Buying Gold Bars: What You Need to Know

Gold is one of the best investments that you can have. Whether it’s coins, bullion, bars, gold certificate, stock in a mining company, or mutual funds, you’ll surely have a stable future if you have gold investments.

Investing in gold is a fulfilling way to save for the future. For beginner investors, however, the processes involved in buying gold products can be quite tedious, as there are many things they need to know and do to ensure they are getting the best deal.

The Different Gold Suppliers

Gold suppliers fall under three categories, including manufacturers or refiners, dealers, and fabricators. Other than standard bars, gold manufacturers or refiners usually produce customised bars for gold-dealing banks around the world. These bars feature the name or logo of the bank on their surface as well as the certification mark of the refiner.

Dealers provide gold bars or coins for sale to national markets and can be classified into two: international and national dealers. International dealers order large quantities of gold bars from refiners to supply fabricators, dealers, and other trade bodies around the world. National dealers, on the other hand, provide their national market with gold products by buying bars from international dealers, local refiners and manufacturers, or from local exchanges. Fabricators use bars, granules, and other forms of gold products to manufacture jewellery and other products that contain gold.

Selecting a Dealer

As gold is a sizeable investment, it’s important to choose a dealer well. Select a reputable dealer like Atkinson the Jewellers which you can establish a long-term dealing relationship with. To be sure that you buy gold bars which you can trade with other dealers in the future, use a dealer offering bars well-known in your country and manufactured by an accredited refiner.

Choosing the size

As gold bar dealers offer a wide range of bar weights, you can find gold bars perfect for your investment needs. When choosing the size, always think on the future. Smaller bars can accumulate a gold investment over time and give investors a capacity to sell their gold in small amounts in the future. Large bars, on the other hand, usually have lower percentage mark-ups or premiums above the value of their fine gold content.

Knowing the Pricing

As different dealers have their own pricing policy, it’s important to be aware of your dealer’s gold pricing rule. Before buying a gold bar, you should calculate its premium above the value of its fine gold content and the spread between its original price and its sell-back price. The premium of the bars sold by dealers includes the refining and manufacturing of the bar and the delivery of the bar to the dealer.