How to Invest in Gold


There are many ways to invest in Gold, the simplest and most available is to buy jewellery or coins. Although at a quick look, gold bars may often seem the cheapest way to invest in physical gold but experts point out that there might be some downsides of doing so. Often the price for a single one ounce bar is the same as for a single one ounce krugerrand.

Typically when buying gold there is key information you must consider these are the tolerance allowed in their purity, the minimum being 99.5% pure. Most ‘small’ bars are 99.99% purity. Because of these issues, 400 ounce bars are typically only bought and sold between governments, central banks, and major bullion banks.For larger investors, it may be worth considering a number of key companies who can not only sell you the gold but then to look after the gold on your behalf. They are usually quoted as being 400 ounce, or 12.5 kilo, bars and there is a large tolerance in their permissible weight range, from 350 to 430 ounces.

While it is true that larger bars, such as one kilo ones sell for a lower percentage premium than krugerrands, they are not as easy to resell. Only a specialist gold dealer is likely to give you a good purchase price for gold bars, and then often with less enthusiasm than for krugerrands, sovereigns, or other highly marketable coins, this can ultimately restrict your choice of buyer, and most dealers would expect to pay slightly less for gold bars than for coins, expressed as a percentage of their intrinsic gold value. If you buy large bars such as one kilo, it is not going to be very convenient if you decide to sell a portion of it.

If you are a first time investor in gold then we would recommend that you purchase krugerrands and sovereigns. As typically it is easier to resell the gold if you wish to sell the gold in the future.