[InvestorZ]

What are your thoughts on the buying and selling of physical gold bars? I understand that buying them is relatively easy especially with dozens of online retailers like JM Bullion and who knows who else? But if you wanted to sell them back for a decent price how would you go about doing that and don't say go the Cash Man Oliver Jewelry buyer haha. I know there are many other investment vehicles to invest in golds such as gold ETFs and what have you but I'm just genuinely curious about the purchase of physical gold bars. Any insight would be much appreciated.

 

[Argonaut]

I've done it through the bank before, but I don't know if all of them still do it. I seem to remember ScotiaBank being the most gold-friendly of the five. Re-selling wouldn't be as hard as you're picturing, with a known quantity like gold you'll get a relatively fair price anywhere. I can't remember exact numbers, but when I sold ounces to a gold shop downtown my quick calculations didn't cause me to scoff.

 

[james4beach]

Recognized refiner bars in good shape are highly liquid anywhere in the world. These are bars from JM, Royal Canadian Mint, Valcambi Suisse, etc. See the Good Delivery List
http://www.lbma.org.uk/refiners-gold-current

In practice, it will be easiest to sell these to Canadian banks when you have paperwork from your purchase. I keep scanned records of all paperwork when I buy gold at Scotia and TD.

 

[Rusty O'Toole]

My local Royal Bank branch ordered gold bars for me at the London Gold Fix spot price + a small premium. It was the cheapest place to buy them and get delivery. When I bought the bars the manager told me they would buy the bars back at the LGF price any time without an assay provided they were the same brand of bars that they sell.

I checked the web sites of all the major banks and RBC was the best and cheapest. But, this was 5 years ago and things might have changed.

 

[james4beach]

The last time I purchased 1 oz bar (at Scotia Plaza in downtown Toronto) the net price, after all fees, I paid was 2% to 3% above the spot price of gold. Bars (aka wafers for the small ones) trade incredibly close to the spot price of the metal.

Scotia used to sell RCM bars, which I loved, but lately they have started selling Scotia-branded bars. On the plus side, it comes in a hard plastic case with certificate and is still from a known refiner. On the down side, it's Scotia branded with their logo on it, and I'm a bit worried this would impede my ability to sell it in the global market. Does anyone have thoughts on this?

Rusty, I will get a quote from my local RBC next time I'm buying. What kind of bar did you get as a result? What was the refiner?

 

[EngPhysGuy]

Thanks james. I'm interested as well what others have found to be the lowest premium on spot to pay for gold bars. I was always under the impression Scotia was the cheapest and easiest (Toronto isn't far for me to go).

 

[Rusty O'Toole]

james I bought bars because they had no sales tax, coins have sales tax. There were different brands like Johnson and Mathey and other well known brands. Price was the 10am LGF price plus a $35 per ounce premium. There was a delivery charge of $15 but that stayed the same whether you bought one bar or 100. I was buying 1 oz 'wafers' as they call them.

This was several years ago and things may have changed. At the time, my local RBC had never sold gold over the counter so it was a new experience for them, since then they have had several more customers.

I did a search and RBC had the best prices and service, Scotia the worst. This surprised me as Scotia Mocatta is supposed to be an industry leader but that is how it was.

 

[Joe Black]

I inherited a gold bar from my mom. Although it was originally bought at a TD Bank but ironically I found I couldn't get it redeemed at one of their branches. I eventually found a place (Northern Gold Exchange) that bought it from me at a fair price.

Don't go to a pawn shop (like the TD people advised me to do), they will offer you a price hundreds below the current rate (at least the one I went to did).

 

[Koogie]

I inherited a gold bar from my mom. Although it was originally bought at a TD Bank but ironically I found I couldn't get it redeemed at one of their branches. I eventually found a place (Northern Gold Exchange) that bought it from me at a fair price.

Don't go to a pawn shop (like the TD people advised me to do), they will offer you a price hundreds below the current rate (at least the one I went to did).

I myself have bought gold and silver bullion from Canadian PMX in Richmond Hill (https://www.canadianpmx.com/)
They have been okay to deal with and have a full array from the various mints (some good deals on Perth mint stuff).

Friends and their families have used them for about 10 years or so (it is where I got the referral) and they all seem pretty happy and repeat customers.

YMMV.

 

[EngPhysGuy]

I myself have bought gold and silver bullion from Canadian PMX in Richmond Hill (remove link)
They have been okay to deal with and have a full array from the various mints (some good deals on Perth mint stuff).

Friends and their families have used them for about 10 years or so (it is where I got the referral) and they all seem pretty happy and repeat customers.

YMMV.

At Canadian PMX I see the cheapest 1oz bar is the Perth Mint Gold bar at $1732, with gold spot price at ~$1666 (Using goldprice). That's about a 4% premium on spot price. Seems a little rich to me.

Is there a reason why the Perth Mint are >$10 cheaper than the Royal Canadian Mint oz bars - easier to sell on the open market? Do people think this premium is worth it?