How to Buy Gold Bars as an Investment

Posted on |Business and Finance|, | 0

Buy-Gold-Bars-as-InvestmentIf you are investing in physical gold, then bars are a great choice. Gold bars are the leader of the industry, even though coins also present an attractive option. From banks to investors, people want to buy gold for storing or selling in the future. You could reap many benefits when you decide to buy your own bars as an investment.  

Choose the Appropriate Gold Bar Size

Gold bars are available in various weights and sizes. ETFs, exchanges, and central banks prefer larger bar sizes. In general, a big bar has a small premium. It is because producing a kilo bar is less expensive than a one-ounce bar. However, it does not mean that you purchase the largest bar you can find.

Smaller bars provide more divisibility than larger bars do. You are liquidating a huge investment once you sell a large bar. Therefore, when exchanging the exact amount of bar for the currency you want, it is more beneficial to sell many smaller bars. Another good tip is to purchase multiple 1-ounce bars and sell them in the future whenever necessary. You can buy both large and small ones, provided you have a high net worth.

Here are a few reasons for buying smaller-sized bars:

  • Reduce the risk of counterfeiting. Large bars are worth more money, so they are more attractive to counterfeiters.
  • Less attractive to buyers. While gold is the leading precious metal, few investors can afford a large bar, for example, a 100-ounce one. You can have many potential customers if you are offering smaller bars.
  • No need for an assay. Big bars require an essay if you want to sell them. An assay is an inconvenient process that delays your payout and only adds expense.

Gold Bar Brands Are Vital

It is important that the bars you buy have proper stamping and a well-recognized hallmark. It means that the gold bars are from a reputable company. There are private mints that do not include these details on their products, which could mean they are of low quality or not pure gold. Make sure the gold you are buying is real. Those bars that have no markings indicate that you have no idea what kind of product you are getting. Also, your customer in the future would likely request an assay.

Stamping means the gold will have its refiner, purity, registration number, and weight stamped on it. On the other hand, a reputable hallmark signifies the brand of the precious metal, which is the manufacturer or refiner that minted it. It means you are purchasing a high-quality bar, and selling them becomes much easier as it is exceptionally liquid. You can practically sell your bars anywhere in the world. Also, when you purchase from a reputable company, this removes the hassle of getting ripped off. An established hallmark will come with the necessary stamping that a precious metal should have.

Gold bars are a highly liquid and tangible asset. It is one of the most popular forms of money known to mankind. In case of a financial crisis, gold can protect your investment portfolio. Therefore, owning these precious metals is an extremely wise move in these modern times. Keep in mind buying real ones from a reputable company ensures you enjoy the benefits of this investment.

Emily Stuart Author

Emily Stuart is an experienced and independent content writer for some popular online communities.

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