Newcomer’s Guide to the Lowest Price Gold Bar
The potential purchase of your first gold bar may give you the impression of going treasure hunting without a map. The majority of the individuals who seek their cheapest gold bar require a reliable piece, affordable, and one that can be resold easily. But is it so easy as to compare a couple of price tags? We will wipe away a bit of that mist. You do not need an MBA or even a microscope, a little know-how and the courage to equate apples and oranges.
The Gold Bar Size and the Division: Full Ouncers and Fractional Pieces
Have you happened to come across a stock photograph on the internet? Beefy 1-ounce gold bar with tiny, tiny little squares? Think big cheese wedge versus slices. These partial bars are commonly available in sizes such as 1/2 oz, 10 grams or even as small as 1 gram.
Here is the rub: The smaller the cut, the greater the premium. Gold refiners do not like to manufacture mini bars, and they will add a premium. As an example, 1-gram bars of gold can look affordable in a wallet. When you get to the register, you will see that the gram price will jump dramatically above that of an ounce of a large bar.
There is the lure on the upside of fractional bars: flexibility. Willing to sell on short notice, or need to stack up small bits by little bits? Smaller bars are helpful. Bear in mind, though, it comes at a premium.
The Price Tag Puzzle: Premiums, Dealers and Opaque Costs
The quoted spot price you look at on the ticker is not what you are going to pay for a gold bar. Dealers add on various premiums that include refining costs, shipping costs, branding (yep, branding) and profit. Other dealers are honest; some hide costs like your mother-in-law.
Always double-check:
Today spot price
The markup that the dealer puts over it
Shipping or insurance rates
Any amount of tax (VAT, assuming you are in the UK)
Some stores advertise a zero per cent commission fee, and then add on large shipping fees. Others will give you excellent prices on sizable orders, and that may come in handy when you are creating a pool with friends or family. Do not get taken around by those extras.
Refiners: Is a Larger Name Always Great?
PAMP Suisse, Metalor, Valcambi, and Umicore are recognisable refiners and mints, to some degree providing a cache/even cash-y premium. Why? Human beings are aware of them. Big brands are the order of the day for some gold dealers. However, lesser-known smaller refiners are in a position to offer the same pure gold at a reduced cost.
First of all, use LBMA-approved refiners. This stamp implies that their gold is reliable and of trade standard. However, outside of the big four or five, you can crash into the less hyped brands with similar purity. These non-hyped refiners may not be offering dazzling packaging, still their bars glitter.
The scale of the logos is sometimes not as important as consuming a portion of the money you wanted to spend on it, just to build your investment. But not right into the bottom rung, circle the wagons; paranoid, cheap, normally equals rip off risk.
The Comparison of Different Dealers Online, High Street or Peer-to-Peer?
Head to Google and search buy gold bar and you will see there are dozens of dealers. Others are chic online retailers, some have high-street stores, and some conduct peer-to-peer trading. Both styles are disadvantaged and advantageous.
High street stores: Immos then and there, detection with intensity, but usually highest prices.
Internet dealers: Cheaper shops, but selection is better, and you ship.
Peer-to-peer: The possibility of achieving a cut price, but it requires research and trust in the seller.
Preferably, go with a less well-known dealer and read customer testimonials, or search to see if they are a member of a group such as the British Numismatic Trade Association (BNTA). Transparency and questions do not bother a respectable brand. And when they start squirrelling, move your business and get out.
The Argument in Favour of the 1-Ounce Gold Bar-And why the Fractional Should Win
The usual question, among the gold beginners, is, Are you going to save up a whole ounce, or are you going to purchase the fractions as you can afford them? The inside story is this:
The lowest premium charge per gram is nearly always only available with 1-ounce bars. However, you will get your pound sterling worth more in gold, in case you may be able to cope with the initial price.
Fractional bars are practical when operating on a small budget, or you just need to see how it goes. Yes, it costs you more per gram, but you end up diversifying your risk, and you do not have to cough up a large amount at once.
Anecdote time: A friend of mine purchased a chain of 5-gram bars in more than a year. All told, he managed to spend about 10 per cent more than I did in purchasing a single ounce at a time. However, when his boiler blew, he did not sell all, but he took a small bar of gold to redeem. A little bit extra can be flexibility.
The Gold Purity and Hallmarks: What Should You See
Genuine gold bars are usually in the form of 24 karat (99.99% pure) fineness, engraved on the bars. The bar ought to have had:
Weight and cleanliness mark
Serial number
Refiner’s hallmark
Not a fancy box, but a certificate and matching serial number will be given by a legit dealer. Comparing hallmarks is not a crime. There are situations where a generic brand could be associated with money savings, but only when documented properly.
Telling it where to commence the search.
The purchase of gold by beginners is the specialisation of websites such as 1ozgoldbritannia.co.uk. They provide a variety of refiners, convenient comparison of prices, and delivery to the doorstep. Read their specials. Look at the premiums of spot prices. In case of hosting educational content, use it to eliminate rookie mistakes.
Golden rule, pun intended, never pull the trigger unless you have compared at least three sources. Prices change fast, and these five minutes may have just got you a nice dinner out (or additional gold grams!).
