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Why Buy Gold bars? - Gold Bar FAQ | The Gold Bullion Co

Why Buy Gold Bars

For as long as anyone can remember, we’ve tied gold to the concept of value. Indeed, it should come as no surprise then, to learn that gold has a stable value and is highly appreciated by amateur investors and expert brokers alike.

If you’ve considered investing in gold but have yet to consider it, you will be pleased to know it is a relatively safe option compared to other alternatives. You don’t need to spend much to get started, yet you can acquire material that is known throughout the world for its value.

What Are Gold Bars?

As the name suggests, Gold bars represent gold that has been smelted down into bar-shaped ingots: this is also sometimes refereed to as bullion.

There are many different types of gold bars available, as there are numerous industry standard sizes available. Because gold is used as a financial investment, these standards are very specific. They come in various measurements, but typically only troy ounces and grams are used.

Gold reserves and banks often trade in larger bullion, using the 400 troy ounce (12.4 kg) and 32.15 troy ounce (1 kg) bar sizes. However, for personal traders, smaller sizes are available. The most popular is often the 1 gram bar. Other sizes include:

  • 2 grams

  • 2.5 grams

  • 5 grams

  • 10 grams

  • 20 grams

  • 50 grams

  • 100 grams

  • 250 grams

  • 500 grams

  • 1/10 ounce

  • ¼ ounce

  • ½ ounce

  • 1 ounce

  • 2.5 ounce

  • 5 ounce

  • 10 ounce

  • 400 ounce

Alongside this, gold bars also need to be pure. As such, the common standard is 24 carat, as this represents 100% pure gold. Bars are often given in a percentage of 24 carrot. For example, a 99.99% 24 carat bar only contains 00.01% of any non-gold material.

Gold Bars As Investment Opportunities

Gold is often valued as an investment material for numerous reasons. Firstly, it’s value is not tied to any one specific currency, so its value does not wildly fluctuate as much as individual currencies do. In essence, you could use gold to store value without relying on the varying rises and downfalls of your the pound.

Secondly, trading in gold is both stamp duty free and tax free in, which is of big appeal for people looking to make large or significant investments. This applies to both the European Union and the United Kingdom, thanks to the EU Gold Directive from 2000. In other words, VAT does not apply to gold, so you do not lose value for acquiring or trading it.

Combined, these two factors make gold a very worthwhile investment. It doesn’t lose its value, since this is tried to various central banks rather than individual markets, and it can be traded easily. This makes it a wise staple in any portfolio, as it can often provide a stable fallback option, or even as a means to pass on financial value without relying on traditional currency.

Compared to company shares, property and other expensive assets, which can all rise or drop thanks to various relative factors, gold offers a more reassuring option.

Other Reasons To Buy Gold Bars

Aside from its financial value, many people appreciate the safety of having a fallback option they can rely on. This, in turn, makes gold bars a great option for gifts and presents.

Of course, it should go without saying that many people are drawn to the physical and aesthetically appealing appearance of pure gold, but that’s far from the only reason gold remains highly popular.

They’re tax-free status makes gold bars safe to acquire and easy to pass on to others, whether this is in terms of a gift or inheritance, without worrying about additional taxes.

Many also appreciate the tangible nature of gold. Other assets, such as shares, are incorporeal in nature. Having part of your portfolio that can be physically held and stored can often be reassuring for people who actively deal in the value of intangible items.

Finally, if you ever want to part with your gold, it is very easy to sell. Gold is always in demand, resulting in a strong, active market, as the material is known for providing a stable value. This means you can sell your gold with relative easy, getting back much (if not all) of your initial investment.

Gold Bars Vs Gold Coins

You may notice that gold bullion is traded in both bar and coin version. However, many investors prefer to choose bars over coins for a few distinct reasons.

Gold is appreciated for its value and, for those who like to collect gold in large amounts, bars have a natural advantage. Few coins are made bigger than 1 ounce, whereas larger bars are readily available. This means that, for investors who regularly invest in gold, bars are the standard that they look for.

Similarly, gold coins arguably offer less value, as they can be used as legal tender and are often seen as collectables. This gives them a value that is not directly tied to the material itself, which increases the risk from a strictly financial perspective. As mentioned earlier, a highly appreciated aspect of gold is the ability to hold its value, irregardless of currency, and this is better achieved with bars.

Buying Gold Bars

So, if you’re looking to expand your range of investments, or want to secure some of your financial assets, gold bars are worth your consideration. It’s also worth noting that it is a relatively easy market to get into, as it does not require insider knowledge or plenty of experience.

While gold bars won’t rise drastically, they also haven’t dropped. If you want to try something that is stable, safe and with far fewer risks, gold bars have plenty to offer and consider.

As long as you are aware of the different sizes, purities and the need to purchase certified gold from respective brokers, gold is something that everyone can understand, appreciate and value.