Can you sell gold to a Bank?

You asked what document determines the capacity of a bank to accept "currency", and exchange denominations.

I couldn't/wouldn't print the document in it's entirety, but believe you will find your answer in the U.S. Code cited, as I believe you're capable of understanding.

Thank you for your astute detailed observation, which in brevity shows what banks are allowed to legally exchange.

I believe you didn't supply specificity of what P.M. you intended to "exchange" through U.S. Banks, so I answered in like kind brevity.

SORRY for any misunderstanding, but believe in my fallibility that an adequate answer to your query may/was supplied!

JMHO

 

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A very interesting discussion for me.

Here, in Germany, I can go to the bank as usual and exchange my gold coins or gold bars for cash. The bank gives me the current gold purchase price in euros.

Of course there are certain limits to reporting. Above a certain amount, my personal details are recorded - to combat money laundering.

And of course it has to be tradable gold (coins, bars) - gold jewelry, dental gold or similar are of course not accepted by the bank.

But generally German banks accept gold coins and bars - as I said - of course at a worse gold purchase price (and some banks charge fees, especially if you are not a customer of the bank) - but they accept gold.

 

I believe you would be surprised at the number of times an employee working in a Government capacity job (e.g. postal clerk, etc.) has asked if their action of accepting an object with a stated U.S. currency face value was correct.

 

The U.S. Code answer I partially cited also declares that P.M. can be exchanged at "face value", if U.S. legal tender value is inscripted upon the item.

 

Don't forget about $1 "golden" dollars people try to exchange for gold value

 

I had no idea! Thanks for posting this! (I don't expect it ever to be relevant for me, but very interesting all the same.)

 

Or looking for attention. I think there was a video a few years back about somebody trying to pay for his fast-food order with an AGE.

 

I can't claim to be familiar with US laws when it comes to this kind of thing. But, I would have assumed that there would be legal differences based on whether legal tender coins were minted for business purposes (Old dollars, half dollars, etc) or for bullion purposes (silver/gold eagles, etc).

Morgan dollars were minted to be dollars. While bank tellers would have an ethical obligation (in my opinion) to tell depositors that they are ripping themselves off by depositing them, it seems that banks could treat these just like any other type of money. However, while labeled as such, gold eagles were never intended to actually represent $20, therefore, I could see where it could be a crime for banks to treat them as such.

As I understand it, dollar values were assigned to bullion coins for the sole purpose of having anti-counterfeiting measures apply to them. This puts them into a different category in my mind, but like I said, I'm pretty ignorant on this subject.

I guess there's also the issue of Pre-33 gold coins, which were intended to be used in circulation (or no?). Suppose that might be another category.

 

No. Just.....no.
Start with 12CFR250.260, then proceed to FRA Section 16. After that reading assignment is complete, the subject can be peacefully concluded.

 

Posted. The simplicity is in the simplicity. The FR or its member banks can not sell PMs or offer to buy PMs.

A person comes in with PM coin, and deposits (or exchanges) for the stated face value for Cash at the same value as the stated value. Explain how the rolling value of the PM is accounted for under the FR stock member restrictions.

Yes, yes, people deposit or "cash in" pre 64 silver coins that have been saved in the coke jar, etc., without realizing the PM value. It is still accounted for at the stated face value. The pieces can be exchanged to another customer, or the Bank employee can do so (however, if the employee knowingly does so for profit and does not report to the bank authority, it is a violation of the FR By-Laws).

The PMs are separated via a TP inspection facility/depository, and reportable as excess assets on the FR Balance and must be transferred to the U.S. Treasury.

Then there are the FR non-member Banks, if you want to explore that path...loaded with IEDs.

 

This intrigues me.... I suppose that unless we officially demonetize a coin that the bank would have to accept a double eagle and deposit twenty bucks in my account then right?

 

And since I've strained my (freshly dilated) eyes reading the CFR section in question, I'll share it here. (This is dated 31 Dec 1974, so fresh on the heels of "re-legalized" gold ownership, explaining the "numerous inquiries".)

"Would not in practice" doesn't have quite the same ring as "are prohibited from", but I don't expect I'll ever find a bank "practicing" so.

FRA 16 isn't so clear to me. It does briefly mention gold, but mostly in the context of gold certificates, and it refers to "lawful money" without (re)defining it, so...?

 

Nope not reading I'm done,all these rules fry my fragile brain which is why i hated civics class so much.Politcs,banking and government isn't my thing so I'll just stay out.

 

That is the stated value.

As an aside, and at the risk of dodging the cyber rotten cabbage missiles that would be launched at me, I again mention that my comments are based on the OP question that contained the word "sell".

 

FRA 16 is 579 pages of constantly adjusted/changing Rules and Regulations. The Definition of lawful money is clearly stated in the Congressional authority granted the U.S. Treasury, and accordingly, downstream to the U.S. Mint, and any changes of any nature to U.S. Currency and Coin, including PM issuance, must in turn be approved by congressional action not previously authorized.

 

I assure you that you are in good company, inclusive of me and about 360 million U.S. Residents.

 

Perhaps I'm misunderstanding, but it was illegal to own gold other than jewelry and collector coins (and some other exceptions) from 1933 until December 31, 1974 after Gerald Ford signed P. L. 93-373. So it lasted way longer than the Great Depression years.

 

Banks are in the business of selling credit. Why would they want to buy gold or any other hard asset? If you have gold to sell, find a bullion dealer or private sale. $.02

 

Is that the case in the USA?

Here in Germany, the banks' business is very diverse.

- Buying and selling houses and apartments
- Insurances
- Share trading
- Fund trading
- Buying and selling gold and silver

All of this can be used to make money through commissions and fees. The bank sells a house or a flat and also grants the loan at the same time. Double the profit.

The bank also takes care of the customer's investments (shares, funds, gold, etc.).

But I can only speak about Germany and Europe.

 

For retail/branch banking - pretty much.