Buy Bars of Gold

About Gold Bars

For over 5,000 years, gold has been highly sought as valuable asset from people in all walks of life. Gold holds its value for many years since it hedges against inflation or when the dollar (or other currency) falls. For these reasons, it thought to be a good investment.

What defines a gold bar? It is thought to be any gold product made by a manufacturer, regardless of its shape. The quality (purity) of gold is measured in karats, which is essentially a percentage in parts per thousand. The purest form of gold is the 24 karat, which is 99.9 percent gold with some possible impurities. Eighteen karats is 75 percent gold, while 12 karats is about 50 percent pure.

Today, you can buy bars of gold in 1 kilogram, 1 ounce, and up to 400 ounces in size. Most bars look like bricks in shape, while the smaller sizes are called biscuits or wafers. The gold is manufactured around the world in Europe, South Africa, Australia and many other countries. When produced, the bars will have the manufacturer’s name stamped on it, as well as its exact weight and purity.

Types of Gold

There are different types of gold. This will come in to play mostly when the metal is related to gold jewelry. The different colors available are due to a mixture of alloy metals along with the gold. Keep in mind that the higher the purity of the gold, there is a smaller percentage of other metals combined with it, and the more rich yellow it will appear. Here are some of the most common types of gold blends:

• Yellow Gold – A blend of 50 percent silver and 50 percent copper is combined with the gold to get this classic hue

• White Gold - Nickel, zinc, copper, tin and manganese gives gold this stunning bright whitish color

• Pink (rose) Gold- A blend of 90 percent copper and 10 percent silver is combined with the gold to get this unique color

• Green Gold – A high proportion of silver or cadmium gives gold a greenish tint

• Blue Gold- A small amount of iron mixed with gold results in a bluish color

• Grey Gold- About 15 to 20 percent iron combined with gold gives gold a grey color

How to Buy Bars of Gold

Buying gold bars is a long-term investment. The important thing to remember is that you need to purchase from reputable sources. There are a lot of fraudulent organizations out there that take advantage of uninformed consumers. A good place to start is The US Mint website. Their references are guaranteed to be solid places that are safe from unfair business practices.

• How much does gold cost? Gold’s price is based on the current market value. A premium is also added to the cost of the gold when purchased. This premium is highest with small purchases and is less with a bigger volume transaction. However, there is a minimum amount you would need to spend to buy gold (one gold bar will not be enough). Consult your gold distributor for more details.
• Where do you keep gold? Due to its valuable nature, most investors keep their bars in a bank vault or depository box. There is a fee for this service, so include it in when you are factoring the price of your total investment. You still have the option to store it yourself, but do so at your own risk.

Gold is a good long-term investment to diversify your portfolio. With a bit of knowledge on your side, a trustworthy distributor, and a safe place to store it, you can be sure that your money is well spent when you buy bars of gold.