Industry Overview About The Gold Industry
Gold price per ounce has seen massive growth over the past few years. At nearly $1400 per ounce, the average investor is not in the market for a bar that size, and even those who might afford would find it difficult to unload a bar that size to their local dealer.
This is why an average customer buys gold in one ounce form, and the cost to acquire gold in smaller quantities is higher. A lot of factors help to dictate the price disparity, not the least of which is the relative cost of minting a large bar of refined gold into one ounce coins.
These coins ship from large mints like the United States Mint and the Royal Canadian Mint of Canada to select authorized dealers, who in turn ship them to over 4,000 coin dealers in the United States alone before they find their way into the hands of a gold investor.
Have it in mind that there are shipping and insurance charges through each stage of the process, and before an investor receives his gold shipment, he may have paid brokerage fees, , or other ancillary charges.
Research has shown that a lot of dealers will not ship below a certain volume, while some will not ship above a certain volume. Certain dealers have different price breaks at different quantities. For example, one dealer may offer a discount for buying more than fifty coins, while another may offer a break at sixty.
Are Their Ethical Concerns With Buying Gold
More and more investors are worried about the social and environmental impact of their investments, and gold mining can leave a significant toll on the environment and raises concerns around human rights and governance since gold mines are located in conflict-affected or otherwise high-risk areas.
In 2019, the World Gold Council took steps to implement guidelines for member companies, as did the International Council on Mining and Metals. Both require that participating mining companies publish information on their progress publicly, making it easier for consumers to find.
How Do They Price Gold
If any of the above gold products pique your interest, it is time to research pricing. Typically, the higher the amount of pure gold in the bar, the more expensive it sells. In that vein, it is similar to jewelry prices.
You also need to consider another factor that comes into play with gold prices. A gold spot price is the current market cost for gold. Like stocks, goldâs value changes by the second. Therefore, a gold seller will always price their products according to the spot price.
The two most popular places that list gold prices are the NYMEX and COMEX exchanges.
Like jewelry retailers, the top gold brands, such as PAMP Suisse, will often charge more for their products. You might see this price change reflected in the premium costs or the product itself.
As such, you will see national mints such as the Canadian Polar Bear have high price tags. Any bar or coin processed by a countryâs government has brand recognition and can command top dollar.
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Popular Designs Of Gold Bars
As mentioned above, youll find a great deal of variety awaiting as you shop for gold bars. However, the variety doesnt stop at the weights of the available bars. Gold bars also come with a wide array of designs. Some are so popular they are viewed as symbols of excellence within the precious metals industry, while others represent limited-time offerings. The following is a brief overview of some of the most popular gold bar designs:
Is Gold Bullion A Good Investment
This is a question that crosses the mind of every beginner. Knowing whether gold bullion is good for investment helps you make informed decisions. Yes, gold bullion is a good investment, and you wont go wrong with it if you understand how the gold market works.
Various factors make gold a better investment than most physical assets. One is the fact that its value doesnt decline during economic crises. However, currencies fail in such times, and people holding paper money face many risks.
Another reason gold is a good investment is the fact that it is universally acceptable. Gold has the same value anywhere you go around the world. And, its demand also doesnt change, so you can be sure that it will sell anytime anywhere and help solve financial emergencies.
Those are examples of the reasons gold is an excellent investment. People invest in gold with personal reasons in mind. Some do it for prestige, while for others, holding gold is a hobby. Thus, you do not have to invest in gold bullion for profits.
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Important Gold Bar Language & Terms
Gold bars can refer to a multitude of different things. Also called ingots or bullion, a gold bar in the most simple terms is gold of certain purity that has been formed into the shape of a rectangular cube. However, there are a lot more terms that can be applied to better describe a gold bar. For instance, if a gold bar is minted, that means it went through a more rigorous creation process. It involves a bank or refinery cutting the gold into set dimensions. In this way, minted gold bars should all be precise in regards to dimensions and purity. A cast bar is easier to make. It merely involves pouring the melted gold into a mold and then letting it form and harden into a bar form. Since these bars aren’t cut to specific dimensions, cast bars may be unevenly shaped and vary slightly in appearance from bar to bar. It’s often common for cast bars to be handled differently than minted bars. A mint bar will frequently be sealed in a protective packaging whereas a cast bar is more likely to be handled directly.
Gold bars, be they mint or cast, are especially popular due to the low premium they carry when compared to smaller pieces like gold coins or rounds.
Gold Bars Vs Gold Coins
When you decide to invest in gold, you must think about which gold products work better for your investment strategy.
You will find two main gold options to consider: gold bars and gold coins.
Gold coins offer many benefits to investors, such as variety, legal tender, liquidity, and more. Also, investors tend to buy a sizable amount of gold coins at a time. Doing so allows you to sell them off at different times when gold is at a premium.
However, one of the disadvantages of gold coins relates to their ability to easily become lost or misplaced. Once you lose your gold coins, your investment goes out the window. That is why many investors are going the EFT route with their precious metal investments.
Alternatively, gold bars offer several investment benefits. These advantages include bulk savings, high-volume diversification, and low premiums. Since it costs less to produce gold bars than coins, this means you can take advantage of many savings.
A disadvantage of gold bar investments is you do not earn dividends as you would with stocks. Therefore, you must rely on the price of gold to increase before earning a profit off your gold investment.
Fortunately, we anticipate that the price of gold will continue to rise. Regardless of which gold type you invest in, you will discover many profit opportunities.
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Buy Gold Bullion Online
There is no precious metal in the world coveted more than gold. The famous yellow metal has been a standard by which wealth is measured for centuries, and as civilizations took the first steps out of the Dark Ages and into international trade in the Middle Ages and beyond, gold was there as the standard unit of commerce used by nations and people who spoke different languages. Despite language and cultural barriers, everyone understands the value of gold. Today, gold bullion remains a primary vehicle for private investment and the protection of wealth. The JM Bullion catalog contains a wide array of gold bullion products, some of which you can learn more about below.
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Gold Bar Brands Matter Choose Wisely
Tip: Buy only gold bars with a recognized hallmark and proper stamping.
Proper stamping and a recognized hallmark mean youre getting a reputable gold bar. There are some private mints in the world that dont include all of this information, which could mean its not a pure gold bar or has low quality. Its important that you know how to make sure your gold is real.
Stamping: a reputable gold bar should have its weight, purity, refiner, and a registration number stamped on it.
Its important to buy gold bars with these markings. Without them you dont know what youre getting, and a future buyer will probably demand an assay.
Theres an easy way to assure your gold bar has proper stamping, and thats to buy bars with a
Reputable hallmark: A hallmark simply refers to the brand of the barthe refiner or manufacturer that minted the bar. You want a well-recognized hallmark so that you know youre getting a high quality bar, and also so that youll have no difficulties someday selling it. A good hallmark will allow you to sell the bar virtually anywhere in the world. It is highly liquid.
Here are some of the worlds most highly regarded refiners:
There are others, such as the Sunshine Mint and Republic Metals .
Finding A Reputable Dealer
Its best to do business with a large, established gold dealer who is located in the United States. Do an internet search of the dealer’s name that youre considering doing business with and see what comes up. Look at customers reviews, and also take note of how long the dealer has been in business. Check out its Better Business Bureau rating. Once youve determined which dealers are the most reputable, you can browse their websites for the different types and weight of gold bars they have for sale.
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What Is Gold Bullion
Many people today have an interest in investment gold. They lack enough information about it to be able to make informed investment decisions. Understanding the gold industry is key to ensuring that you get the desired returns on your investment.
For instance, being able to differentiate gold and gold bullion is crucial. It will help you know if you are about to put your money in the right place. Many people confuse gold and gold bullion and sometimes use them interchangeably, but they are different in reality.
Gold bullion is the main focus of this blog post. It will define what gold bullion means and help you differentiate it from other gold products like fine gold, numismatic coins, or gold jewelry. This will make it easier to know if gold bullion is worth investing in and whether it can bring the desired returns.
It will also look into how people use gold bullion across the globe and also look into the value of gold bullion coins and gold bullion bars. Youll be able to differentiate gold bullion from gold by the end of reading this blog post. Take your time to read to the end to ensure that you make the right investment decisions when entering the gold market.
Lets get started.
Gold Bullion: Bars Vs Coins
We already mentioned that gold bullion could only be physical. And the most common forms of physical gold are bars and coins. Many people think that gold bullion is only in bar form, but it can also be in coins. Thus, you have a choice to make when looking to buy gold bullion.
The significant difference between bars and coins is the shape. Otherwise, they could contain similar quantities of gold. Coins are often more expensive than bars. The high prices result from the amount of work and time invested in designing them into their shapes.
Gold bars are simple since all you need is to cut them into your preferred sizes. This is why they come slightly cheaper than coins. It is also the reason they are more attractive investments for beginners. If you are looking to enter the gold bullion market, then bars could interest you.
Coins, on the other hand, come with one significant benefit. They are much easier to liquidate than gold bars. Their small size and the fact that they come in usable form make them attract more investors. You can, therefore, never go wrong with gold coins if you want to multiply your wealth.
However, both are viable options for an investor looking to enter the gold market. All you need to do is consider your budget, needs, and preferences. Once you do, it will be easier to choose the best investment option for you between bars and coins.
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How Is A Gold Bullion Used
It is vital to understand the use cases for gold bullion. That will make it easier to decide if it is worth owning. Well, people invest in gold bullion because of its ability to store value. It is highly dependable for keeping value, and it has a high universal purchasing power.
You can use gold bullion to store value for the short or long term. Most long-term gold bullion collectors are government mints, central banks, and private mints. Most individual investors hold it for the short term, but seasoned investors buy a lot of physical bullion for the long term.
The first step to investing in gold bullion is deciding the type. You can invest in bars or coins and later dispose of them whenever you want. Also, you should find reputable bullion dealers to work with when looking to invest in gold. A dealer like Acre will make your investment journey smooth.
Theyll make purchasing gold easy as they have flexible payment options. That makes it easy to stack your gold without having to break the bank. Before you know it, youll have enough gold to make you profits anytime you decide to sell it to a dealer.
Johnson Matthey Gold Bars
These British producers of gold have over fifty years of gold sales experience. Still, the company continues to grow each year. You can attribute this growth to its superb gold products.
Flexibility is not an issue when you buy gold at Johnson Matthey. Its products come in all shapes and sizes. While minting processes are typically expensive, Johnson Matthey offers low premiums with a simple gold ingot.
Johnson Matthey bars make ideal investments for first-time gold buyers, as they represent one of the most trusted brands in the precious metal industry.
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Which One Should You Buy Gold Coins Or Gold Bars
Gold is one of the most popular metals in terms of investment and sale. Indians buy gold for various purposes ranging from jewelry to investment. Gold is not just about flashy bling but also about substantial savings and returns on the money that is invested in the metal. Buying gold in the form of bars or coins is generally done by customers who are looking at it from pure savings perspective. The value of gold, historically, has always appreciated with time, making it an extremely rewarding metal to own.
The crucial role played by gold in almost all Indian weddings and during all major festivals is what makes customers so drawn towards the yellow metal. There are times when people want to just buy gold in its purest form and keep it for future use. This future use could be getting jewelry made out of it at some point of time later or selling the pure gold after it has appreciated well enough to yield substantial profit. Any customer who is looking to buy pure gold for keeping it as savings, has two forms that can be availed, coins and bullions or bars.
Q: So Where Can You Store Gold Bars Not Held In An Ira
A: If you purchase gold bars that are not intended for a gold IRA, you can keep them wherever you want.
But for at-home storage, its best not to bury gold bars in the backyard or put them under your mattress. Rather, consider getting a sturdy safe thats made for holding precious metals.
If you decide not to keep your gold bars at home, consider a safe deposit box at a bank or, better yet, an authorized precious metals depository or vault.
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Understand How To Read A Gold Bar
Unlike some gold coins, gold bars are typically not produced with special designs that majorly impact the bars market value. They are, however, produced with identifying marks that provide information about the bars producer, weight and gold purity, and sometimes a serial number.
The bars producer
Buying a gold bar with a well-known hallmark can be beneficial in terms of liquidity. A hallmark is a stamp that is unique to the bars producer. It functions similarly to an items brand. The more well-known and respected a brand is, the easier it can be to sell or trade the brands products in the future. A respected hallmark can bolster a bars liquidity. The Perth Mints hallmark is pictured on the right.
Gold bars are available from trusted government and private minting institutions alike, including from the Perth Mint in Australia, Johnson Matthew, Asahi, and the Royal Canadian Mint.
The bars weight and purity
How a bars weight and purity are marked will depend on the bars producer. Some mark these details in large numbers and letters separately from the hallmark, like the Perth Mint does in the example on the right. Other refiners, like Johnson Matthew, incorporate the bars weight and purity within their hallmark.
The bars assay card