Buying Gold Bars

gold barsMany people who want to own gold choose coins or even jewellery (which they can enjoy wearing), gold certificates, or might even buy shares in gold mining companies.

But serious gold owners often look at gold bars, the kind of things you’ll have seen in war movies or James Bond films, actual bullion bars that can weight up to a kilo or more. But how do you actually

Buy gold bars?

When you consider that a gold bar can cost in excess of £30,000 (depending on the price of gold of course) then you can see that it’s really serious players who opt for this form of gold ownership.

First of all there is the initial outlay of tens of thousands of pounds, then there is the issue of actually storing the gold – it’s not something you’re just going to stick in your shoe cupboard.

With something of such value many buyers will pay the company they buy from to store it securely for them, but other who might want to be in possession of their gold bar may have their own safe or other storage facility.

While gold coins are preferred by many gold owners for their liquidity and portability, a level of liquidity can be achieved with bars, since they come in many different weights and sizes with something actually to suit all budgets.

One long term advantage with gold coins is that they have been minted by governments and so have always had the seal of trust and have always contained a high level of pure gold, but bars, which were produced by banks often varied in their purity, which created problems with standardisation of prices.

It wasn’t until the 20th Century that strict guidelines were created to ensure that gold bars were always to the same specs and contained the same purity of gold.

Buyers of gold bullion bars want to buy from suppliers were they know that the quality of the metal they are buying is guaranteed. This requires using trusted dealers and international banks, and merchant banks including Credit Suisse.

Now bullion bars are available in different sizes to suit the needs of customers, with bars being available from a few grams to several kilos in size.

If you do decide to buy gold bullion bars then you need to look out for the recognised names as mentioned above, and of course always buy from a reputable dealer.

There will be a small percentage difference between the price you buy at and the price dealers will buy from you at, it’s usually no more than a percent or 2, this represents their margin, remember that all businesses do need to make a profit!