Scotiabank refuses to buy back Ontario woman’s gold
When an Ontario woman bought gold and silver from her bank nine years ago, she always assumed she could sell it back when she was ready.
But she was shocked to be told that Scotiabank, where she bought five ounces of gold and five ounces of silver, was no longer in the precious metals business.
Both the gold bar and silver coins feature the Scotiabank logo.
“I bought gold and silver from Scotiabank. Why hasn’t Scotiabank informed me that they are closing their precious metals division?” said Lynda Gatehouse of Whitby.
Many people invest in precious metals as part of their portfolio by buying shares in gold and silver companies, but you can also buy physical gold and silver bars or coins.
In 2013, Gatehouse paid $22 per ounce for five ounces of silver for a total of $110 and $1,376 per ounce for five ounces of gold for $6,880.
Gatehouse said she was doing estate planning and decided to sell the gold and silver and gift her son with the proceeds, but was frustrated when her bank didn’t give her instructions on what to do with the precious metals.
“I wasn’t given any information on where to take it for sale, but they said I could take it to a pawn shop, and I’m sorry I just don’t work that way,” Gatehouse said.
CTV News reached out to Scotiabank and a spokesman said: “In the second quarter of 2020, Scotiabank announced the closure of its metals business. Other financial institutions continue to trade precious metals.”
Canada’s other four major banks still buy and sell gold, but they have different policies and are only allowed to buy back gold that has been purchased from them.
In addition to jewelry stores and pawn shops, there are bullion dealers who specialize in buying gold and silver, which is where Gatehouse ended up on the advice of her financial planner.
Gatehouse sold the gold and silver and paid the dealer a commission. The five ounces of silver she bought for $10 in 2013 rose just $15 over nine years to $125.
However, the five ounces of gold rose from $6,880 to $10,800, up from $3,920.
Gatehouse still thinks her bank could have done more to help her and other customers who bought her gold and silver.
“I’m really disappointed that they didn’t let me know they were closing their department and leaving us stranded,” Gatehouse said.
If you have gold and silver and want to sell it, it is important to know the spot price as it fluctuates every day. You can also get three estimates to ensure you get the best possible price.