With the recent rally in gold prices, maybe you’ve found that your favourite gold dealers were backed up with 3 and 4 week waits on delivery. Now there’s another alternative for Canadian clients – you can purchase gold directly, online, through Scotiabank’s foreign exchange division, ScotiaMocatta.
It’s not surprising that Canada, home to many of the world’s largest gold producers, would be an innovator in the purchase of gold for retail and investment purposes for private investors. And Scotiabank, which gained a reputation during the 2008-2009 recession as one of the world’s most stable banks, is also a smart choice for the establishment of direct gold sales. It remains to be seen whether other banks will follow suit, or whether this will give the Bank of Nova Scotia yet another competitive edge.
Individual Investors Can Buy Gold Online Electronically Through Scotiabank
All you need to do is log on to ScotiaMocatta’s estore and an authentication process verifies your credit card, home address and other information. You can then add coins to your shopping cart (up to a current maximum of $6,000) and then you can use your credit card to pay for it.
The coins come from the Scotiabank mint and are 24 karat, 99.99% pure gold. The gold is delivered by courier service and the delivery costs will depend on your location.
Yesterday, BNN spoke with Barry Wainstein, head of foreign exchange at ScotiaMocatta, who answered some questions about Scotiabank’s new gold eStore. Read to the end for a very surprising fact about Scotiabank.
Q: Do I Need To Be A Scotiabank customer to buy gold? A: No.
Q: Can I Buy It With a Credit Card? A: Yes.
Q: Does Scotiabank store it in vaults, or do they deliver it? A: Scotiabank delivers the gold via insured courier service, just like other reputable gold dealers.
Q: Why is there a $6,000 limit? A: At the present time, this service will be focused on gold purchases as gifts. Of course, at $1000/oz., the service is obviously still suitable for small investors, too, who wish to just buy one or a few gold coins or wafers at a time.
Q: Does Scotia buy gold back, too? A: Yes, but not through the online site. You’d have to go into a branch that specializes in this. They do not buy gold jewelry, however.
Q: What is ScotiaMocatta? A: ScotiaMocatta is Scotia’s Precious Metals division, and according to Wainstein, is the largest physical gold trader in the world, buying and selling gold in New York, London, Hong Kong and Shanghai, not just Canada.
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