What is gold? Gold is simply a basic chemical element found in deposits of rock foundations. But its stability, scarcity, and beauty have made it one of humanity's most sought-after commodities for thousands of years. Today, it continues to hold luster as one of the world's most prominent precious metal investments. As a modern asset class, gold prices generally move independent of stocks. So this gilded metal makes for a wise investment in any well-diversified investment portfolio, especially during a market downturn.
Are you wondering if gold is a good investment for you? Then be sure to check out Everything You Wanted to Know About Gold Bullion, A Beginner's Guide to Precious Metals Investing, and much more in our Knowledge Center.
Gold bullion is a standard weight and fineness of the metal that you buy for the current spot price plus the premium. The premium covers the cost of fabricating, minting, and shipping the product. You can buy gold online in the form of coins, bars, and rounds.
Generally speaking, gold coins are bullion in a coin shape. Gold coins were a primary form of currency for centuries. Today, most investors buy coins as an investment and as a hedge against inflation. Many gold coins carry a legal tender face value. But as the value of the metal usually exceeds the face value of the coin, they aren't used in typical financial transactions.
Mints produce coins with dies that forcefully strike a blank piece of metal. The obverse (front) design of the coin uses one die, and another die is for the reverse (back) design. The die strikes bullion coins once, and strikes proof coins two or more times.
Gold bullion coins usually have a fineness of .999. However, some coins are produced with a fineness of .9999, as in Canadian Gold Maple Leafs, American Gold Buffalos, and British Gold Britannias. You can buy gold coins with a fineness of .999 or more in a Precious Metals IRA.
Mints produce gold coins in a variety of unique designs, with sizes ranging anywhere from fractional weights to a kilo or more. Some of the most common sizes include 1-ounce, ½ oz, ¼ oz, 1/10 oz, and 1/20 oz. But most investors buy gold coins in weights of 1-ounce or less.
Many factors will determine which coins are best to buy for you. The condition, purity, and the producing mint can vary widely. So investors must take great care if they choose to buy gold coins online from unknown sources. Rest assured that when you buy from Provident Metals, you are buying products that are produced by the most trusted mints in the world.
Coins are usually more expensive than bars because they have more collectible value. For example, old, rare coins often sell for a higher price than bars because of their historical significance, one-of-a-kind design, or scarcity.
Coins are often made with intricate designs, which cost more to produce than their more austere bar cousins. And mints produce many new coins for only a limited time or in limited amounts. It's this scarcity that makes them extremely desirable (and valuable!) to collectors and history buffs. Also, federal governments guarantee the face value, weight, and purity of sovereign coins. All these factors often result in higher premiums on gold coins than gold bars. Deciding whether it's better to buy coins or bars is based on your investment goals and preference. Research the pros and cons of each to determine which option best suits your needs.
Why buy gold bars? The answer for most investors is value. If you would like to buy gold bullion as an investment only, then you may find that gold bars are one of the most cost-effective ways to own the physical metal. That's because bars generally match sovereign coins in content and purity, but cost less thanks to low production costs and less elaborate designs. You can buy bars in a variety of weights and styles to suit any budget and investment goals.
Gold bars are commonly refined into two types: Cast bars and Ingots. Mints produce cast bars in a rugged style by melting the metal in a large vat and then pouring it into prefabricated molds. Most cast bars are stamped with only a simple refinery logo and the weight, purity, and metal content.
Gold ingots start out as cast bars, but they are further refined with sharper edges, a more brilliant finish, and intricate design elements. As you might imagine, cast bars cost less to produce and usually sell for lower premiums than minted ingots. Regardless of how they're made, most gold bars are 99.99% pure.
You can buy gold bars in a variety of sizes, ranging from 1/2 gram to 1 kilo or more. However, most investors buy bars in weights of 1 ounce or less because they are more affordable and easily-traded.
Gold bars also come in a wide range of beautiful designs. From exquisite PAMP Fortuna bars, to the world-renowned swan logo and jumping kangaroo on Perth Mint gold bars, to beautiful engravings in both English and French on Canadian gold bars, there is no end to the types of bullion bars that will suit your style.
Wondering which gold bars are best to buy? It all depends on your style, budget, and investment goals. No matter what you choose, you can rest assured knowing that you are investing in a commodity that has stood the test of time and continues to be the among the safest assets to fund your investment portfolio.
When you buy gold bars, the price differences you see are usually due to the size and weight of the bar. The quality of the finish, popularity of the design, and the reputation of the producing mint also go into determining how much they cost. Browse our inventory to determine which one is best for your budget.
Counterfeiting techniques are becoming more and more advanced. So many investors have growing concerns about the authenticity of their precious metal holdings. The best way to ensure that your gold bullion is real is to only buy from a reputable and accredited dealer like Provident Metals. But there are also a few simple ways to test the authenticity of your metal at home. You can do a size test by comparing the dimensions and weight of your bar to charts available online. Or, you can test your bullion using sound, since gold will make a pinging sound when struck. And real gold does not have any magnetic properties, so it should not be drawn to a magnet.
Gold rounds are a convenient, low-cost addition to any investor's precious metals portfolio. Rounds are circular bullion discs of varying weights and designs. Most rounds are privately-minted, though they are sometimes also produced by government mints.
Mints produce gold rounds to an equally high purity standard as coins. However, they have no “face value”, which means they are not recognized as legal tender and can't be spent as currency. Many buyers feels that rounds are a good investment because they can enjoy a lower premium and choose from a wide range of exquisite designs at the same time.
You can buy gold rounds in many different sizes. Like coins, most investors buy 1-ounce rounds for their affordability and stackability. Deciding which rounds are best to buy for you all depends on your style, budget, and investment goals.
Many buyers prefer to buy rounds over coins simply because rounds get them more metal for their money. You can usually buy rounds with the same weight, purity, mirrored finish, and gorgeous designs as many sovereign-minted coins, but at a lower premium over spot price. Despite being produced by private mints, rounds are widely traded and trusted in the bullion industry.
Provident Metals isn't just a top retailer of precious metal coins and bars. You can also sell your gold back to us at industry-leading prices. So when you're ready, you'll find that it's just as easy to sell to Provident Metals as it is to buy from us. Call us to lock in one of the best buy prices in the industry.
Look no further. Whether you're looking to buy gold bullion to invest, to build a collection, or simply for fun, Provident Metals is a secure place to begin your precious metals journey. We've shipped over 1 million orders through our secure online ordering process, and we are proud to maintain an A+ rating by the Better Business Bureau.
We proudly offer coins, rounds, and bars from the most trusted and respected mints around the world. With so many products to choose from at industry-leading prices, your only challenge will be deciding which one best suits your style. Start shopping with your trusted friend in the bullion industry today!