Investing in gold has been something humans have done in one way or another for many centuries. The price and value attributed to the yellow metal has changed over the years and while it has fluctuated a lot it has always been incredibly valuable. Investors that purchase 1 ounce gold bars often find that the money they spend on the initial purchase quickly becomes worth it and then some.
There is a lot of information about 1 ounce gold bars that you are unaware and before ever even thinking of making a purchase it is your duty to inform yourself as to avoid any of the common perils the unwary investor becomes victim of.
There is a lot about investing in gold that you likely do not know and the following few sections will attempt to clarify any and all questions you may have. You may think every 1 oz bar is the same but the reality is that there are a variety of different companies that produce them and even more dealers, both online and brick and mortar, that distribute them to everyday investors.
Types of 1 Ounce Gold Bars
As far as investing in gold goes, 1 ounce bars mean you are at a point where your investing is beginning to get serious. While there are plenty of larger bars, the 1 ounce version is one of the most heavily consumed type of bar. Most people think that every 1 ounce bar is the same as the next but really they are created by a bunch of different producers who are all vying for your business.
Each producer employs tactics in order to get you to purchase their bar, even if it means spending a few more dollars. Why would anyone ever spend more money for one gold bar while passing up a cheaper bar of similar size? The answer to that question is brand loyalty and much like you see in just about any other industry brand loyalty exists amongst precious metals investors as well.
To find out what types of bars you like the best you will simply have to explore the different options. At the end of the day, as far as bars go, the producer does not matter as much as many investors think. In fact, as long as your bar is in good condition and is not counterfeit, you will have no problem trading or selling it. When in the market for 1 ounce gold bars you can expect to come across the following selection of producers:
- Pamp Suisse
- Sunshine Mint
- Johnson Matthey
Before purchasing any type of gold bar, but especially 1 ounce bars, it is your job to find out how your product is going to be packaged. In most cases you will find that these bars will be encased in plastic accompanied with something called assay.
Assay is certification, usually present on the plastic encasing itself, which guarantees the owner that the gold bar inside the plastic is actually real gold. The reason for this is that usually when gold is encased in plastic it stays in the plastic and remains untouched and the only way to be sure the gold is real is with assay. Without assay you are risking the authenticity of your product but so long as you are purchasing your gold from a reputable dealer your product will be authentic.
In a lot of other cases 1 ounce gold bars are simple shipped as is and not accompanied with any sort of special casing. Of course it is important to buy these types of bars from reputable dealers as they are not accompanied with assay. If your bar purchase does not contain a case it is important that you take special care of the bar itself as gold is a metal highly susceptible to being damaged.
Like discussed in the previous few sections, 1 ounce gold bars are not a very small bar but at the same time are not very large either. If your bar is not encased in protective plastic it is important that you take special care of your bullion. The size of these bars mean that it is easy to store in just about anywhere inside your house, making your life easier as an investor. Most 1 ounce gold bars have dimensions of 42mm x 24mm x 2mm.
Premium Over Spot
When you are investing in gold bars, it is important to stay up to date with the current market value of gold. This value is always changing and thus so too are the prices which online dealers charge to everyday customers. Since all online precious metals dealers are in business in order to make a profit, simply selling gold at a price that matches its current market value will not yield anything but a break-even.
Instead, in order to cover the costs of business as well as turn a profit, these online dealers charge a premium in addition to the value of the gold present in the bar. Your goal as a customer is to find the most competitive premium.
As far as 1 ounce gold bars go you can expect to find premiums ranging anywhere from $35 to $50. The amount of the premium depends on a lot of things including the producers of the bar, the dealer, and the ever changing value of precious metals.