ABC Gold Bar Buying Guide

17 May 2022

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Dear Investor,

Thinking about investing in gold? Wise choice.

To help make the process easier and to ensure you’re purchasing the highest quality gold, here’s a comprehensive guide to buying gold bars.

Understand why it is a good idea to invest in gold bars
Consider the best time to invest in gold
Know what to look for when buying gold bars to ensure the highest quality
Discover how to find the right gold seller with a solid reputation and track record
Recognise the benefits of buying gold bars online

Why buy gold bars?

Gold could be a smart choice if you wish to invest in something that will hold its value despite economic fluctuations. It’s no wonder that the demand for gold often soars when the economy takes a turn for the worse. So, if you are in search of a safer investment with high liquidity that you can add to your financial portfolio at any time, gold is a great asset to consider.

The good news is that contrary to what many people might think, you don’t need a lot of money to invest in gold, and there are options for investors of all levels. For example, individuals who are new to this type of investment, as well as those who are starting off with a lower budget, could turn to small gold bars, such as those that weigh 20 grams or less. For this reason, gold is accessible and practical for all budgets, and gold bars are an easy way to get yourself into the market even if you have never invested in gold before.

Gold bars, which are also referred to as bullion, are really popular, and for good reason. They are produced by minting companies around the world, so you have the option of purchasing gold from within your own country or from abroad. And there are two types of gold bars: cast and minted.

Cast bars are created using molds that ensure proper weight and size, and liquefied gold is poured into the molds. The end product is a bar that is rougher, and there might only be a basic engraving applied in order to provide details about the bar. With this type of gold bar, irregularities are the norm, so no two bars will be alike. And because the process of creating cast bars is faster and more affordable, you can typically purchase these bars at lower prices.

Minted bars, on the other hand, are shiny and clean looking, with no irregularities, so they’re even more popular amongst investors. They have a perfect finish, making the production process longer and the bars more expensive. And these bars may even feature artful designs that make them all the more attractive. To produce these bars, manufacturers will make a longer strip of gold during casting and then cut it down into the bars so that there aren’t any blemishes. Bars are inspected, cleaned, polished, and dried.

A reputable mint must be LBMA (London Bullion Market Association) accredited and, when purchasing from a reputable mint, your gold bar may even be placed in tamper-evident packaging, and it will feature the logo for that mint, along with a serial number and the weight of the gold, as these help to authenticate the gold and its worth. Plus, a reputable mint might also provide a certificate of purity, which is also referred to as an assay card, to further prove the gold’s quality.

When is the best time to buy gold?

You can buy gold whenever you are ready, but experts recommend making the investment when, economically, things are rather quiet. That’s because, during times of financial crisis, the demand for gold could become so high that mints find it difficult to fulfil that demand. Think of the economic struggles of 2007 through 2009, when the price of gold went from $695.39 USD per troy ounce to $972.35 USD per troy ounce, as an example.1

Shortages could also end up taking place when demand becomes extremely high, causing prices to increase substantially as well. So, purchasing your gold bars before an economic recession or crash happens could be a profitable way to avoid the scramble.2

What should you look for when buying gold bars?

Before purchasing your gold bars, there are a few things to consider:

What size gold bar do you want?

Because gold bars are available in various weights, think about how much gold you wish to buy. How much you buy is up to you and your budget, but just keep in mind that investors sometimes prefer several smaller gold bars instead of a large bar.

That’s because, if you ever want to sell your gold, smaller bars will give you more flexibility in terms of how much you can sell off versus how much you can keep. Also, smaller bars may even be easier to sell because a higher number of buyers might be interested in purchasing those bars.

A gold brand you can trust

Purchasing from a reputable manufacturer or refiner is important, as it will help ensure that you are buying high quality gold that will also be easy to sell in the future. Gold that has a reputable brand behind it is highly liquid and a desirable investment, as it could sell more quickly whether you want to sell it off at home or abroad.

What assurances do you have of the gold’s quality?

Before investing in gold bars from any brand, it’s a great idea to be certain that the gold will have the appropriate stamping on it to prove its worth. If a private mint doesn’t stamp its bars with the name of the refiner, the gold’s purity and weight, and its registration number, it might be an indication that the gold isn’t as pure as the seller claims.

How can you be sure that you’re purchasing gold from a reputable source?

To figure out if the gold dealer that you are purchasing from is trustworthy, you could start by researching the brand online. Major accreditations like LBMA and Singapore Bullion Market Association don’t come easy, so the number and status of accreditations definitely counts.

Check the company’s history in the industry, its customer ratings, and its buyback policy. Determine how long they have been in business for, and if they have been able to satisfy their customers to keep them coming back for more.

Why is a buy back policy important?

A buy back policy gives you the assurance that, if you choose to sell your gold back to the company, they will be willing to buy it from you. While you could certainly find other gold dealers to sell to, knowing that your original dealer is available might help you make the sale more quickly and easily, and at the best price as well.

At ABC Bullion, we offer a buy back policy so you can sell us your gold. Just call us on 1300 361 261 to talk to an Account Executive who will help you with the buy back of your gold holdings.

If you live near one of our offices, you could bring the gold to us, and an Account Executive will give you the buy back price based upon the current spot price. Our buy back pricing is updated every 5 minutes to reflect the most accurate price for gold at the time.

Where can you buy gold bars?

When it comes to where you can buy gold bars, there are several options available.

Before making a purchase from other dealers:

Compare dealers in terms of the price of their gold and what payment methods they accept.
Factor in additional costs like insurance, shipping costs, bank wire fees, credit card fees, and commission.
Evaluate customer service, buyback policy, speed of delivery, and ordering system.
Many investors prefer to purchase from non-government affiliated bullion dealers and refiners. ABC Bullion is Australia’s only independent LBMA accredited bullion dealer.

Note: if you think that you should buy gold bars from a bank, consider that your bank might not allow you to take the physical gold home with you. Instead, they might require that you keep the gold in their vault or in a third-party storage facility. Also, although some foreign banks might have gold bars up for sale, the gold may not be as pure as purchasing from a refiner.

Buying gold online

One of the most convenient ways to purchase high quality gold bars is by shopping online. You could place your orders quickly and easily at any time, and you could even lock in the market price that works for you by buying when it is most advantageous for you to do so. Rather than having to search out a local gold seller, you could invest in gold from the comfort of your own home and from the most reputable refiners, regardless of where they are located.

At ABC Bullion, our gold comes from Australia’s only independent LBMA accredited refinery ABC Refinery. All of our gold bars are stamped with our hallmark, so you’ll know that you are purchasing the highest quality gold. Through our online site, we can help you both buy and sell your gold bars 24/7, and our team of experienced experts are available to help you invest in gold, whether you are a seasoned pro or you are just getting started.

If you have questions, our staff will help you get the answers that will allow you to make the smartest investment choices. Then, you could even track the value of your portfolio’s gold online, as well as receive daily email updates so you can keep an eye on what the market is doing.

Ultimately, if your aim is to protect your financial stability against everything from deflation and inflation, to currency devaluation and stock market downturns, buying gold bars and adding them to your investment portfolio could give you much-needed peace of mind. And with the right strategy, you can rest assured that you are purchasing high quality gold from a reputable source.

Warm regards,

The ABC Bullion Team

Sources:
1.      https://www.statista.com/statistics/268027/change-in-gold-price-since-1990/
2.      http://www.usagold.com/cpm/goldhelp.html
3.      https://goldsilver.com/blog/how-to-buy-gold-bars/
4.      http://www.ebay.com/gds/Your-Guide-to-Buying-Gold-Bars-/10000000178722438/g.html
5.      https://pocketsense.com/can-buy-gold-bars-bank-5507139.html
6.      https://www.cbsnews.com/news/the-5-worst-ways-to-buy-gold/
7.       https://invest.usgoldbureau.com/news/types-of-gold-bars/