Sunday, January 08, 2006
How to Buy Gold Bullion
How to buy gold bullion is very important to know these days as it is perhaps
the best gold you can buy.
Once upon a time the only gold one could buy were the large 400 ounce
gold bars or gold coins such as Krugerrand. Time change and nowadays
there is a tremendous variety of gold bullion in the form of solid gold coins
and bars from many mints and countries.
You can now buy gold bullion bars as small as 1 gram or a 20th of a troy
ounce. Of course buying gold in such small quantities is not very practical as
the cost is so high. The mark up on tiny gold bars includes expensive
packaging, certificates and the profit margin of the mint or dealer you are
What is Gold Bullion
Gold bullion is either gold coins and bars of various types, sizes and weights.
The bars come in a variety of sizes and weights from as small as one gram
worth a few dollars to the one ounce, ten ounce, one hundred ounce and
one thousand kilogram bars as well as the traditional 400 ounce bars or
ingots used by large companies and institutions.
All gold, when bought comes at a price and a premium over the spot price
(market price), and this changes day by day. The smaller the bar or coin, the
larger the premium. There is a specific cost to fabricating gold and that does
not change very much. Of course the fabrication costs for gold cons is much
higher than bars as they are struck to a much better finish. They are
therefore much more expensive to purchase and not really ideal for a gold
What is the best Gold Bullion to Buy
When buying gold bullion it is better to buy the largest size bars you can
afford. The larger the gold bars you buy are, the closer to the actual value of
gold you are likely to get for your money, with a proportionately less margin
to pay. There will always be some margin to pay but this can be reduced
down to virtually 1 or 2 percent with the larger bars. Of course you do have a
rising scale of storage and security to attend to so there is a balance to be
If you can afford the 400 ounce bars then it is likely you can afford the
transport and storage fees associated with such a large value of gold. Most
bars of such size are generally kept in bank vaults. If you purchase a 1 gram
bar then you will likely pay twice the value of the actual gold. However your
security or storage problems will be minor. It will fit in your pocket or could be
hidden in your house and virtually impossible to find.
How to Buy Gold Bullion
Basically it starts with, how much are you going to spend? Then you can
check out the various dealers and mints to see what is on offer. Some things
to keep in mind are:
Pick an established dealer or mint. It is not recommended you purchase off
eBay unless you know the dealer is established and has an excellent
feedback record a mile long. The Perth Mint is an excellent place to
purchase Australian gold bullion.
Get the current value of gold per ounce or gram in USD. This is the standard
used. Compare this to the price of the bullion bars on offer.
Pick that bar or those bars that more closely match your spending budget
and offer the lowest margins.
Ask yourself, "do you really need a certificate?" This is valuable if you later
need or want to resell the bar. But, with the smaller bars, unless you are
prepared to hold onto it for some considerable time, you are unlikely to get
your money back due to the margin you have to pay unless the value of gold
Once you have chosen what you want, you simply pay for the bar and await
its delivery. Most people collect gold bullion as a way if preserving or
increasing their asset base. Some collect it just as a rewarding hobby.
Whatever your reason, if you are thinking you would like to buy gold then the
above information will assist you to understand how to buy gold
bullion..Team Eurobrand Inc.