You may now invest any amount in gold, from 1 gram to 10 large bars, at Where to buy gold bars. Go here for a detailed explanation in the cheapest, safest, and fastest way to buy gold.
Gold bars come in various shapes and forms, and purchasing in bulk saves you money.
At most expensive end of your gold bar price scale, one-gram “novelty” gold bars are minted to the gift market. Often coated in plastic, these tiny gold bars cost at least two times the value of their gold bullion content.
Cheapest of most, in contrast, 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 of the world’s 24-hour gold market.
It’s the live dealing within these 400-oz gold bars, combined with the trade in Comex gold market-approved bars in New York (100 oz), that produces the spot gold price the thing is quoted on the internet and within your newspaper.
There are many than 30 types of gold bar circulating from the world’s regional gold markets today. In value terms, by far the most heavily traded gold bars – with all the largest ready market, open 24 hours a day, five days per week – are the Good Delivery gold bars bought and sold through dealers operating in London.
Sixty-three active gold refineries, all closely monitored and licensed by the Precious metals service, make around 150,000 of such 400-ounce gold bars annually. That’s worth some $102 billion at current prices (Jan. ’13).
Inside the smaller, local gold markets of India, Singapore and also the Middle East, probably the most widely traded gold bar is definitely the “ten tola” bar. Rarely stamped using a serial number and weighing 3.75 oz (117g) each, two million of the “TT” gold bars are cast or minted annually.
The most famous gold bar in China is the “five tael biscuit” bar (6 oz; 187g). Manufactured in Hong Kong, five-tael gold bars are approved and recognized by the Chinese Gold & Silver Exchange, now operational for up to a century.
Outside Asia, the most famous gold bar sold to private investors for personal storage will be the kilobar (1000g; 32.15 ounces). Greater than a million of such gold bars are made every year, most often in Switzerland.
The top gold-bar refineries also make vast quantities of merely one-ounce gold bars each and every year – and much like the kilobar, these gold bars are widely promoted being a cost-effective route to gold investment.
But these smaller gold bars, although they’re less than gold coins, don’t come without significant drawbacks.
Buying gold bars is virtually always less expensive than buying the same weight in gold coins – as well as the bigger each bar, the low the fee by weight.
Dependant upon the local tax regime, you may reduce or completely avoid paying sales tax (VAT) by buying gold bars as opposed to coins, too. Your savings will even depend on the high quality (or “fineness”) of your gold bars you get.
Trading Good Delivery gold bars – sure to be of 99.5% fine or over – can then cut your tax bill again in several countries, because these 100- and 400-ounce gold bars are described as investment gold and qualified for personal retirement plans. Good Delivery gold bars decrease your costs further still by retaining main market deliverable status. Based on your viewpoint the reduction of private possession and insurance arrangements is another plus.
Smaller gold bars including 100g gold bars bought and stored in the home, however – as well as held in a bank safety deposit box – present three big drawbacks.
Specialist gold-bar storage programs – including gold pool accounts and certificate schemes – offer to help you eliminate the hassle of taking physical possession. This can help reduce the premiums you spend to buy gold then sell. However storage fees still run around 1.5% annually.
That’s a substantial charge for owning gold bars – a passive investment that pays you no interest. You will find a much cheaper route, however, into buying gold and owning it outright.
To retain Good Delivery status, the major 400-ounce bars of gold traded by refineries, central banks, wholesalers, Precious metals service must remain inside secure, recognized gold bullion vaults.
Take these gold bars away from market-approved storage – even going to store on your bank – plus they break the chain of integrity that guarantees each bar’s gold to the next buyer.
It’s the integrity of great Delivery gold bars that ensures maximum resale once you go to sell. But until recently, private investors couldn’t easily access this market unless these people were dea1ers to buy a complete 400-oz bar. Nor could they arrange market-approved storage unless they owned five big bars or more.
At BullionVault, however, now you can buy gold in amounts well under one gram at one time. Stored in market-approved gold bar facilities, your gold will retain its maximum resale value. Storage fees for getting a part of these big gold bars run as little as .12% per year, with insurance included. Estimate your commission and storage fees using our cost calculator.