The Benefits of Buying Small

Dear Investor,

A common misconception when it comes to investing in precious metals is that putting large sums of money into gold all at once is the only beneficial and efficient way to invest in gold. While this is a valuable option for some, and one that ABC Bullion frequently facilitates, it is often more accessible for investors to trade regularly, frequently, and in smaller amounts. Here are five reasons why it can be valuable for investors to buy small.

Flexibility

Buying precious metals in smaller denominations is one of the most flexible ways to invest. For example, having five 1oz ingots of gold allows significantly more options for selling and reinvesting. Multiple, smaller amounts of precious metals gives investors more freedom in selling one or more of their ingots based on the market or their unique investing needs. Conversely, one 5oz bar is bought all at once, increasing the immediate expense, while also being limiting as it can only be sold as one piece.

Saleability

Smaller amounts of gold are also very easily sold to a variety of vendors, both related and unrelated to investing and trading. For example, small amounts of precious metals can be sold to jewellers for jewellery manufacturing, artists who work with precious metals or anyone interested in owning or using precious metals. For many, large bars of gold are too valuable and difficult to store in the workshop or small business environment; for example, small businesses may not have the cash flow to buy a 10oz bar, therefore small amounts are often preferable.

Accessibility

For many, beginning their journey in investing in precious metals can be extremely daunting, given the sheer magnitude and value of the industry. Naturally, as purchasing an ounce or less of gold is less expensive than trading in large amounts, it is a great way to start investing in precious metals. Moreover, smaller investments made regularly and frequently allow investors to dollar-cost average, which many consider a valuable method of investing, based on their specific investment goals.

Travelling

Precious metals can be a particularly useful asset for travelling, especially gold and silver, as they are globally recognised holders of monetary value, a form of ‘universal currency.’ Moreover, smaller amounts of precious metals can be slipped into secure locations while travelling, such as hotel safes and valuables; travellers can even keep their precious metals on them while sightseeing for safekeeping, without it being too heavy. Smaller amounts can even be kept in your wallet!

Gifting

Finally, smaller amounts of gold make for excellent, useful and generous gifts to friends, family and more for holidays and celebrations. For many, precious metals have a strong connection to culture, and giving small amounts of gold as a present to someone can serve as a thoughtful and magnanimous gesture of goodwill and prosperity for the giftee.

Buying smaller amounts of precious metals should not be overlooked as an investment strategy, because of the additional flexibility, accessibility, and ease of selling that it can offer to investors.
ABC Bullion's range of 1/2oz, 1oz, 2oz and 5oz Gold Cast Bars, as well as our 10g and 20g Minted Bars, are available year-round and are ready to be a diversifying asset in your investment portfolio.

Warm regards,

The ABC Bullion Team