It is important to consider the spot price and the premium when purchasing gold bars. Generally, it is a good idea to invest in bars that carry a lower premium. Gold bars carry a lower premium than most gold coins, in particular 1 Ounce gold bars and larger sized bars. Gold coins are also an attractive investment option, however we will cover the benefits of buying gold bars in this article.
Although gold is not currently used as a physical currency for any major government, its role as a 'money' or financial medium is still very relevant, especially during turbulent markets. Gold does not depreciate in the way that fiat currencies do, and in that sense the precious metal is a much better store of value in the long term than paper currency. Gold has been acted as 'cash' in various societies for several thousand years. Gold is easily able to act as a 'medium of exchange' and also a 'store of value', making it a very significant alternative to government issued paper currencies.
One of the major benefits to gold is that its value is so transparent. Gold has a fair market value that fluctuates against fiat currencies, however its value is always know. Because of this, gold can easily be converted back and forth between cash and other monetary instruments.
Holding some of your portfolio in gold is also a good idea - gold holds its purchasing power. They say that a gold sovereign 100 years ago could buy a nice suit. That same coin can still buy a nice suit today. However, if you held the cash equivalent to that value from 100 years ago, today you would only have pennies.
The Benefits of Purchasing Gold Bars
1. Gold Bars Carry a Low Premium
Gold bars carry a lower premium on average than gold coins, silver, platinum or palladium. This makes them an attractive investment opportunity, as there is a smaller commission that needs to be paid on these products. The lower premiums are due to their relatively simple design and the packaging. By comparison, some coins have significantly more complicated designs and require a higher quality or 'proof' when minting, which increases their costs.
2. Gold Bars are Relatively Small
Gold bars are relatively easy to store, especially when compare to silver bars. They take up very little space. For clients who do not feel comfortable storing their gold bars themselves, Suisse Gold offers Zurich based vault storage facilities, which are free of charge for up to one year.
3. Gold Bars are Available in a Range of Sizes
Clients can buy gold bars in sizes ranging from 1 gram up to 1 kilogram. Larger sizes are also available, however they are normally purchased by institutional investors. The smaller sized bars carry a higher premium, but the larger sizes may be more difficult to sell. Because of this, Suisse Gold recommends that clients consider 1 Ounce gold bars. 1 Ounce gold bars carry a relatively low premium compared to the smaller sized bars. They are also easily divisible, which means that they can be sold off incrementally if they need to be converted to fiat currency or used. Additionally, buying or selling a number of items over a period of time allows the investor to minimize exposure to intraday fluctionations, and achieve a more stable price overall. One ounce gold bars are also significantly more difficult to counterfeit.
What to Look For in a Gold Bar
One major consideration in purchasing gold bars is the brand. Is it a reliable brand? Suisse Gold only sell gold bars that are manufactured from the major Swiss refineries or by government mints. Bars manufactured by these two are recognised worldwide, are liquid, and are high quality.
All gold bars that are sold to our clients have a stamp which verifies the refinery at which they have been manufactured.
Additionally, most gold bars also come with a serial number, and most one ounce gold bars are sold sealed in their own certicard, which validates their authenticity.
Gold bars are available as either 99.9% fine or as 99.99% fine. The premium is slightly higher for a 99.99% fine gold bar, however both are considered equally good investments. The actual difference in gold content between the two items is very small.
If you are interested in purchasing gold bars, please look at the range of gold bars available from SwissBullion.ch.
All of Suisse Gold's products are available for delivery worldwide or for Swiss storage.
