Here’s everything you need to know about what type of gold bar to buy in 2022. You’ll learn when to choose gold bars over gold coins, what size gold bar to buy and a whole lot more…
Table of Contents
Here’s How to Choose What Type of Gold Bar to Buy
Why Buy Gold Bars?
What Size Gold Bar Should I Buy?
Pros and Cons of Different Bar Sizes
1kg Gold Bar Advantage: 1kg Bars Can be Borrowed Against
What is the Most Common Gold Bar Size That is Bought?
Other Factors to Consider When Buying Gold Ingots and Bars
Different Brands of Gold Bars
No GST on Gold Over 99.5% Pure
Cast Bars vs Minted Bars
What is a Gold Cast Bar?
What is a Gold Minted Bar?
Pros and Cons of Cast and Minted Bars
Gold Bars Stand the Test of Time
Here’s How to Choose What Type of Gold Bar to Buy
So you’ve considered the many reasons why you should buy gold and have made a decision to buy. You’ve also determined what percentage of precious metals you should own.
Now the question is what type of gold to buy? First up, you’ll most likely want to consider whether to buy gold bars or buy gold coins.
Why Buy Gold Bars?
The main reason to buy gold bars is because they are cheaper than gold coins. Gold coins require more “work” to produce them. They have the added work of designing both a front and back (or obverse and reverse) of the coin. But also the minting and machining process for a coin is far more involved than for a bar.
For more detail on the coins vs bars debate see: NZ Gold Coins or NZ Gold Bars: Which Should I Buy?
But if your primary concern is simply to get the most gold for your money, then gold bars are probably the way to go.
What Size Gold Bar Should I Buy?
The next question to answer is what size gold bar to buy? Gold bars come in a plethora of sizes, from 1 gram to 400 ounces.
The general rule of thumb is, the bigger the bar the lower the premium over spot price per ounce. i.e. a bigger bar is a cheaper bar.
Well, it’s comparable to how a coin requires more “work” to produce than a bar. In much the same way, a larger bar requires about the same amount of work to pour or cast as a smaller bar.
So the net cost of fabricating the bars is quite similar. But a larger bar obviously has much more gold in it.
Therefore the overall cost per ounce of a much larger bar (such as a 1 kilogram bar) is lower than say a 1 ounce gold bar.
However like many things in life cheaper is not always the best option. More on that below…
Pros and Cons of Different Bar Sizes
400 ounce gold bars and 1kg gold bars offer the best value. That is you’ll get more ounces of gold for the same amount of money. That is why the likes of large institutional investors, central banks and exchange traded funds deal in 400 ounce bars. Exchanges in China more commonly deal in the kilo bar.
But there are disadvantages to buying larger bars. These include:
Divisibility – a 1 kilogram gold bar cannot be sliced up into smaller parcels and sold when the need arises.
Counterfeiting -Although counterfeiting of gold is not common, larger bars are a more likely target for counterfeiters. Why? Because there is a less chance of counterfeiting occurring in smaller 1 ounce bars, as it is not worth the time and effort. (The other main way to avoid counterfeits is to deal with a long standing gold dealer who sources direct from precious metals refiners and mints).
Ease of resale – There are more potential buyers of smaller bars. Not many people can afford a 400oz gold bar, so when the time comes to sell you will have a smaller pool of interested buyers.
1kg Gold Bar Advantage: 1kg Bars Can be Borrowed Against
While we view gold as financial insurance with no counter-party risk, there are times when some people would like to be able to borrow against their gold.
Say you wanted to purchase a property, but didn’t want to sell the gold you had in order to do this. You may therefore choose to borrow against your gold.
This borrowing is only available against 1kg gold bars. The minimum is 3 kilos of gold. Go here for more information about storage at SGPMX and to request more information about borrowing against gold.
What is the Most Common Gold Bar Size That is Bought?
By far the most common size gold bar we sell is the 1 oz gold bar. Why?
Most likely because the 1 ounce gold bar is the best combination of lower premium above spot price, and resale-ability. A 1oz bar is not too high a value. So if buying a number of ounces of gold you can sell them later in tranches.
(Tip: If you want even greater divisibility then consider buying silver coins.)
Other Factors to Consider When Buying Gold Ingots and Bars
Different Brands of Gold Bars
There is a vast range of brands available when buying different types of gold bars. These include local New Zealand refined gold brands and overseas brands.
Overseas refiners include:
PAMP
Argor-Heraeus
Johnson Matthey
Metalor
Overseas options also include sovereign mints such as:
Perth Mint
Royal Canadian Mint
US Mint
Again there are pros and cons to buying locally refined New Zealand made gold bars and imported/overseas made gold bars. This article covers these advantages and disadvantages in detail: PAMP Suisse Gold / Silver vs Local NZ Gold / Silver: Which should I buy?
Regardless of what gold bar you buy, there are a few things you should expect to see on it.
The refiners hallmark should be cast or stamped into the gold bar. Also clearly visible should be the purity of the bar. Generally this will be 9999 purity or 99.99% pure. Some larger bars (1 kilogram and 400 ounce) may only be 999 pure. Finally the weight in either grams, ounces, or kilograms.
Some brands and sizes may also be cast or minted with a unique serial number. Some may also ship with certification. Generally you will also pay more for these types of bars.
No GST on Gold Over 99.5% Pure
This point is generally not of concern when buying different types of gold bars as almost all are 999 or 9999 pure. However some coins such as the South African Krugerrand and American Eagle 1oz gold coins are only 22 carat or 91.67 pure. These 22 carat gold coins therefore attract GST in New Zealand and so are not a great buy here.
Cast Bars vs Minted Bars
What is a Gold Cast Bar?
A cast bar simply means the gold has been melted and then poured into a cast or mould. This cast will have the refiners hallmark stamped into it along with the weight and purity.
A cast bar may also be referred to as a moulded bar, poured bar or a gold ingot. The word ingot and bar are often used interchangeably. See: 1oz Gold Cast Bar
What is a Gold Minted Bar?
Whereas a minted bar is produced in a similar way to a coin. There are multiple steps involved. There is still a casting process to produce a bar of a certain size. But then the bar is fabricated via a striking process. A machine strikes the bar – effectively stamping it with a design much like a coin is. See: 1oz Gold Minted Bar
Pros and Cons of Cast and Minted Bars
Cast bars are cheaper to produce, therefore are cheaper to buy. They can also have some variation between bars due to the casting process. However this comes down to personal preference. Some people prefer the individuality of a cast bar, while others prefer the exactness of a minted bar.
Minted bars have more detail in their design. The minting process is of course what gives the minted bar a higher price compared to a cast bar. While you may pay more for a minted bar there is also no guarantee you will get more for it when you sell it, compared to a cast bar.Minted bars usually come in packaging, so if you’d like to handle your gold bar, a cast bar may be a better option.
For more on minted bars and gold coins see: Why is a 1oz PAMP Gold Lady Fortuna Minted Bar Worth Less Than a Canadian Gold Maple Coin?
Gold Bars Stand the Test of Time
Gold bars are a popular way to protect purchasing power and guard against financial crises. They are an asset that has stood the test of time for millennia.
Check out the different types of gold bars to buy. Or let us know if you’d like something not listed there. You can also use the live chat feature to get the most up to date pricing – see the button at the bottom right of your screen.
Related:What is the Best Type of Gold to Buy For Trading in a Currency Collapse?
Editors Note: Originally posted 24 April 2018. Last updated 27 April 2022.
400 ounce gold bars and 1kg gold bars offer the best value. That is you'll get more ounces of gold for the same amount of money. That is why the likes of large institutional investors, central banks and exchange traded funds deal in 400 ounce bars. Exchanges in China more commonly deal in the kilo bar.
Smaller gold bars such as the 50g and 20g also combine convenient size with reasonably low premium. For larger investors, 1kg bar are the best way to get the most out of their budget.
Purity is very important when buying gold: Investment-quality gold bars must be at least 99.5% pure gold. This is especially critical if you're hoping to store bars in a gold IRA; less pure gold, unless it's a specifically pre-approved gold coin, cannot be held in an IRA.
The Difference Between Valcambi and PAMP Gold Bars
The major differences between Valcambi and PAMP gold bars (1 ounce) are: 1 Ounce Valcambi gold bars are slightly thicker. In contrast, PAMP Suisse's gold bars are slightly wider and taller than the former. Irrespective of this, they both weigh 31.105 Grams / 1.000 Oz.
Gold coins will command slightly higher premiums over the spot price than gold bars, due to the extra minting costs, and the commemorative nature of their value. Gold bars should be priced very closely to the gold spot price, with just a small additional margin from the mint and merchant.
The 1 Troy oz gold bar is the most common size traded around the world. Even countries that use the metric system still produce bars (and coins) in the 1 Troy oz size, since it is so popular. Here in America, we normally convert weights using pounds. 14.58 troy ounces (oz t) in gold is equal to one pound.
People who purchase gold bullion as an investment should only buy a bar that features the name of its manufacturer, its weight, and its purity, usually expressed as 99.99% stamped on its face. Popular mints that produce gold bars include the Royal Canadian Mint, Perth Mint, and Valcambi.
One rule of thumb is to limit gold to no more than 5% to 10% of your portfolio. Depending on your situation and your risk tolerance, you might be more comfortable with a bigger or smaller share of gold in your portfolio.
Pure investment gold bars should be stamped with their weight, purity, refiner and registration number. The easiest way to ensure you're buying a top-quality pure gold bar is to choose a brand (or hallmark) that is widely recognised. These are some of the best and most trusted brands: The Royal Mint.
When you think about investing in gold, don't restrict yourself to just buying physical gold, like coins or bullion. Alternatives to invest in gold include buying shares of gold mining companies or gold exchange-traded funds (ETFs). You can also invest in gold by trading options and futures contracts.
Gold bullion is the most popular type of gold to hold as an investment or store of value, as it's generally easy to sell, and maintains its value well.
It's important that you know how to make sure your gold is real. Stamping: a reputable gold bar should have its weight, purity, refiner, and a registration number stamped on it. It's important to buy gold bars with these markings.
Buying gold bullion is considered to be a unique and wise investment in the precious metals market. PAMP gold bars are considered to have intrinsic value because there will always be a gold market, so it is comparable to a safe haven.
Using the millesimal fineness scale, 999.999 is the purest gold ever made. This was produced by the Perth Mint in 1957. Commonly referred to as six nines fine, it has since been used by The Royal Mint and around the world as the ultimate yardstick for gold purity.
Yes.Your bars may diminish in value if you remove them from the blister pack. If the bar is unpacked when it is bought, it is important to ensure that the certificate is not lost and the bar is not damaged. Coins are often sold in so-called coin capsules, which serve as protection against corrosion.
Which is Better: Gold Coins or Gold Bars? Although coins are easy to store and trade, gold bars can be deal options as long-term investments. Again, gold coins are flexible and easy to buy and sell than gold bars.
Mutual funds and ETFs are generally the easiest and safest ways to invest in gold. Each share of these securities represents a fixed amount of gold, and you can easily buy or sell these funds in your brokerage account or retirement account.
A 1-ounce gold bar is worth more than $1,800 as of June 9, 2022. Keep in mind that gold prices typically fluctuate on a daily basis, though the average price has been going up for decades. The price of 1-ounce gold bars surpassed $2,000 in both 2020 and 2022.
With an impeccable reputation for producing premium gold bars, Valcambi Suisse products are recognized by the LBMA and COMEX as “Good Delivery”, otherwise called certified investment grade. These bars are perfect for personal and commercial storage, as well as the Precious Metals IRA.
Throughout history, gold has been seen as a special and valuable commodity. Today, owning gold can act as a hedge against inflation and deflation alike, as well as a good portfolio diversifier. As a global store of value, gold can also provide financial cover during geopolitical and macroeconomic uncertainty.
Gold bullion products from PAMP Suisse are high in demand. PAMP Suisse has the most expensive gold bullion products on the market, as they have a reputation for purity and the highest quality. So, for this reason, PAMP gold bars are frequently used for investment purposes by investors.
Gold is often considered a good investment for diversification, as it may be less correlated with other assets such as stocks or bonds. This means that the price of gold may be less affected by movements in other asset classes, which can help to reduce overall portfolio risk.
Gold should be stored in an area that is protected against high humidity and fluctuating temperatures. A lock-enabled jewelry box or a safe are both great investments for storing and protecting jewelry and other small gold valuables. Safety deposit boxes are also a popular option for storing metals like gold.
The answer is that there is no limit on how much gold you can purchase without reporting it. However, any sale of precious metals, including gold coins, must be reported on your tax return. So, while there is no limit on how much gold you can purchase, you will still need to report any sales to the IRS.
Even those that have similar weight and size may not necessarily have the same value. Also, worth noting is that the price of gold bars keeps changing each day that markets are open in accordance with the gold spot price.
You can purchase gold bullion in a number of ways: through an online dealer such as APMEX or JM Bullion, or even a local dealer or collector. A pawn shop may also sell gold. Note gold's spot price – the price per ounce right now in the market – as you're buying, so that you can make a fair deal.
The real estate can be an attractive long-term investment option where the property value increases over time. Real estate provides better returns than gold without much volatility. Additionally, when the market improves, so does the value of your property.
Is gold difficult to sell? Not at all! It's simply a matter of finding a gold bullion dealer with a good reputation. If you bought your gold from a professional dealer in the first place, you should always be able to sell your gold back to them.
While gold encompasses all forms of the metal and ways to trade in its market, including coins and bars, bullion includes the physical forms of other precious metals also traded, like silver and platinum.
The types of gold used most commonly for jewelry are 18K gold, comprised of 75% gold, and 14K gold, which contains 58.3% gold. Gold with a very low percentage of actual gold, such as 10K gold (41.7% gold), is also used for jewelry.
The simple answer is that 24-karat gold is the only type of gold that doesn't tarnish. This is the most traditional form of gold, and it is what primarily comes to people's minds when they think of "gold." 24-karat gold is also the priciest type because it does not contain any other mixed metals.
Of all the types of gold jewelry, solid gold is hands down the best option. It is highly valuable and will retain its value for many, many years. The color won't fade because the gold is in the metal itself, not just a coating. Plus, it won't tarnish.
Under this, 999 means that your 24K gold is 99.90% pure and other metal constitutes only 0.1%. Similarly, 999.9 means your gold is 99.99% pure, which means only 0.01% is other metal. Before buying, it is always better to ask your jeweller, bank, or digital platform about the purity of gold.
Not only is the PAMP Suisse minted ingot a great investment, but it is also a collector's item. Its unique design and high-quality packaging make it a must-have for collectors of gold bullion.
The entire collection is produced by MKS PAMP Switzerland, one of the most recognized gold refineries in the world. All products are LMBA certified. Gold bars are excellent products for investors who want to buy gold, it allows them to get 99.99% pure gold at the lowest market price.
Due to various transaction related costs including taxes, bank charges for processing your payment, technology costs and hedging costs since the market prices may fluctuate between customer placing order and MMTC-PAMP buying the gold.
Investment grade gold is pure solid gold with the highest purity of 99.99%. This is what is also known as gold bullion and comes in the form of gold bars or gold coins.
The standard gold bar held and traded internationally by central banks and bullion dealers is the Good Delivery bar with a 400 ozt (12.4 kg; 438.9 oz) nominal weight.
When the stock market crashed in 1929, the well-to-do rushed to convert their bank funds to more reliable gold bullion. This left the government without enough gold to back newly printed money. Therefore, President Franklin Roosevelt used his executive powers to make it illegal to own gold coins or bars.
Pure gold is notated as 24K – this is the highest karat level for gold meaning it is 100% pure gold. 18K gold is 75% purity level, 14K is 58.3% purity level, and 10K is 41.7% purity level.
Throughout history, gold has been seen as a special and valuable commodity. Today, owning gold can act as a hedge against inflation and deflation alike, as well as a good portfolio diversifier. As a global store of value, gold can also provide financial cover during geopolitical and macroeconomic uncertainty.
The simple answer is that 24-karat gold is the only type of gold that doesn't tarnish. This is the most traditional form of gold, and it is what primarily comes to people's minds when they think of "gold." 24-karat gold is also the priciest type because it does not contain any other mixed metals.
Gold bars are priced by weight, typically ounces or grams, and this price is also affected by the market. As of Feb. 23, 2023, the price of 1 gram of gold is $58.62 whereas a gold bar that weighs a kilogram would fetch close to $60,000.
Pure investment gold bars should be stamped with their weight, purity, refiner and registration number. The easiest way to ensure you're buying a top-quality pure gold bar is to choose a brand (or hallmark) that is widely recognised. These are some of the best and most trusted brands: The Royal Mint.
Introduction: My name is Wyatt Volkman LLD, I am a handsome, rich, comfortable, lively, zealous, graceful, gifted person who loves writing and wants to share my knowledge and understanding with you.
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