Can You Buy Gold Through Your Financial Advisor? The Complete Guide to How Physical Gold Really Works
Investors often assume they can buy anything through their financial advisor or stockbroker—from stocks and bonds to real estate, crypto, or precious metals. But when it comes to physical gold and silver, the rules are very different.
This article explains why you cannot buy physical bullion through your stockbroker, how gold licensing works, where you can buy it safely, and how to avoid overpriced or unregulated channels. At the end, you’ll find a detailed FAQ to help guide your next steps.
Why You Cannot Buy Physical Gold Through a Financial Advisor
1. Advisors Are Licensed for Paper Assets—Not Physical Commodities
Financial advisors and traditional brokers are trained and licensed to sell securities. This includes:
- Stocks
- Bonds
- Mutual funds
- Annuities
- Exchange-traded funds (ETFs)
- Other market-based or insurance-based products
These products fall under the authority of:
- FINRA
- The SEC
- State securities regulators
Physical gold and silver, however, are commodities, not securities. To legally transact physical metals, a seller must operate as a precious-metals dealer, not a stockbroker.
Your advisor is simply not licensed to offer physical bullion, and that’s why they won’t (and legally can’t) sell you gold coins or bars.
2. Why Stockbrokers Push Gold ETFs Instead
Because advisors cannot sell you physical bullion, they typically recommend one of the following:
- Exchange-Traded Funds (ETFs) backed by gold
- Mining stocks
- Mutual funds invested in the gold sector
These products fit their licensing, but they do not give you ownership of physical gold. Instead, you own a share of a financial instrument that tracks the metal’s price.
Gold ETF ≠ Physical Gold
With an ETF:
- You do not own the metal.
- You cannot take delivery of coins or bars.
- You hold a paper product that represents exposure to gold.
It’s essentially Wall Street’s version of gold—not the real, tangible asset itself.
3. If You Want Physical Gold, You Need a Precious-Metals Dealer
To buy investment-grade bullion, you must purchase from a licensed and reputable precious-metals dealer.
These companies specialize in:
- Gold bars
- Silver bars
- Gold coins
- Silver coins
- IRA-approved bullion
- Secure vault storage
- Wholesale pricing
- Buyback programs
A reputable dealer offers:
- Transparent pricing
- Real-time quotes
- No-pressure sales
- Fast delivery
- Certifiable investment-grade products
Your financial advisor may refer you to a dealer, but they cannot facilitate the transaction themselves.
4. Why Licensing Matters When Buying Physical Metals
Precious-metals dealers must comply with:
- Anti-money laundering (AML) rules
- Commodity trade regulations
- Purity and authenticity standards
- State-level commerce and bullion regulations
This added layer of oversight protects you as an investor.
Buying from someone without proper licensing becomes risky because:
- Prices are often inflated
- Products may be non-investment-grade
- You may be pushed into collectible coins
- Buyback guarantees may not exist
- Delivery delays and liquidity concerns can occur
This is also why coin shops rarely offer the best value—their premiums are higher and their inventory is limited.
5. Physical Gold vs. Gold ETFs: Key Differences
| Feature | Physical Gold | Gold ETF |
|---|---|---|
| Ownership | You own real metal | You own paper shares |
| Storage | At home or in vault | Held by the ETF custodian |
| Counterparty Risk | None | High—depends on fund issuer |
| Premiums | Above spot price | Small ETF management fee |
| Use in retirement accounts | Yes (in a self-directed IRA) | Yes (through traditional brokerage IRA) |
| Purpose | Wealth protection, tangible asset | Market exposure, trading |
If your goal is long-term wealth preservation, physical gold is typically superior because it exists outside the financial system.
6. How to Buy Physical Gold the Right Way
✔️ Step 1: Choose a Reputable Precious-Metals Dealer
Look for dealers with:
- Years in business
- Transparent online pricing
- Clear product descriptions
- Fast and insured shipping
- Strong customer reviews
- IRA-compatible offerings
✔️ Step 2: Decide on Your Products
Most investors choose:
- 1-oz gold bars
- 1-oz American Gold Eagles
- 10-oz silver bars
- 1-oz silver coins (Maples, Philharmonics, etc.)
Avoid collectible coins unless you’re deliberately becoming a collector.
✔️ Step 3: Choose Delivery or Storage
You can:
- Store metals at home
- Use a private storage vault
- Hold metals inside an IRA-approved depository
✔️ Step 4: Ensure Liquidity
Good dealers allow you to both buy and sell through them at any time.
7. Why Financial Advisors Still Play a Role
Although advisors cannot sell you bullion, they can help you:
- Position precious metals within your overall portfolio
- Decide how much gold to own
- Structure retirement accounts
- Balance your risk exposure
- Avoid scams and overpriced products
Think of your financial advisor as the strategist—not the metals dealer.
Frequently Asked Questions (FAQ)
Can my financial advisor help me buy physical gold?
They can recommend, but they cannot sell. You must use a licensed precious-metals dealer.
Why can’t my stockbroker sell physical gold?
They hold securities licenses under FINRA/SEC—not commodities or metals-dealer licensing.
Can I buy gold ETFs through my broker?
Yes. ETFs are paper assets they are licensed to offer.
Is a gold ETF the same as owning physical metal?
No. An ETF tracks the price of gold, but you do not own actual metal.
Can I buy physical gold inside my IRA?
Yes, but only through a self-directed IRA with a precious-metals custodian.
Do I need a special account to store physical gold?
If it’s for retirement, yes. For personal ownership, no—you can store it at home or in a private vault.
Can coin shops sell me physical gold?
Yes, but they often charge higher premiums and carry limited inventory. Most investors prefer reputable online dealers.
Are there regulations that govern precious-metals dealers?
Yes. Dealers must follow commodity, AML, and state commerce regulations, which brokers do not participate in.
What type of gold should I buy?
For investment purposes:
- 1 oz bars
- American Gold Eagles
- Canadian Maple Leafs
Avoid high-premium collectibles unless you are intentionally buying numismatics.
Should I trust a broker who tries to sell me coins anyway?
If a stockbroker offers to sell you physical bullion directly, that’s a red flag—they are operating outside their license.
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