For thousands of years gold has been viewed as a symbol of wealth and no matter who you were, if you had gold you had respect. Most people think that to own gold you have to be a millionaire but in reality nothing could be further from the truth.
While gold is fairly expensive, it does not require a fortune to own. 20 gram gold bars can be great for smaller investors or even as a gift to someone who may benefit from learning about the value in precious metals.
While it may be hard to imagine that 20 gram gold bars produced by different companies will be drastically different, the fact of the matter is that the brand name behind the bar means everything to some investors.
Brand names can even mean that an investor will shell out more money for a 20 gram bar produced by a certain company over a cheaper, more generic gold bar of the same size. In the following few sections we will discuss everything you need to know about 20 gram gold bars including the different producers, premiums over spot value, and just about everything else.
Types of 20 Gram Gold Bars
We touched on it a bit in the previous section, but it is important to reiterate that not every 20 gram gold bar is the same. Some investors will favor one producer of gold bar over another to the point where the demand for a certain company’s bar will drive the price up.
In most cases the company who produced the bar does not really make a difference, what really ends up mattering is the condition your bar is in.
There are also gold bars that have special inscriptions and pictures on them and these are typically referred to as “art bars.” While these bars may be beautifully crafted and in flawless condition, not every investor is willing to pay extra simply because a bar has a special picture on it.
If you check out some of the most popular bullion dealers such as JM Bullion you will see that there are quite a few different companies who mint 20 gram gold bars. In your search for bars to invest in you may come across 20 gram bars produced by some of the following companies:
- Perth Mint
- Pamp Suisse
- Credit Suisse
When it comes to gold and especially gold bars, the way the metal is packaged is absolutely critical. This is true because gold is one of the softest metals in existence and for this reason it is highly susceptible to being damaged and show visible signs of wear and tear. In most cases you would be smart to seek out bars that come with some sort of protective casing especially when ordering online as your gold must endure the journey from dealer to you.
In addition to protective casing, you are going to benefit highly if you purchase bars that come with assay. If you are confused, assay is no more than a certification that the bar you have received is actually a pure 20 gram gold bar. Since gold bars that are shipped in protective casing tend to remain in the case, the only way to be sure that your bar is actually made of gold and isn’t fake is by having assay.
It is not worth risking your money in either scenario because damaged gold can be just as invaluable as counterfeit gold. Save yourself the hassle of dealing with a fake or damaged metal purchase by investing in 20 gram gold bars that come with protection and assay.
20 gram gold bars are by no means the largest bar out there for investors to purchase, but with that being said they are not nearly the smallest bar either. Since every producer is independent of the preceding one, the sizes of two different companies’ 20 gram bar may be slightly different.
Even if there are minor variations in the size of the bar, most bars of the same weight will more or less be of roughly similar dimensions. When you purchase a 20 gram gold bar, you can expect your dimensions to be about 39mm long x 22mm wide x 1.3mm in depth.
Premiums Over Spot
When purchasing gold online or in a brick and mortar store the price of your purchase is never going to reflect the current price of gold on the market exactly. Since these dealers are in business in order to make money they would quickly run out of business if they simply sold the gold for exactly how much the market said it was worth.
Because of this, dealers apply a premium over the current market value in order to cover the costs of running business as well as hopefully turn a profit. Every gold bar you buy will likely have a premium over the spot value and the larger quantity of gold you buy the smaller the premium will be. For this reason it is never a bad idea to make purchases in bulk.
When searching for 20 gram gold bars to invest in you can expect a premium over spot value anywhere from $40 to $60 dollars. If you are paying more than $60 dollars on top of the price of gold present in your bar then I would advise you to strongly reconsider your purchase.