Gold is one of the most in demand precious metals. The cost of a gold bar depends on the current price of gold, and the size and weight of the bar itself. They come in different sizes and vary in weight as well. Knowing the current gold spot price is essential if you would like to invest in this precious metal for profit. Unlike money, which is greatly affected by the inflation and deflation of its value in the economy, gold bars are not affected by any financial crisis. The only factor that affects the price of gold is its scarcity and availability.
Surely you will encounter the term “premium” when buying them. This refers to the manufacturing cost of a gold bar, including the profit of the gold dealer for each sale, and the insurance of the gold bar itself. Additional charges like the shipping fee will also be included if you are buying from an online store or from a dealer in a different location.
The Purity Factor
Another factor to be considered when buying gold bullion bars is the purity. This pertains to the amount of gold that the bar actually contains. If you will notice the ends of a gold bar, there are digits stamped in. This is the purity of the gold bar. The universal value of gold is 99.99 percent purity. The purity of the gold depends on the country it is originating from. For example, a gold bar with 96.5 percent purity is from Thailand.
To avoid confusion, follow the standard units used when weighing gold. The most commonly used unit of measure is ounces or troy ounces. Take note that when you see the price listing of gold bars, it is on a per ounce basis, and not the price for the whole gold bar itself. On the widest side of the gold bar, you will see its weight in troy ounces stamped in.
Getting your Money’s worth
Because investing in gold means spending a large amount of money, it is wiser that your buy gold in bulks, rather than piece by piece. When purchasing gold in bulk, it is actually cheaper than buying gold by the piece. Also, buying in bulk means a much lower premium. Remember to buy from trusted accredited gold dealers to make the most out of the premiums that they have to offer.
Do not hesitate to ask questions if there are certain details that are not clear to you. You should not rush, especially if this is your first time to purchase gold and make an investment from it. Gold is a precious metal, so it is best that you have it insured for your safety right now, and into the future. Most often than not, the insurance is already included in the cost of a gold bar. Patience is also a key to being a gold investor. It may take time, but the profit that you will gain from your investment will definitely be worth the wait.