Are you new to investing in gold? Learn why gold bars are a great place to start.
For centuries, gold has been one of the most popular commodities when it comes to accumulating and building wealth. For investors who are interested in purchasing gold, one of the most economical and convenient forms to buy are gold bars.
There are many types of gold bars available, all in various sizes that fit the needs of individuals with different budgets. In addition, since gold bars are typically priced lower per ounce than gold coins or some numismatics, it makes them an even more attractive investment.
Gold Bars By Weight
There are two main types of weight classes available for gold bars: grams and ounces. Within each class, there are many different sizes, shapes, and brands available. An investor can buy gram gold bars fairly inexpensively, or ounce bars that can cost as high as six figures. The price of each bar depends on the weight and purity of gold that is used.
Gold Bars by Mint
When shopping for gold bars, products may also be categorized by which mint produced the bar. Gold bars are manufactured by reputable private and sovereign mints. Popular mints for gold bars of all sizes include PAMP Suisse, the Perth Mint, and the Royal Canadian Mint.
Gold Bar Premiums
One factor to consider when purchasing gold bars is the premium added to the price of spot gold. Bars that are smaller in size, such as 1 to 5 gram bars, will usually include a higher premium than a 5 or 10 troy ounce bar.
Some gram bars may be more collectible and have a limited supply. This may make them more attractive to an investor or collector and escalate the premium on the bar due to demand.
Gram Gold Bars - Advantages and Sizes
Gram gold bars are a popular investment for many individuals who have a specific price point they can spend. The constant fluctuation of spot gold prices does not affect gram gold bars as much as it does larger sized bars. With a lower price point, gram gold bars also make ideal gifts or a way for new investors to expose their portfolio to gold without breaking their budget.
1 Gram Gold Bar
One gram gold bars are typically the smallest sized bars (.032 troy oz) that an investor can purchase. The premium on these bars is higher than other gold bars since it takes just about the same amount of effort to process this size as it does for a bar that is larger. The advantage of purchasing bars of the size is that small quantities can be easily liquidated.
2.5 Gram Gold Bar
Buying 2.5 gram gold bars made of .9999 fine gold offers investors a hedge against inflation like larger bars, but at a price point that is more manageable. While slightly more than the 1 gram gold bar, 2.5 gram bars are still very affordable and can usually be bought for between $100 and $150, depending on spot price.
5 Gram Gold Bar
The price of 5 gram gold bars typically falls somewhere in the $200 to $250 range, depending on spot price, and offer a perfect way to add protection for your future at an affordable price point.
10 Gram Gold Bar
The 10 gram gold bar provides a nice entry point for a gold investor. At just under 1/3 of a troy ounce, a person will be able to feel the solidity and weight of this bar, allowing you to grow and diversify your portfolio without breaking the bank.
20 Gram Gold Bar
Another popular option for individuals who want to purchase less than an ounce of gold is the 20 gram gold bar. It weighs .64 troy ounces. As one of the larger gold bars offered in grams, it is a convenient investment for individuals who are accumulating gold on an ongoing basis.
For investors who are more serious about investing in gold, even larger quantities of gold are available. Consider buying 50 gram gold bars, 100 gold gram bars, or 1 kilogram gold bars. The 1 kilo gold bar is 32.5 troy ounces. While it may be similar in size to a smartphone, it will feel heavier due to the high density of this precious metal.
Typically, gold bars will not be produced beyond this size and weight for individuals who want to invest in gold. There is a 400 oz bar, but it is used for trading at the CME.
Troy Ounce Gold Bars - Advantages and Sizes
Gold bars that start at one ounce and move up in size are a popular option for long-term investing. Their price point fluctuates on a more consistent basis since they are more closely tied to the fluctuations of spot gold due to their weight and the quantity of gold contained within each bar.
The advantage of purchasing one of these bars is that a person will pay a lower premium due to the higher quantity of gold that is present in the bar. One troy ounce gold bars are produced by many different mints and will contain purity levels ranging from .999 to .9999 gold.
Investors should understand that a “troy ounce” differs from the standard (avoirdupois) ounce that is used for everyday items. One troy ounce is equal to 31.1034768 grams, whereas the avoirdupois ounce is lighter at 28.349523125 grams.
1 Troy Ounce Gold Bar
By far, the 1 oz gold bar is the most common sized gold bar that is traded and used for investments in many countries around the world. Its affordable price will fluctuate in tandem with the spot price of gold.
10 Troy Ounce Gold Bar
At 311 grams, the 10 oz gold bar has some definite weight when held in the hand. Its value is worth 10 times the current spot price of gold, plus a slight premium. Like all precious metals that carry value, the 10 oz bar should be kept in a dry storage space that is safe and secure.
Where Can I Buy Gold Bars in All Sizes?
At Provident Metals, our gold bars come in all different shapes and sizes, proving that precious metals investing is both a wise and affordable option. We invite you to browse our wide selection of gold bars for sale and start investing in precious metals today!