You may now invest any amount in gold, from 1 gram to 10 large bars, at Precious metals service. Get more information at a complete explanation of the cheapest, safest, and most convenient way to buy gold.
Gold bars come in a number of styles and sizes, and buying in bulk saves you money.
At most expensive end from the 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 most, in comparison, will be the 400-ounce (12.4kg) “Good Delivery” gold bars held by central banks, and traded by professional bullion dealers inside london, center in 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 The Big Apple (100 oz), that creates the spot gold price the truth is quoted on the web and with your newspaper.
There are other than 30 varieties of gold bar circulating in the world’s regional gold markets today. In value terms, probably the most heavily traded gold bars – using the largest ready market, open 24 / 7, five days per week – would be the Good Delivery gold bars bought and sold through dealers operating in London.
Sixty-three active gold refineries, all closely monitored and licensed by the Gold Dealers, make around 150,000 of those 400-ounce gold bars annually. That’s worth some $102 billion at current prices (Jan. ’13).
From the smaller, local gold markets of India, Singapore as well as the Middle East, the most widely traded gold bar is definitely the “ten tola” bar. Rarely stamped having a serial number and weighing 3.75 oz (117g) each, two million of such “TT” gold bars are cast or minted every year.
The most famous gold bar in China may be the “five tael biscuit” bar (6 oz; 187g). Produced in Hong Kong, five-tael gold bars are approved and identified by chinese people Gold & Silver Exchange, now operational for pretty much a century.
Outside Asia, the most popular gold bar sold to private investors for personal storage may be the kilobar (1000g; 32.15 ounces). More than a million of the gold bars are produced every year, usually in Switzerland.
The best gold-bar refineries also make vast quantities of one-ounce gold bars annually – and just like the kilobar, these gold bars are widely promoted as a inexpensive path to gold investment.
However, these smaller gold bars, although they’re less expensive than gold coins, don’t come without significant drawbacks.
Buying gold bars is practically always less expensive than acquiring the same weight in gold coins – and the bigger each bar, the lower the price by weight.
Based on your nearby tax regime, it is possible to reduce or completely avoid paying sales tax (VAT) by buying gold bars as opposed to coins, too. Your savings will even depend upon the high quality (or “fineness”) in the gold bars you acquire.
Trading Good Delivery gold bars – bound to be of 99.5% fine or higher – are able to reduce your tax bill again in many countries, because these 100- and 400-ounce gold bars are defined as investment gold and qualified for personal retirement plans. Good Delivery gold bars reduce your costs further still by retaining main market deliverable status. Depending on your perspective the reduction of private possession and insurance arrangements is yet another plus.
Smaller gold bars such as 100g gold bars bought and stored in your own home, however – or perhaps stored in a bank safety deposit box – present three big drawbacks.
Specialist gold-bar storage programs – like gold pool accounts and certificate schemes – offer to help you reduce the irritation of taking physical possession. This will help reduce the premiums you spend to purchase gold then sell. However their storage fees still run as much as 1.5% each year.
That’s a substantial charge for owning gold bars – a passive investment that pays you no interest. There exists a less expensive route, however, into buying gold and owning it outright.
To retain Good Delivery status, the big 400-ounce bars of gold traded by refineries, central banks, wholesalers, Gold Dealers must remain inside secure, recognized gold bullion vaults.
Take these gold bars away from market-approved storage – even going to store at the bank – and so they break the chain of integrity that guarantees each bar’s gold to another buyer.
It’s the integrity of great Delivery gold bars that ensures maximum resale when you arrived at sell. But until recently, private investors couldn’t easily access this market unless these were dea1ers to get an entire 400-oz bar. Nor could they arrange market-approved storage unless they owned five big bars or maybe more.
At BullionVault, however, anyone can buy gold in amounts as little as one gram at one time. Kept in market-approved gold bar facilities, your gold will retain its maximum resale value. Storage fees for owning a percentage of these big gold bars run as low as .12% per year, with insurance included. Estimate your commission and storage fees using our cost calculator.