5 Tips on How to Buy Gold Bars and Store Them

Around one in six consumers invested in gold in 2020, while a further 23 percent said they were seriously considering this option. 

With the economy still struggling and many countries in recession, more and more people are looking for safer ways to invest their money and protect their future. As a result, investing in a tangible asset such as gold bullion is an even hotter prospect than before. 

But before you rush out to buy gold bars, there are some key factors to consider, including where you plan to store your gold. Keep reading to learn more!

1. Recognize That Gold Is a Long-Term Investment 

Humankind has treasured and traded gold for thousands of years. But that doesn’t mean that investing in gold is without risks. 

With this in mind, you should only ever use non-essential savings to buy gold. This ensures that the gold you buy is all yours. It also avoids the possibility of having to pay back your credit or sell up before the price of gold rises. 

Remember, an ounce of gold will always be an ounce of gold. But the price you or someone else pays for it can fluctuate. Plan for the long term and there’s a much greater chance that you’ll be happy with your investment. 

2. Know What You’re Buying

Even if you have the money ready to go, take your time and be sure about what you’re buying and why before you commit. For example, you’ll need to learn how to identify a reputable manufacturer and the markings to expect on a legitimate gold bar. 

Without a recognizable hallmark and markings detailing the weight, purity, and other vital measures, you won’t know what you’ve bought. Failing to ensure that your bars have such markings will make it difficult to resell them. What’s more, only buying gold bars with the necessary hallmarks is the easiest way to avoid fraud. 

3. Compare Different Sizes and Weights

What many people don’t realize before buying gold bars is that there are a few different options to choose from when it comes to size and weight:

• 1-ounce gold bars – These often resemble a credit card and always weigh one troy ounce (31.107 g)
• 10-ounce gold bars – Bars of this weight typically measure 60mm by 35mm with a thickness of 8mm and a weight of 10 ounces (311.07g) 
• 1 kg gold bars – These tend to measure 80mm by 40mm and are around 18mm thick. They contain one kilogram of gold, which is equal to 32.1507 troy ounces
• 400-ounce gold bars – These gold bars are close to brick dimensions and can weigh between 350 and 430 troy ounces, equivalent to 12.4kg. But, due to their impractical size and weight, they tend to achieve the lowest resale premiums

It’s also possible to buy small gold bars weighing as little as 1 gram. But, while these are trendy in China, India, and the Middle East, they’re a poor investment since they cost as much to produce as regular-sized gold bars. 

4. Only Buy Gold Bars From Reputable Sources

Whether you decide to buy gold online or via an in-person retailer, it’s crucial to find a reputable source with as many genuine positive reviews as possible. Here are some key tips for making sure you choose well:

Recognize the Benefits of Buying Online

If you can find a trusted dealer, online retailers are often the best way to go. Since there are no added costs, shopping online for gold tends to be cheaper, as well as fast, easy, and accessible at any time. 

Double-Check Rankings and Reviews

Never trust rankings and reviews printed on the company website itself. Logos are easy to copy while reviews might be paid for or even fake. Instead, always check the name of your chosen vendor on official independent review sites such as Trustpilot. 

Be Wary of Pushy Retailers

Gold retailers can be intimidating if you’re not firm about what you want, which is another reason why it pays to do your research. Many will try to convince you to buy rare coins or expensive products that are harder to resell. In these cases, don’t be afraid to decline and leave empty-handed. 

Choose Sellers That Deliver and Repurchase 

No matter how large your order is, a good retailer shouldn’t have any trouble getting it to you within a few days. Smaller retailers with fewer customers fall behind here as they can rarely fulfill large orders and may take a week or more to deliver. You should also try to find a dealer with a repurchasing policy as they tend to offer better purchase prices. 

Consider Foreign Banks

Although you can’t buy gold bullion in US banks, it’s a different story in many banks across Europe and Asia. If you intend to pursue this route, make sure to inquire about premiums and the like first, such as whether they offer lower rates to their banking clients.  

5. Consider Where You’ll Store Your Gold Bars

Tangible assets such as gold need to be stored somewhere. Here are your best options:

• Depository (Vault Storage) – Your gold bars will be extra safe here since depositories provide a high level of security as well as insurance. One disadvantage is that you’ll only be able to access your bars during depository opening times
• Safe-Deposit Box – While this is a safe and convenient option as only you will be able to open the safe-deposit box, access is limited to bank opening hours. And, since banks don’t insure precious metals, you will have to arrange cover
• Private Safe – Keeping gold bars in a private waterproof and fireproof safe keeps them secure and means you have 24/7 access. That said, you shouldn’t tell anyone about your home safe or the gold inside, except your insurance company who will likely insist on extra cover 

Some people also choose to keep their gold bars at home in hidden locations such as a freezer. While some claim this to be convenient, it’s far from a safe or necessary option for such a long-term investment as gold. 

Your Guide to Buying and Storing Gold Bars 

As this guide shows, there are a lot of factors to consider before you buy gold bars. 

But trust us, taking your time to research sellers, weigh up different sizing options, and decide on a potential storage location will be worth it if you’re serious about investing in gold. 

Want more insights like this? Be sure to check out our other blog posts for all the latest updates!