If you’re planning to make an investment in a gold product and want to take physical possession of the investment, buying gold bars for sale by various dealers is an excellent option.
Gold bars are essentially bars of gold manufactured by a recognized mint or foundry that are stamped or engraved with their caratage and weight. Gold bars can be purchased in many sizes and weights.
Gold bars are weighed in troy ounces. A troy ounce is one cubic inch of distilled water at a temperature of 62 degrees Fahrenheit and a barometric pressure of 30 mercury inches. The troy ounce is named for Troyes, France and was a commonly used system of measurement in medieval times. Troy ounces today are almost exclusively used as a unit of measure for precious metals and gems.
Gold purity is measured in carats. Gold is often alloyed with other metals to make it more rigid and durable, as gold alone is a very soft metal. 24 carats denotes gold purity of 99.9 percent, while 12 carats of gold indicates a purity of about 50 percent.
In general, there are two varieties of gold bars for sale. Ingots are bars manufactured by pouring gold into a mold while it’s in liquid form. Press bars are made in a manner similar to the manufacture of gold coins. Ingots are usually large bars, while press bars are smaller. The smaller bars tend to have a rougher surface than the ingots.
Gold bars are sold at a price above the underlying value of the gold metal. This extra price is called the premium. Smaller bars tend to have higher premiums than larger bars because they’re more difficult to make. If you buy a large quantity of bars the premium will be less.
When buying gold bars, you’ll need to decide whether you want to take physical possession of them or have them stored somewhere. If you store them in your home, you’ll likely want to make sure that your homeowner’s insurance policy covers them in the event of a robbery or disaster.
If you decide to store them in a bank or vault, you’ll need to factor in the cost of storage into your goals for your gold investment. Having gold shipped to you also carries a cost, and you’ll need to figure that into your calculations as well.
There’s a variety of places to buy gold bars, including online dealers, mints and auctions. Government-run mints may be your best option in many cases, as their premiums tend to be lower and their gold is backed by that government.
Gold bars are a good, simple investment because their value is tied directly to the value of the commodity. Investors are turning to gold as a sure investment in a time when many other investments once considered safe are turning out to be very volatile.
