You can now invest any amount in gold, from 1 gram to 10 large bars, at Buy Precious Metals. Get more information at a complete explanation from the cheapest, safest, and simplest way to acquire gold.
Gold bars come in several shapes and sizes, and purchasing in bulk will save you money.
At the most expensive end of your gold bar price scale, one-gram “novelty” gold bars are minted for the gift market. Often coated in plastic, these tiny gold bars cost at least two times value of their gold bullion content.
Cheapest of all the, in comparison, are definitely the 400-ounce (12.4kg) “Good Delivery” gold bars held by central banks, and traded by professional bullion dealers in the uk, center of the world’s 24-hour gold market.
It’s the live dealing within these 400-oz gold bars, in addition to the trade in Comex gold market-approved bars in New York (100 oz), that produces the spot gold price the truth is quoted online and inside your newspaper.
There are more than 30 types of gold bar circulating from the world’s regional gold markets today. In value terms, one of the most heavily traded gold bars – with the largest ready market, open 24 / 7, five days weekly – are definitely the Good Delivery gold bars bought and sold through dealers doing work in London.
Sixty-three active gold refineries, all closely monitored and licensed by the Buy Silver Bullion, make around 150,000 of these 400-ounce gold bars every year. That’s worth some $102 billion at current prices (Jan. ’13).
Inside the smaller, local gold markets of India, Singapore as well as the Middle East, one of the most widely traded gold bar will be the “ten tola” bar. Rarely stamped using a serial number and weighing 3.75 oz (117g) each, two million of those “TT” gold bars are cast or minted every year.
The most famous gold bar in China will be the “five tael biscuit” bar (6 oz; 187g). Manufactured in Hong Kong, five-tael gold bars are approved and recognized by chinese people Gold & Silver Exchange, now operational for almost a hundred years.
Outside Asia, the most famous gold bar sold to private investors for private storage will be the kilobar (1000g; 32.15 ounces). More than a million of the gold bars are created each year, in most cases in Switzerland.
The leading gold-bar refineries also make vast quantities of one-ounce gold bars annually – and much like the kilobar, these gold bars are widely promoted being a inexpensive way to gold investment.
Nevertheless these smaller gold bars, although they’re cheaper than gold coins, don’t come without significant drawbacks.
Buying gold bars is almost always less expensive than acquiring the same weight in gold coins – along with the bigger each bar, the less the price by weight.
Depending on the local tax regime, you are able to reduce or completely avoid paying sales tax (VAT) by buying gold bars instead of coins, too. Your savings may also depend upon the high quality (or “fineness”) in the gold bars you purchase.
Trading Good Delivery gold bars – sure to be of 99.5% fine or higher – may then reduce your tax bill again in several countries, because these 100- and 400-ounce gold bars are considered investment gold and entitled to personal retirement plans. Good Delivery gold bars reduce your costs further still by retaining main market deliverable status. Depending on your point of view the removal of private possession and insurance arrangements can be another plus.
Smaller gold bars for example 100g gold bars bought and stored in your house, on the flip side – or perhaps saved in a bank safety deposit box – present three big drawbacks.
Specialist gold-bar storage programs – for example gold pool accounts and certificate schemes – offer to assist cut out the hassle of taking physical possession. This will help decrease the premiums you have to pay to buy gold then sell. But their storage fees still run around 1.5% each year.
That’s an important charge for owning gold bars – a passive investment that pays you no interest. There exists a much cheaper route, however, into buying gold and owning it outright.
To retain Good Delivery status, the important 400-ounce bars of gold traded by refineries, central banks, wholesalers, Buy Silver Bullion must remain inside secure, recognized gold bullion vaults.
Take these gold bars out from market-approved storage – even going to store at your bank – and they break the chain of integrity that guarantees each bar’s gold to another buyer.
It’s the integrity of Good Delivery gold bars that ensures maximum resale when you go to sell. But until recently, private investors couldn’t easily access this market unless these folks were dea1ers to acquire a complete 400-oz bar. Nor could they arrange market-approved storage unless they owned five big bars or higher.
At BullionVault, however, anyone can buy gold in amounts as little as one gram at the same time. Held in market-approved gold bar facilities, your gold will retain its maximum resale value. Storage fees for possessing a percentage of these big gold bars run only .12% annually, with insurance included. Estimate your commission and storage fees using our cost calculator.