Should You Buy Gold Bars or Coins?
We want to use this opportunity to speak with you about the purchasing of gold bars, and the importance of having gold in your portfolio.
So, why buy bars of gold? Frankly, gold bars are probably one of the best purchases you can make today. Gold has held its value over many years. One ounce of gold can still purchase exactly the same goods and services as you could 20, and even 50, years ago. The same cannot be said for currency which has fluctuated wildly over the years and is subject to inflation, deflation, and myriad of other influences. So, the short answer is yes! Investing in gold bars is a smart choice.
How do you buy gold bars safely?
Gold bars come in all shapes and sizes - from very small wafer thin 1 gram 'biscuits' to the heavy 400 ounce ingots, those favored in Hollywood movies. The larger bars are called ingots and are made by pouring molten gold into moulds. This process is called casting. The smaller bars are made by pressing gold with a multi-tonne stamp, much in the same way gold coins are made, and these are usually called biscuits.
All bars of gold should have stamped on them the weight, the size, and the manufacturers stamp. Also, a registration number that corresponds with a certificate should also accompany every bar.
The advantage with the smaller bars is convenience. They are easier to buy and sell due to the lower cost involved. They are easier to store and transport. The disadvantage is the price. They carry a higher premium over the value of the gold due to the costs involved in the manufacturing process - more man hours means more margin.
The advantage with the larger bars or ingots is that the premium is much lower - usually a fraction above the spot price of gold for the day. The disadvantage is that they are more difficult to move around and store due to their weight and can me more difficult to sell as there will be much more money involved in the transaction. Most of the larger ingots are stored in bank vaults around the world.
Safely buying bars of gold is largely dependent on the place of purchase. Who are you buying the gold bars from? Are they reputable? Have you checked their reviews? Have you inquired about service after the sale? We encourage you to check all of this as it relates to GMRgold.com. You will see there is a reason GMRgold.com is one of the fastest growing precious metals firms on the planet.
In any event, buying gold bars can be a lot of fun and there is nothing quite so wonderful as holding a bar of gold in your hand.