Gold has proven time after time that its value and prestige remain undiminished throughout history, unlike any other asset class. Many investors buy gold bars or coins as a hedge against economic instability; although short-term fluctuations might make gold volatile, over the long haul its storage value proves its strength.
If you’re considering buying gold bars for investment purposes, dive in with us, as we will share some tips that will help you.
Choosing the Right Gold Bars
Gold bars come in different sizes, from 1 gram up to 400 ounces. The most commonly traded sizes are 1 ounce, 10 ounces, and 100 grams. Some key factors when selecting gold bars:
- Purity: Most gold bars are .9999 pure or 24 karat. Anything less than .9995 is considered low purity. Stick with reputable refiners that certify purity.
- Brand: Well-known refiners like PAMP Suisse and Credit Suisse offer added confidence and liquidity. Their gold bars may sell for a slight premium.
- New vs Used: Newly minted bars sell for a small premium over used bars from secondary markets. Both offer the same intrinsic gold value.
- Design: Smaller bars tend to have more intricate designs while larger 400 ounce bars have a basic design.
Finding a Reputable Dealer
Always buy gold bars from a reputable dealer. Your dealer should:
- Have an established track record dealing in precious metals
- Provide certifications of authenticity from recognized mints and refineries
- Offer secure storage and insurance options
- Be transparent about pricing and fees
Beware of dealers advertising prices that are much lower than the market price. This is a red flag for counterfeit bars. Online dealers may offer lower premiums but watch out for high shipping and handling fees.
Storing Your Gold Bars
Unlike stocks or bonds, physical gold requires proper storage. Here are some common options:
- Home Storage: You can keep small amounts at home in a safe, though not advised for larger quantities.
- Bank Safe Deposit Box: Check restrictions on contents and insurance coverage. Vault access restricted to bank hours.
- Secured Storage Facility: These offer 24/7 access and insurance against theft. Cost is reasonable if storing substantial value.
- Gold IRA: Allows you to store gold in an account overseen by a custodian, with tax advantages.
No matter where you store, keep details of your holdings private and discrete. Also, be sure to insure your gold bars against loss or theft.
Selling Gold Bars
When the time comes to sell your gold bars, you can sell back to dealers, jewelers, pawn shops, or through an online gold exchange. Compare buyback rates, fees, and reliability of the buyer. Reputable dealers will resell your branded bars for fair market value.
Gold bars offer a smart way to diversify investments and preserve wealth over the long run. Do a thorough research when buying and storing physical gold to realize the full benefits this asset can provide. With prudent decision-making, gold can offer stability to investment portfolios for generations to come.