date spot prices for gold, silver, and platinum so that buyers can see the latest prices before buying.
• Reputable dealers offer education and advice, not sales pitches. Buyers should look for dealers whose websites feature educational resources, informational blog posts, and market analysis.
• The dealer should have products from government and private mints. For instance, Sprott Money sells products from government mints like the Royal Canadian Mint and Perth Mint, as well as respected private mints like the New Zealand Mint and Scottsdale Mint.

A gold dealer that checks all these boxes will typically be a better place to buy precious metals than a large bank.

Find the Best Precious Metals at Sprott Money

Whether you are buying precious metals as a gift or for investment, Sprott Money is an excellent source. We are one of the most respected names in the industry and have a track record dating back to 2008. Choose from a wide range of gold, silver, and platinum products from many of the world's best mints with transparent pricing. We also have a convenient process for buying your precious metals and provide storage services for investors who need a secure place to keep their collection. Browse our selection of precious metals and reach out to learn more about our services today.