Now you can invest any amount in gold, from 1 gram to 10 large bars, at Buy Precious Metals. Get more information at a complete explanation in the cheapest, safest, and easiest way to buy gold.
Gold bars come in several shapes and sizes, and buying in bulk saves you money.
At the most expensive end from the gold bar price scale, one-gram “novelty” gold bars are minted for your gift market. Often coated in plastic, these tiny gold bars cost twice the need for their gold bullion content.
Cheapest of, 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 in the world’s 24-hour gold market.
It’s the live dealing over these 400-oz gold bars, along with the trade in Comex gold market-approved bars in New York City (100 oz), that creates the spot gold price you see quoted on the internet and within your newspaper.
There are other than 30 types of gold bar circulating in the world’s regional gold markets today. In value terms, the most heavily traded gold bars – using the largest ready market, open 24 / 7, five days weekly – are the Good Delivery gold bars bought and sold through dealers working in London.
Sixty-three active gold refineries, all closely monitored and approved by the Gold Dealers, make around 150,000 of the 400-ounce gold bars each year. That’s worth some $102 billion at current prices (Jan. ’13).
Inside the smaller, local gold markets of India, Singapore and the Middle East, probably the most widely traded gold bar may be 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 each year.
Typically the most popular gold bar in China may be the “five tael biscuit” bar (6 oz; 187g). Created in Hong Kong, five-tael gold bars are approved and identified by chinese people Gold & Silver Exchange, now functioning for almost a century.
Outside Asia, the most common gold bar sold to private investors for personal storage is the kilobar (1000g; 32.15 ounces). Over a million of the gold bars are produced each and every year, in most cases in Switzerland.
The best gold-bar refineries also make vast quantities of just one-ounce gold bars annually – and just like the kilobar, these gold bars are widely promoted like a cost-effective route to gold investment.
But these smaller gold bars, although they’re less expensive than gold coins, don’t come without significant drawbacks.
Buying gold bars is almost always less expensive than purchasing the same weight in gold coins – and also the bigger each bar, the lower the fee by weight.
According to your local tax regime, you can reduce or completely avoid paying sales tax (VAT) by buying gold bars as opposed to coins, too. Your savings will even depend upon the product quality (or “fineness”) of the gold bars you acquire.
Trading Good Delivery gold bars – bound to be of 99.5% fine or above – are able to cut your tax bill again in many countries, as these 100- and 400-ounce gold bars are defined as investment gold and entitled to personal retirement plans. Good Delivery gold bars lower your costs further still by retaining main market deliverable status. Based on your standpoint the removal of private possession and insurance arrangements is another plus.
Smaller gold bars for example 100g gold bars bought and stored in your house, alternatively – or perhaps stored in a bank safety deposit box – present three big drawbacks.
Specialist gold-bar storage programs – such as gold pool accounts and certificate schemes – offer to aid remove the irritation of taking physical possession. This will help reduce the premiums you pay to get gold and then sell on. However storage fees still run as much as 1.5% per year.
That’s an important charge for owning gold bars – a passive investment that pays you no interest. There is a much cheaper route, however, into buying gold and owning it outright.
To retain Good Delivery status, the large 400-ounce bars of gold traded by refineries, central banks, wholesalers, Buy Precious Metals must remain inside secure, recognized gold bullion vaults.
Take these gold bars away from market-approved storage – even to store on your bank – and they also break the chain of integrity that guarantees each bar’s gold to the next 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 people were dea1ers to purchase a huge 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 less than one gram at one time. Stored in market-approved gold bar facilities, your gold will retain its maximum resale value. Storage fees for owning a section of these big gold bars run only .12% a year, with insurance included. Estimate your commission and storage fees using our cost calculator.