Today, investors have an immense pool of options they can invest in, and all these assets come with varying degrees of risk. Gold investments are not going to get you wealthy within one night, but gold is one of those instruments that provide individuals with more stability in their investment portfolios. This is especially relevant in the contemporary world economic situation, which is unstable and accompanied by high inflation rates. For instance, one can invest gold through gold stocks, gold-backed IRAs, gold ETFs, or even buy gold bars and coins. Gold bars, primarily 1 oz gold bars, are popular. However, are 1-ounce gold bars considered a good investment in general?
Why Consider 1 oz Gold Bars?
When approaching the process of buying gold bars, an investor has to make a decision concerning the bar’s weight. In general, 1-ounce gold bars are preferred because they have the following advantages for investors.
Affordability and accessibility
Perhaps the greatest strength of 1-ounce gold bullion bars is their cost-effectiveness. These bars are relatively cheaper than the large-sized ones- and thus can be affordable for many investors, especially those with limited capital.
Liquidity (easier to buy and sell)
These 1-ounce gold bars are easily tradable since they are recognized globally as standard weights for gold. These are recognized internationally; this creates ease in the sale and purchase of precious metals. This benefit ensures that you can quickly convert your gold into case as and when required, giving you financial flexibility during emergencies.
Diversification
Investing in 1 oz gold bars allows you to add a new type of asset to your portfolio. In general, the price of gold tends to move in a more unpredictable pattern as compared to other investments, such as the stock or bond market, and thereby helps in diversifying the risk on the portfolio balance. It can provide some cushioning for your stocks in instances where the market is bearish or the economy is volatile.
Portability
The ease of use owing to convenient transportation is a positive feature. Large gold bars are comparatively a hassle to carry or even to store at home. 1 oz gold bars are stackable, can be stored in banks and safe deposit box without space constraints.
Divisibility
When it comes to selling or trading gold at Gold Spot Price, it is more flexible to own a number of 1-ounce gold bars. Such investments allow you to part with some of the stocks without disposing of the investment in its entirety. Also, some 1-ounce gold bars are made to be portable and can be split into smaller units of 1 gram for the relative ease of making benefit from only part of the gold that you own.
Security
Gold bars have always been viewed as safe-haven in the sense that they provide protection against any economic risks and inflation. Having physical gold is a hedge to many investors as it protects their investment against different economic indicators.
Understanding 1 oz Gold Bars:
Gold bars, also synonymous as gold bullion bars, as their name represents, are simple ingots of gold that stand in different sizes. Out of all the gold formats, 1 oz gold bars are the most scarce and come with certain nomenclature features. The weight of a one-ounce gold bar is precisely 31.1035 grams.
These bars are made from investment-grade gold bullion; thus, their minimum purity is 99. 9%. They are usually rectangular in shape and come in two main types: cast bars, created by pouring molten metal into a mold, and minted bars, which are cut from a cast bar and feature uniform dimensions and weight.
Manufactured by reputable mints and refiners worldwide, 1 oz. Gold bars boast various designs. Typically, the front of the bar displays essential information such as weight, purity, and the mint’s logo or hallmark, presented on a refined and polished surface. On the reverse side, intricate engravings or unique serial numbers may be found, serving both as security features and identifiers. The edges of the bar are sleek and smooth, enhancing its aesthetic appeal and ease of handling.
Popular Producers of 1 oz Gold Bars
Some of the popular producers of 1 oz Gold Bars are-
Argor Heraeus
It was established in Southern Switzerland and has become one of Europe’s leading brands in precious metal bars, with franchising from the London Bullion Market Association and the London Platinum and Palladium Market.
The Royal Canadian Mint
It is the official bullion manufacturer in Canada and has been providing gold or silver bars for decades worldwide, which are guaranteed by the Canadian government.
Metalor Technologies
A Swiss-based gold refinery with over 70 years of experience, it offers a range of cast and minted gold bars with simple certification stamps and customization options available.
The Perth Mint
It is based in Australia, and it refines the high purity gold bullion with a fineness level of up to .9999. Their offerings include both minted and cast bars in various weights, featuring specialty designs such as intricate dragons and hopping kangaroos, appealing to collectors and investors alike.
Valcambi Suisse
Originally based in Switzerland, it is a reputed firm in the bullion sector and offers a vast collection of bullion products that include Combibars.
The United States Mint
Based in Phoenix, Arizona, it has facilities throughout the United States and is one of the largest coin manufacturers for circulation, minting more than seventeen billion coins each year. While being an organization offering coins, it is also a supplier of high-purity bullion bars.
Additionally, several other reputable refineries approved by the London Bullion Market Association are worth considering for investment purposes, including PAMP Suisse (Switzerland), Johnson Matthey (UK), Umicore (Belgium), Asahi Refining (Japan), and Rand Refinery (South Africa).
Buying 1 oz Gold Bars:
If you’re considering purchasing 1 oz Gold Bars, follow these steps:
- Find reputable dealers: Select recognizable sellers of bullion, such as banks or government mints. Look into their credibility, authenticity assurances, and buyback provisions.
- Verify authenticity: Check if the bars have the symbols and numbers to guarantee that the gold is indeed genuine and where it was sourced from. The original dealers offer documents that testify to the purity and the weight of the precious metals.
- Compare pricing: Physical gold bars can be bought for the current Gold Spot Price plus possible additional manufacturing and/or shipping costs. To make the right decision when purchasing, make sure to compare prices of respective products from different sources.
- Consider storage: Evaluate storage solutions. If storing gold at home, then purchase a safe or other secure storage if effective security can’t be maintained; otherwise use professional storage in a vault or bank.
Conclusion
1 oz gold bars are a physical and easily manageable method of investing in gold. These qualities, including liquidity, portability, and divisibility, make it ideal for new and experienced investors alike. However, as considered when buying gold, it is important to conduct research, purchase from the right supplier and understand the function of gold in your portfolio.
