Your basket is empty
Buy Gold Bullion
MasterCard SecureCode Verified by Visa
You are not signed in | Sign In | Register

Could small gold bars be the key to investment success?

Thursday, May 18, 2017

The gold market has a strong and healthy history of coming through financial downturns relatively unscathed, with its long-term stability and the intrinsic value of gold prompting many to buy gold bullion as a way of securing their wealth against potential financial turmoil.

In February, we reported that demand for investment gold is rising, with UK sales for gold bullion coins and bars increasing by 28 per cent from 2015 to 2016. This rise in sales came in the wake of a dip in the value of the pound post-Brexit as UK investors sought a way to secure their finances in the face of uncertainty.

Investors have long bought gold bullion to protect themselves against the instability of other more volatile markets, generally exchanging great sums of money for large bars of gold that guarantee the security of holding a physical asset that retains its value, or investing in gold bullion that they will never even physically hold themselves.

The downside to this approach comes when capital is needed quickly. If you find yourself in a situation where you need cash fast, larger gold bars can prove troublesome. They’re harder to sell quickly, especially if you’re interested in freeing up just a small percentage of the bar’s overall value.

Small gold bars, in comparison, are an easily realisable asset that offer the flexibility of dealing in lower increments. They offer investors the potential to portion their wealth more precisely, giving you more options should you need to access their value in an emergency.

Additionally, small gold bars are easier to store; great if you prefer to keep your gold close to hand at home. As well as having small gold bars available instantly in a crisis, keeping them at home reduces storage costs. This can benefit owners with smaller amounts of gold, although those with larger amounts should weigh up the costs of storing gold securely at home against the costs of paying for professional storage.

The crucial thing to remember when making the decision to buy gold bullion, is how quickly you might need to access the value inherent in your gold investment in the future.  

Larger gold bars provide slightly more value due to the lower fashion fees (an additional charge to cover the cost of production and packaging) but are generally only purchased when the investor is confident they won’t need access to the capital in the foreseeable future.

Small gold bars certainly, on the other hand, are a much more flexible option for those looking to buy gold bullion for short-term security. The fact that it’s much easier to realise their value, combined with reduced storage costs and direct access make them an excellent choice for many investors.

The Gold Bullion Company offers a wide range of gold bars for sale in a variety of sizes. Take a look at our stock and prices here.