Apr 2012


Apr 2012

Gold Bars

By StoneX Bullion

Gold Bars Investment

Gold bars are mainly addressed to individuals that prefer investing into physical gold, the other alternative belonging to this category are gold coins. Bars are an adequate form of gold investment especially for those who dispose of substantial funds. This is true because of two main reasons. If an individual decides to invest into bars, he can obtain them from any dealer either online or offline or from a bank.

The first reason stems from comparing bars with gold coins, taking into consideration as criteria the quantity which can be bought with a certain amount of money. It is obvious that the quantity of coins which can be bought is considerably higher than that of gold bars purchased with the same amount of money.

The second reason for which bars made out of gold require more substantial funds is that the substantial the quantity of gold bars bought the smaller the premium is for this means of investment. It is also a rule by which dealers guide themselves in operating transactions on the gold spot market. That is why, on the spot market, dealers do not transact with private individuals.

When investing into gold bars a step which should not be skipped, is that of consulting a live gold chart in order to find the most appropriate price, which will allow the investor to make a profit in the near or distant future.

Gold Bars Characteristics

One great quality of gold bars is the fact that they are exempt from VAT, therefore no such tax has to be paid by investors for this kind of investment. It is an economic principal that also applies to gold coins, making these two forms very sought after by investors.

Another characteristic that makes investors and people in general turn their attention towards gold bars is the purity of gold from which are manufactured. We are talking about a purity that starts from 99.5%, which is quite impressive.

Even though this form of investing into gold is produced in different shapes and sizes, the most preferred weight for trading is that of 1000 grams, also known as the kilobars. Gold bars are available in two shapes: brick shape which is chosen mostly by European investors and flat shape. The kilobars are very used in transfers on the spot market by both bullion traders and banks.

Amazing Gold Bars

There are some impressive gold bars on the market when it comes to their dimensions. However, the most renowned one has been minted in 2005 by the Mitsubishi Materials Corporation. At that time it was valued at US $3,684,000.

In order to understand that we are talking about an incredible amount of money when it comes to gold bars, you should remember that the price of gold started to considerably increase beginning in 2007. When the gold price was at its peak, in 2011, this gold bar weighing 250 kg (551 pounds) had an approximate value of US $15.3 million.

From this example we can easily notice how much the value of gold bars has increased in general and why they are so profitable to invest in.