Everything You Need To Know About Buying Gold Bars

Everything You Need To Know About Buying Gold Bars

Gold bullion can be a sound choice for diversifying their portfolio. Gold bars are easy to buy and store and can be sold quickly when needed. But before you buy, you should know a few essential things about the process. Here are seven key points to consider when buying gold bars.

Types of Gold Bars

When buying gold bars, it’s essential to understand the available types. The two most common types are cast and minted bars.

  • Cast bars are created by pouring molten gold into a bar-shaped mold and allowing it to cool and solidify.
  • Minted bars, conversely, are made by taking an already-cast bar and running it through a machine that stamps out the desired size or shape of the bar.

Weight                                                          

The weight of gold bars is measured in troy ounces. One troy ounce is equivalent to 31 grams, slightly heavier than a standard ounce of 28 grams. When buying gold bars, you’ll need to consider what size or weight makes sense for your investment needs. Larger bars will cost less per troy ounce than smaller ones due to production costs associated with crafting smaller sizes.                            

Purity/Fineness                                                   

Another factor to consider when purchasing gold bullion is purity or fineness. This is expressed as parts per thousand (ppt), with 24 karats being the purest form at 999 ppt (99.9%). Anything lower than 24 karats is considered alloyed gold, meaning other metals have been added for durability; however, this will also reduce the bar’s value compared with purer options like 24K or 22K (92% pure).

Costs and Fees Associated With Buying Gold Bars      

It’s also essential to understand any fees associated with buying gold bars, such as shipping/handling costs or credit card processing fees. Additionally, some dealers may charge premiums on top of the spot price for certain products, such as collector coins or specialty items, so make sure you’re aware of these charges before making your purchase decision.

Storage Considerations                                                            

Storage considerations are essential when purchasing gold bars. If you plan on storing them yourself, ensure a secure storage space that won’t be vulnerable to theft or damage due to fire or flood, etc. Additionally, if storing in a bank’s safe deposit box, ask about potential restrictions regarding access times, etc.

Alternatively, investigate third-party storage services that provide professional security and insurance coverage against losing or stealing your precious metal assets if you prefer not having physical possession.

Authenticity                                                               

Finally, you must verify the authenticity of any gold bar before purchasing it, especially when dealing with online vendors who may not provide the same level of assurance as brick-and-mortar stores do. Make sure all documentation accompanying your purchase matches what’s printed on the bar itself, including weight and purity information, before completing payment so everything will be predictable.

Buying Gold Bullion – In Conclusion

Gold bullion can diversify your portfolio while protecting against inflationary pressures in global markets. When done correctly and mindfully, investing in gold can yield significant returns over time; however, some critical considerations before making any purchases, including types and weights available; purity and fineness; costs and fees associated; storage requirements; and verifying authenticity. By keeping these factors in mind, investors can ensure they’re getting maximum value from their investments while avoiding potential pitfalls.

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About the Author: Amanda Byers

Amanda Byers is a graduate of Columbia, where she played volleyball and annoyed a lot of professors. Now as Zobuz’s entertainment and Lifestyle Editor, she enjoys writing about delicious BBQ, outrageous style trends and all things Buzz worthy.