Gold comes in several forms from an investment standpoint, and there are a number of formats by which to buy gold. One of those options is gold bars. Buying gold bars carries many benefits over buying gold in other forms, like coins or stock. But first, let’s list a number of different types of gold bars available to consumers:
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1,000 kilogram bars
400 ounce bars (popular with banks and professional gold dealers)
1 kilogram bars **
100 gram bars
50 gram bars
20 gram bars
10 gram bars
10 ounce bars
1 ounce bars (popular for individuals) **
There are other variations of gold bars, but these are some of the more common sizes. The smaller the size, the cheaper the price in most cases, making smaller bars easier to afford for everyday investors.
So, why buy gold bars over other gold investments, like gold coins or market investments? All types of gold investments come with their own set of benefits. For gold bars, one benefit is that you get the gold in actual physical form, and owning a gold bar is one of the easiest and most secure ways of owning physical gold. Having gold in physical form insures that even if the market crashes, or the economy experiences a downturn, you still have your gold, with its value intact.
Gold bars are also easy to trade, another benefit to owning them. The global gold supply is limited, and the amount of available gold is dwindling each year. If you own gold bars, you own a piece of that overall supply, and there will always be a market that is happy to buy it from you, if and when you decide to sell. On the other hand, some unique gold coins may not be as easy to sell. The fact that they are coins sometimes adds complexity to their value, whereas gold bars are just plain gold, pure and simple.
Gold bars also are usually closer connected to the actual price of gold than coins are. This means that when you buy a gold bar, your price is based on the weight of that bar, usually with a premium included in the cost. On the other hand, with a gold coin, the rarity and condition of the coin are also taken into account when pricing the coin, so the gold content alone is not the only factor in determining how much a gold coin costs you. Because of this difference, gold bars often have lower premiums than gold coins.
In short, gold bars are a good choice for investors for several reasons. However, all types of gold are advantageous to buy, and different people may wish to purchase different types of gold for a variety of reasons.