Investing in Gold Bars
Gold bars are some of the oldest forms of metal currency. For centuries, gold set the standard for value of national currencies. Despite the world's departure from the gold standard in the twentieth century, gold bullion continues to be an asset class in many investment portfolios, and is prized for its historic role as a store of wealth, and due to the positive diversification benefits that accrue when investing in gold.
Gold bullion coins and bars are produced by National mints worldwide, as well as by a number of private refiners. Gainesville Coins carries a wide inventory of gold bullion coins and bars, including the U.S. Mint's gold bullion coins - the gold eagle and gold buffalo - and gold bars from the PAMP refinery ranging in size from 1 gram to 1 kilogram. Perhaps the most well known gold bullion coin is the South African gold krugerrand. Investing in gold involves choosing among the many gold bullion options from Mints and refiners worldwide.
Gold Bar Facts
Generally smaller size bars, such as the 1 oz gold bar, are easier to handle, transport, store, and ship. They tend to sell at a higher premium over spot than larger bars. This premium represents the cost of the bar beyond the spot value of the gold it contains.
Although gold bullion bars are manufactured worldwide, all minting companies adhere to common standards regarding the weight and purity of gold bars. Also known as gold ingots, each gold bullion bar is engraved with a serial number, which also appears on a matching certificate. This certificate, from the mint of origin, serves as a government-issued value guarantee for the gold bar and makes the bar legal tender. These gold bars, however, are not intended for circulation, but rather for holding as gold investments.
The variety of gold bars is seemingly endless, but certain gold bullion bars are more common and are more widely respected in the gold investing community. Internationally, about 55 different organizations produce London Good Delivery gold bars. These bars are certified at least 99.5% pure, and range in weight from 350 and 430 ounces. Meanwhile, 10 oz gold bars are probably the world's most popular gold bars. Certain brands of these gold bars, such as Pamp Suisse, have gained notable popularity among investors.
In addition to these bars made for investment purposes, many countries manufacture their own gold bars and bullion products. For instance, Tael gold bars are produced in China. These products come in the shape of "biscuits," "boats," and "donuts," traditional shapes for currency that have endured since the Han dynasty, which began in 206 BC. Thailand's Baht are also well known, as are the Tezabi of Pakistan. Despite the historical and anthropological significance of these gold bars, their production is not as heavily regulated, so they are less popular among investors.
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