If you are looking for a good investment, especially in physical gold, with the lowest price per ounce as possible, there is no better choice than to invest in bars. Gold coinages can be attractive, but all that packaging and manufacturing comes with a price. On the other hand, bricks are the dependable “child” of the industry.
A lot of people from small investors to central banks are buying and storing it. In other words, investing in bricks can’t go wrong, provided that you will follow some tome tips including what and where to buy it. In this article, we will cover:
How to invest?
Where is the place to buy it?
What kind of bars to buy?
Gold is not used as a real currency today, but its role in the economy makes it very superior to any currency in the world. It has been an official currency longer than any paper money in history. One major promise, money can offer is, it serves as long-term value storage. But it can fulfil this promise better than any physical currency all over the world.
(If you want to know how gold impacts the economy, click here.)
If you buy gold, you can hold it in your hand as long as you want, something you cannot do if you are investing in something like stock bonds. Real gold cannot be destroyed by water, fire, or even time. It is highly liquid, tangible and infinite. It can be converted to cash quickly, and it can go with you anywhere you want. It is also one of the ideal ways to preserve your wealth. It is also a good heirloom since it can outlast any fiat currency your future heirs may use shortly.
The advantage of owning gold bars
The main reason a lot of investors choose bricks is that it is less expensive compared to gold coins. You will pay lower premiums since they have less intricate designs than gold coinages, thus less machine and labor costs. Gold coinages may be a lot prettier than bricks, but you will pay extra for the design.
Another advantage of a bar is that they are easier to store. They take up less space compared to coins with the same weight. The bars are made initially to save storage space. Buying bars does not compromise the core advantage of investing in gold: they are private, liquid, portable, and it will last forever.
Picking the best bar size that will suit you
The first thing you need to do when you want to invest is to decide what size of bar you need to buy. Bullions or gold bars for sale, come in different weights and sizes. They can be as small as a grain of rice, or as big as a brick. These brick-sized bars are the one central bank, ETF’s and exchanges buy.
The bigger the bar, the smaller the premium you will pay because it is less costly to produce and maintain a kilo of the bar than one or two ounces. But that does not mean that you should buy the biggest and the most massive bar you find (and afford). It’s the opposite.
Big bricks don’t offer the divisibility that smaller bricks do. When you sell big bars, you will be liquidating sizable investments. It is more practical to sell a couple of small bars. Sell the exact amount of bricks for the same amount of currency that you need.
You also can’t find a lot of people willing to buy big bars or bricks. There are only a few investors that can afford to purchase bricks 100 ounces and higher. If you owned smaller sized bricks, there might be a lot of possible customers willing to buy them. There is also the risk of counterfeiting.
Small-sized bars are less prone to counterfeiting compared to big once since counterfeiters prefer bigger once because of their worth a lot more. The only advantage of owning and buying a big bar is that it has a lower premium compared to their smaller counterpart. But this advantage will be lost once you buy the biggest bar you can find. Investors with money can afford big bullions, provided that they also have the bulk of smaller-sized bars.