Thursday, 6 December 2012

Investment Protection: Things to Consider in Buying Gold Bars

Protecting Your Investments
Gold bars and gold coins also considered as gold bullion have various sizes, weights and types. This article focuses solely on buying gold bars and protecting them.

1) Ch
eck Your Purpose In Buying Gold Bars
Gold coins, nuggets, jewelry, etc. are purchased for their innate quality. However, gold bars are bought mainly for investment purposes as a means of protection from inflation and diversification of an investor's portfolio to avoid a total loss. There are also some risks present in buying gold bars. That is why in order to minimize these risks, it is important to observe the dos and don'ts.

2) Check The Trend Of Gold Prices
Generally the price of gold keeps increasing. By the end of 2003, the spot price of gold was $414.80 a troy ounce. By the end of the first quarter of 2008, the spot price of gold was approximately $930 a troy ounce- more than double the price 5 years ago. The price increase may sound promising to you but you should bear in mind its volatility. Also, past performance of the promising increase in gold prices does not guarantee the same future results as the price is also based on the supply and demand. Click here to find out the price of gold currently.

3) Consider Gold's Purity and Weight
To determine a gold bar two factors should be considered such as its weight and purity. Its purity varies depending on the mint in which the average purity amounts to 99.98% but once it is a government-backed gold bar it can reach as high as 99.99% pure. As to its weight, its size vary ranging from about a gram up to 440 grams. It is wise to buy the largest gold bar if your budget can afford since larger bars come with an approximately lower margin than the smaller bars, so you will get closer to the actual value of the gold.

4) Carefully Check The Gold Bar Standards
Each gold bar has the following four marks which you should check carefully. First, is its refiner's mark otherwise known as the goldsmith's brand name. Second is its gross weight in troy ounces. Third is its purity percentage. Fourth is its serial number. When buying online, this can be hard to identify, so choose a reputable company.

If you buy gold bars online, make sure that you receive your purchase through registered insured mail for the full value of your gold or through other insured delivery processes. Also, purchases made in the hundreds of thousands of dollars should be delivered through an armored car delivery service.

5) Look For A Gold Bar Dealer
You should consider carefully the dealer before buying your gold bar. Look for a reliable and trustworthy dealer. It is the dealer's job to prove that the gold bar has been assayed and tested and to attest that it is solid and true. When finding a reputable gold dealer, consider the number of years it has been in this business.

6) Make Sure Your Investment Is Protected
Your gold bar either big or small should be kept in a safe deposit box or a vault facility which is primarily responsible for protecting your gold bars and other precious commodities. See to it that the place where you store your gold bars is insured as well.

Many experts predict that the price of gold can increase within the next decade in which it can double or triple the price more than today making it wise to invest in gold for in the long run you will surely profit.


  1. Buying gold is a very difficult period and decision it must be taken carefully and respects all these terms that you discuss in this article,byers must pay attention, very interesting article

  2. Buying gold is a rather tricky business. Because it takes vigilance and thorough research beforehand of the market, dealer, prices, gold quality and insurance agency. Knowing the quality and weight of gold is quite helpful while buying. Some companies portray inferior quality gold as superior, so then the marking and gold testing comes in handy. We should look for the trends in the market about the prices and margins for each weight of gold bullion. Informative article, helpful in many aspects.

  3. I am most thankful for your advice! I was well on my way to purchasing a small cash of gold bars and admittedly haven't done much research. I will do further research and more then likely purchase a larger gold bar.

  4. Really a worthy one to read to know about the details of the investment in gold. Now a day, no investments are secure and so does the investing in the gold. But, if we check the price of gold for the last decade, you find that the price is quite stable and even increased in a good rate comparing other sectors. From this good article, it has become clear that the best way to invest in the gold is buying and preserving the gold bars.

  5. Wow this is very good to save your gold, lock your gold there and you gold is save! Realy good a realy liked !!!

  6. This is very dangerous time for keeping gold without protection, so this is one great way to handle it without any pressure on you. I think this is the best solution!

  7. It is indeed no joke investing in gold especially you have to spend a lot of money to be able to purchase it. Another thing is, you should be able to find a reputable and reliable dealer to purchase your gold from. Also, after buying the physical gold you have to store it in a place where gold is kept safely. However, once these things are well taken care of, you are then on your way to gaining a good sum or even a lot.

  8. Much talked issue that is the investment protection has been recently been scrutinized by the company gold guarantee. However, some says that this is a scam. Buying gold considering some points can turn out as profitable. The writer of the article has very technically mentioned all. I find the article very well understanding to those who want to invest money in the market. after reading the article I came to a decision that if I Deeside to invest I will only invest on gold.