How And Where To Buy Gold Bars Locally? ( A Complete Guide)
Last updated on June 1st, 2023 at 10:43 pm
Gold bars are an excellent way to invest in precious metals because they hold value well and are quite easy to store and resell. That's why it is necessary to understand how and where to buy gold bars locally. Though buying online can save you a substantial amount of money, there are other options available if you don't want to deal with shipping.
This comprehensive guide will teach you where and how to buy gold bars and how to find the most reputable local dealers in your area so that you can start to grow your wealth right away!
The prime reason investors prefer gold bars over gold coins is that gold coins often carry a bigger premium than gold bullion bars. The design of coins is usually more elaborate and contains cultural and symbolic aspects of the nation that issued them, resulting in higher labor and machining costs. Coins can be more attractive, but you'll have to pay more for them. The more labor that goes into the bullion, the higher the price. For these reasons, a gold bar is less costly than a gold coin.
Another benefit of gold bars is that they are easy to store. A gold bar occupies less space than the equivalent weight in coins. Originally, bars were designed to be easily stored. Purchasing gold bars does not undermine any of gold's primary benefits: they are still liquid, private, portable, and will last forever.
Gold bars are also utilized by investors as a reserve currency, a personal asset, and a business financing tool. As an investor, gold bars may be the ideal alternative if you are hoping to accumulate more pure gold content without regard for numismatic value.
The Market Value Of Gold Bars
A 1-ounce gold bar is currently worth more than $1,800. Bear in mind that gold prices often change daily, even though the average price has been rising for decades. Intelligent investors adequately research on the day they want to invest in gold bars or on the day they want to invest in the stock market.
Things To Keep In Mind Before Buying Physical Gold Bars
Prices fluctuate by day, hour, and minute, depending on a variety of financial circumstances. That's why it is necessary for you as a smart investor to carry out deep research before investing in gold bars or the stock market.
Purchasing gold bars at the lowest feasible price should be your target to save money for the future. Gold bars have global value and can be utilized to develop a strong investment portfolio. The idea is to buy gold while prices are low and sell some of it when prices are high.
Other factors to consider before purchasing gold bars are the various brands and sizes available. And also how to recognize a good reputable dealer to buy from. All of these will be discussed more in this article. Read on!
What Is The Best Size Of Gold Bars To Buy?
What size of gold bars to buy is one of the first choices you'll need to make. There are various sizes and weights of gold bars ranging from one gram to 400 ounces. Exchanges, central banks, and ETFs purchase these bigger sizes( 400 ounces bars).
Generally speaking, the premium decreases with increasing bar size( a larger bar is a cheaper bar). This is because the cost of production of a kilo of gold bar is less expensive than a gold bar weighing an ounce. But you don't necessarily have to buy the larger bars because ...
- Larger gold bars have fewer prospective buyers. How many investors do you think can easily afford to purchase larger bars like 100 ounces bars? Not much. But smaller-sized bars attract a larger number of clients.
- Smaller bars can be divided more easily than larger ones. Selling a large bar is the equivalent of liquidating a major investment. Selling many smaller bars makes it more feasible to exchange the precise amount of gold for the precise amount of money you need.
- Counterfeiters are more prone to target larger bars because they’re worth a lot more. (To avoid buying fakes, work with a reputable gold merchant that obtains their supplies directly from mints and refineries of precious metals.)
- It is more likely that a larger bar will need an assay before it can be sold. An assay will increase your costs, be kind of tedious, and causes a delay in your payment.
* An Assay is the process of evaluating a substance to ascertain its composition or quality.
Bottom line: Smaller gold bars have greater premiums, but they are still pretty affordable. Plus, they are easier to sell because they have a greater pool of prospective buyers. Likewise, if you opt for the larger bars you enjoy a lower premium compared to smaller bars but you get to miss out on other benefits.
What Is The Most Popular Size Of Gold Bar Purchased?
The 1 oz gold bar is by far the most popular size of the gold bar being bought. And the reason is that a 1-ounce gold bar offers the best value in terms of lesser premium over spot price with great resale ability. The price of a 1-ounce bar is not exorbitant. So, if you purchase several ounces of gold, you can sell them in tranches later.
What Are The Safest Gold Bar Brands To Buy?
When it comes to brands, we strongly advise you to choose gold bars from refiners that are well-known and respected in the precious metals industry. Their gold bars are of high quality with proper stamping required for pure gold.
You can sell gold bars that have the appropriate stampings from recognized refiners almost everywhere in the world. They are faster to liquidate. Although their bars could cost a little bit more than those of less-known mints, they also sell for a greater price when they are sold.
Bear in mind that some gold bars from some private mints around the world may not have all the proper stampings a pure gold should have. And this might mean that the gold bar is not pure or is of low quality. You must understand how to verify that your gold is genuine otherwise a potential buyer will likely request an assay.
Here are a few well-known and trusted brands in the United States and other countries:
- PAMP Suisse
- Scottsdale Mint
- Sovereign government mints like ...
- The British Royal Mint
- The Australian Perth Mint
- The Canadian Royal Mint
PAMP Suisse
One of the most notable Swiss manufacturers in the world. They produce gold bars in a range of sizes, and the Lady Fortuna logo is well-known among investors all over the world as a symbol of superior quality.
Scottsdale Mint
This Arizona-based American Mint is a major producer in the US and around the world. Their products feature a regal crowned lion head as their trademark and are sealed in a Certi-Lock assay, a cutting-edge technology that guarantees the authenticity of the bar.
Sovereign Government Mints
These refineries, which are managed by the government, also create gold and silver bars as well as gold and silver coins. These bullion products are being produced by the British Royal Mint, the Canadian Royal Mint, and the Australian Perth Mint. They also tend to be more liquid and sought-after than gold bars from less well-known private mints since they are backed by the name and authority of a sovereign country.
Different Places To Buy A Gold Bar
Local dealers, banks, and trustworthy online dealers all sell gold bars. Each dealer charges a price that varies greatly well over the spot prices of bullion products.
Local dealers would likely charge greater premiums for their items to maintain a profit because they often have fewer customers and more maintenance expenses. However, due to a wider customer base and greater demand, online dealers normally offer lower prices.
Purchasing your gold bars from a trustworthy dealer is arguably the most crucial action you can take. A reliable dealer would provide you with excellent advice, point you in the direction of the best items to suit your needs, and help you avoid mistakes.
Check these factors to ensure you are going with a reliable dealer.
- They must have a good customer review coupled with a good rating on any of the trusted customer reviews and complaint agencies like Trustpilot.
- They should have a verifiable website or location.
- They should have a large variety of products for you to select from
- They should have a credible and fair buyback policy. This is very crucial in case you do not have a ready buyer to buy when you are ready to sell, you will be able to resell your gold back to the dealer at a good rate.
- Lastly, they should have numerous forms of payment methods available. The majority of dealers accept checks or cash if you are buying from a local shop. Apart from Credit cards and bank wires some shops and online stores now accept payments using PayPal, Bitcoin, and other digital methods.
How To Buy Your Gold Bar
Buying physical gold bars isn't as difficult as it seems. Here are a few useful tips to chew;
Prepare for the purchase (Buying gold bars at the right time )
The spot prices of gold vary daily, and that is why, when you are planning to buy your gold bar, you should be on the lookout for the gold market to know the current rate of gold in the market. Astute investors conduct deep research before investing in the gold market so that they can enter the market at the perfect time and buy gold bars at the lowest feasible price.
However, the spot price is only a starting point. Local dealers will charge a bigger premium above the spot price than online dealers, and this will eventually determine the product's total price.
Estimate the size of your investment.
Calculate how much you truly want to invest in pure gold bars once you've identified the best time to buy.
There are no general guidelines for allocating a certain percentage of your wealth to any asset. Your financial goals and capacity will determine that.
Experts often advise investing between 10 and 15 percent of your financial portfolio in gold.
Select your products.
The most common size for individual purchases is 1 troy ounce.999 pure gold. The premiums on larger bullion bars, like those weighing 5 troy ounces or even 1 kg, are lower, but buying more smaller gold bars, like those weighing 1 to 10 grams, can help make up for that.
Research and find a reliable dealer to buy from.
Extra tip: Once you find a reliable local dealer, contact them and make an appointment for an in-person meeting so that they can take you through the steps involved in buying gold locally.
Conclusion on how and where to buy gold bars locally
Gold bars are an excellent long-term investment. As with any investment, drastic caution is needed. You will lose money if you chose the wrong dealer to buy gold bullion from. Therefore, do a comprehensive research before making any purchases.
Simply put, the gold spot price is the present market price for gold at a given time. The spot price will change throughout the day, sometimes even minute-by-minute, based on derivatives that are traded on marketplaces like COMEX, NYMEX, and LBMA.
You should buy your gold bars from online licensed dealers. Search for gold bars on trustworthy retail websites like the American Precious Metals Exchange (APMEX), JM Bullion, GoldBroker, and Wholesale Coins Direct. Choose the gold bars you want to buy based on weight, quantity, and pricing.
The truth is that many banks do not offer gold for sale. Those who do frequently specialize in selling gold coins. You can contact a bank to inquire if they sell gold bars (for security concerns, it might or might not be publicly displayed on their website.).
However, there are no laws that specifically mandate that precious metal acquisitions be reported. But if more than $10,000 is paid in cash, the transaction is referred to as a "cash reporting transaction." The government wants to know about the cash, not the gold.