When you are looking into buying gold, there are plenty of types and options. The two major ones are paper gold and physical gold. Physical gold is just that, cold, hard gold. Paper gold is any sort of paper certificate you might be awarded to show that you own "x" amount of gold that is sitting in some storage place somewhere. For obvious reasons, physical gold provides a deeper sense of security, especially in the case of full economic collapse.
Physical gold also comes in many forms. There is jewelry, which can sometimes be quite pure (especially if it is more antique), however much more popular for investors, there are bullion coins and bullion bars. For the purpose of this article we will focus on gold bullion bars, and why they tend to be preferable.
Gold bars are a specific quantity of refined metallic gold, and must be created under certain guidelines and to fit within some standard conditions of manufacture, including labeling and record-keeping. Gold bars are created with two different methods: as cast bars and by being minted. Minted bars are made out of large, flat, blank pieces of gold and hand cut down into certain size requirements. Cast bars, on the other hand, are made by pouring molten gold into ingot molds, which gives the bar its specific "brick-like" shape. In the case of minting or casting, markings are typically always applied to the gold, which includes vital information such as purity and weight. To be considered "real" gold, there must be between 99.5%-99.9% purity.
Gold is measure in troy ounces, where one troy ounce is equivalent to 31.1035 grams, and they are produced in standard weights, making them easier to quantify when buying or selling. Typical gold bars include the kilobar (1000 grams in mass) and the 400 troy ounce Good Delivery bar, which is the standard gold bar that is held and traded internationally by central banks and bullion dealers. These bars must be stored in recognized and secure gold bullion vaults to maintain their quality status of staying a Good Delivery bar. The kilobar is considered to be more manageable, and is also used extensively in trading and investing. When traded, the premium on these bars is quite low over the actual spot value, making it ideal for small transfers between banks and traders.
The decision to invest in gold is probably a good idea, especially if it is physical gold such as bullion bars. Just make sure to do your research and only purchase from highly reputable dealers when you are ready to invest.
Physical gold also comes in many forms. There is jewelry, which can sometimes be quite pure (especially if it is more antique), however much more popular for investors, there are bullion coins and bullion bars. For the purpose of this article we will focus on gold bullion bars, and why they tend to be preferable.
Gold bars are a specific quantity of refined metallic gold, and must be created under certain guidelines and to fit within some standard conditions of manufacture, including labeling and record-keeping. Gold bars are created with two different methods: as cast bars and by being minted. Minted bars are made out of large, flat, blank pieces of gold and hand cut down into certain size requirements. Cast bars, on the other hand, are made by pouring molten gold into ingot molds, which gives the bar its specific "brick-like" shape. In the case of minting or casting, markings are typically always applied to the gold, which includes vital information such as purity and weight. To be considered "real" gold, there must be between 99.5%-99.9% purity.
Gold is measure in troy ounces, where one troy ounce is equivalent to 31.1035 grams, and they are produced in standard weights, making them easier to quantify when buying or selling. Typical gold bars include the kilobar (1000 grams in mass) and the 400 troy ounce Good Delivery bar, which is the standard gold bar that is held and traded internationally by central banks and bullion dealers. These bars must be stored in recognized and secure gold bullion vaults to maintain their quality status of staying a Good Delivery bar. The kilobar is considered to be more manageable, and is also used extensively in trading and investing. When traded, the premium on these bars is quite low over the actual spot value, making it ideal for small transfers between banks and traders.
The decision to invest in gold is probably a good idea, especially if it is physical gold such as bullion bars. Just make sure to do your research and only purchase from highly reputable dealers when you are ready to invest.
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