Gold Bullion Bar
The value of gold bullion has no artistic factor, unlike novelty coins, jewelry, or other small objects made from precious metals. This fact can be difficult to understand, but once you understand the monetary role of gold, it all becomes clearer.
Even though gold bullion coins are valued according to their gold content, and they trade at almost the world gold price, smaller purchase amounts will cost a premium of up to 8 percent. Buying larger quantities is a better value, but the premium is still around 4 percent, and if you sell gold bullion coins back to a retailer, you are likely to lose another 4 to 8 percent.
If you want to buy gold bars, you can do so from a private supplier, but you will have to pay similar costs to those for gold bullion coins. Gold bullion bars come in many different sizes, weighing anything from a few grams up to 3 kilograms. The larger bars are sometimes accepted in Zurich and New York in professional bullion markets, but strict controls are applied to maintain the integrity of the gold bullion. However, London is the biggest marketplace in the world for physical gold bullion, so these other locations charge a premium.
The London market uses a standard gold bullion bar which is around 11 inches long and weighs 400 troy ounces. This London Good Delivery gold bullion bar is always stamped on the larger face with the weight, purity, and manufacturer's name. Gold bullion is soft, so the gold bars are frequently scratched and misshapen, unlike the mock gold bullion bars shown in photographs or films. Despite this, London Gold Delivery bars are the most important in the world, with physical trading within London being the worldwide standard.
Gold bullion traded on the London spot market has strict guidelines that make it the world standard. Bars must be a standard shape and weight. They must have been accurately assayed and stamped, have a purity of at least 99.5 percent, and the manufacturer must be on a list of approved refiners.
Although London Good Delivery bullion is the cheapest form of gold to trade and own, it is not easily accessible to buyers from the private market. The large bars are very expensive, and the approved vaults that store the gold do not deal with the general public. However, you can still invest in gold through OneGold.
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- Create a Free Account at OneGold.com
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A guide to investing in gold.
A guide to investing in silver.
A guide to investing in platinum.