SHOULD YOU BUY GOLD BARS?
“Physical gold is the starting point of any gold portfolio” – E.B. Tucker
Should you buy gold bars? If you have watched any spy movie such as the James Bond 007 films, you have more than likely seen those massive stacks of gold bars. That is an accurate description of 400 ounce gold bars, which with today’s gold prices would be roughly $700,000 per bar. So really… Should you buy gold bars? After knowing exactly how much one of those massive gold bars is worth, you may think that it is not the best option for you. But… Those gold bars are typically bought and sold by large corporations, countries, and other governments. They are used to store massive amounts of wealth and to repay great debts. These large gold bars are not typically owned by individuals.
What Size Of Gold Bar Should You Buy?
First we need to discuss how gold bars are measured. You may hear people discussing “ounces of gold”. It is extremely important that you understand that one ounce of gold is not the same as one ounce of beef. Gold is measured by Troy Ounces which is roughly 10% more than a standard ounce. This can be very important if you are purchasing physical gold. You don’t want to pay for one ounce of gold and only receive one standard ounce.
400 Ounce Gold Bars
Like mentioned above, these “Good Delivery Bars” are at the very top of the food chain. These gold bars are not meant for everyone and
they can be extremely impractical if you ever want to liquidate $100,000 or $200,000 quickly. In addition, not very many people have $700,000 readily available to throw into a single gold bar.
100 Ounce Gold Bars
In today’s market, one of these 100 ounce gold bars will set you back roughly $180,000. These bars are far more common than the 400 ounce bars. The wealthy who are looking to jump into the gold market find this as their bar of choice. It is one of the best ways to purchase large sums of gold. Should you buy gold bars and specifically these 100 ounce gold bars? If you have a larger sum of wealth and you are looking to insure it against inflation, then absolutely!
1 Kilogram Gold Bar
This is the starting point for your average investor. The wealthy looking to dip their toe into the gold market often start here. It is still a larger sum of gold but they don’t take up much space. They are about the size of a chocolate candy bar. They are easy to liquidate too!
10 Ounce Gold Bars
Currently $18,000 per bar, this is one of the most common entry points into the world of gold bars for most people. To those asking “Should you buy gold bars?” Still, the answer is yes.This is the perfect place to start with gold bar investing because of the low barrier of entry. You do not have to have a massive fortune to invest into 10 ounce gold bars and you don’t have to have some crazy underground vault to store them. You can slowly build up your stockpile of 10 ounce gold bars and build your wealth insurance steadily. They are extremely easy to liquidate and there are always buyers for bars this size.
*CAUTION*
As you should with all physical gold, you should use extra precautions when purchasing 10 ounce gold bars. Since this is the entry point into gold bars for most people, scammers will take advantage of the unaware and inexperienced buyers. Over 10 years ago, there were 10 ounce gold bars that were floating around with steel cores. The gold seemed to have a good weight but would be valued far less than a real 10 ounce bar. You must use caution when buying and most importantly, you should only purchase gold from a reputable source. Be weary of someone who is selling gold for a “good deal”. There is always someone willing to pay spot price for gold so nobody has any good reason to sell gold under spot price. This typically means the gold is fake or stolen. Use discernment!
1 Gram Gold Bars
Although you may not have enough money to invest into 10 ounce gold bars, 1 Gram gold bars typically are not worth time or money. There are fees with every gold transaction and when you make purchases this small, you begin to lose the value in purchasing gold. There may be other better ways to begin investing into gold such as the American Gold Eagle.
Should You Buy Gold Bars?
This is often the cheapest way to buy gold. There are fees per transaction so when you buy larger sums of gold in bar form, you avoid some of these extra fees. Although this is the most affordable way to buy gold, it is not the best option for everybody. Options such as the American Gold Eagle are great options for those with smaller budgets looking to get started. They are also very easy to liquidate when you need to cash out. Check out our article on American Gold Eagle One Ounce Coins for more information.
How Do You Get Started?
If you have questions on how to get started investing into gold or if you have more questions on “Should you buy gold bars?” then you can reach one of our Account Executives at 888-959-1776. Patriot Gold Supply has had the opportunity to serve the Patriots of the United States of America for over 30 years. We have shipped precious metals to every state in the nation and helped many veterans in the process. Every purchase you make with Patriot Gold Supply helps a veteran in need to receive food, shelter, and clothing. If you have more questions about how you can help others while hedging your wealth against inflation, then fill out the form at PatriotGoldSupply.com and we will be in touch with you shortly!
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