Why Invest in a 1g Gold Bar: A Comprehensive Guide

When it comes to gold bars, the 1g gold bar may not seem as extravagant as the heftier 100g or even 1kg bars, but these small bars offer a lot of benefits. They’re typically the smallest size of gold bar you can purchase, giving precious metals investors an accessible entry point into the gold market, and like other forms of gold, they’re a reliable and tangible store of value.

In this article, we share what you need to know about investing in 1g gold bars, including the costs involved, the benefits, how 1g gold bars compare to other sizes, and things to know before you buy.

Why invest in gold?

First thing’s first – why should you invest your money in gold? Gold has long been considered a safe and reliable way to protect your wealth. Here are some reasons why:

It’s a safe way to store your money

Gold is often called a ‘safe haven’ asset because it tends to hold its value when other investments, like stocks or currencies, depreciate. During periods of market stress or financial crises, investors often move their money into gold to reduce risk.

This is because, unlike stocks or bonds, gold has intrinsic value. It’s a physical asset that doesn’t rely on a company’s performance or government policy, and its value is enduring.

Hedge against inflation

When inflation rises, the purchasing power of traditional currencies tends to decline. This means the same amount of money buys less over time. Gold, however, has historically performed well during periods of inflation. It often maintains or even increases in value when the costs of goods and services go up, making it an excellent way to preserve your purchasing power.

Read More: Exploring the Role of Gold as an Effective Hedge Against Inflation

Diversify against risk

Gold tends to have an inverse relationship with other asset classes like stocks or bonds, which means it doesn’t always move in the same direction. This makes it an effective way to diversify your investment portfolio and reduce overall risk. If you hold gold alongside traditional investments, you’ll be less exposed to sharp declines in any one market.

Many financial experts suggest holding 5% to 10% of your investments in gold to provide diversification, stability, and protection during economic uncertainty.

See: How Much Gold Should I Own?

What is a 1g gold bar?

A 1g gold bar is a small piece of gold bullion that weighs exactly one gram or 0.032 troy ounces. It’s usually made from 24-carat gold, meaning it’s 99.9% pure.

1g gold bars are typically the smallest size of gold bar you can buy, although it’s possible to find smaller sizes out there from lesser-known manufacturers. Despite their small size, they’re still made from real investment-grade gold and offer all the same benefits of investing in larger bars, only at a more accessible price point.

Gold bars are manufactured by well-known refineries like PAMP Suisse, Valcambi, Argor Heraeus, and others. They sometimes feature intricate designs and usually come in some form of secure, tamper-roof packaging and a certificate of authenticity.

Most 1g gold bars are minted, which means they’re cut from gold sheets and stamped with identifying marks like weight, purity, and a unique serial number. Larger gold bars (usually 100g or more) are often cast, which involves pouring molten gold into a mould.

Read More: Pros and Cons of Buying Gold Bars vs Gold Coins

How much does a 1g gold bar cost?

The price of a 1-gram gold bar changes regularly depending on gold’s spot price, which is the current global price for one troy ounce of gold.

To estimate the base value of a 1g gold bar, you can find the current gold spot price and divide it by 31.1035 (the number of grams in a troy ounce). For example, if gold is trading at $3,352.73, then the melt value of one gram would be about $107.8.

However, the actual retail price you pay for a 1g gold bar is higher than the melt value. This price difference, called the premium, accounts for the additional costs of minting, packaging, shipping, and dealer margins. Premiums for 1g gold bars are typically higher per gram than larger bars because of higher production costs. You might pay an additional $18 to $35 in premium depending on the brand of gold bar you purchase and the seller.

Gold bullion bars from respected refineries, like PAMP Suisse, Valcambi, or The Perth Mint, usually cost more because they come with assay certificates, tamper-evident packaging, and global recognition that makes resale easier.

Some precious metals dealers might sell damaged, repackaged, or unverified bars. These might come at a discount compared to gold bars that are sold sealed in their original packaging.

Benefits of buying a 1g gold bar

There are many benefits to investing in a 1g gold bar, even if it doesn’t look or sound as flashy as a larger bullion bar. Here are some advantages:

Affordability and accessibility

One of the biggest benefits of 1g gold bars is that they’re one of the most affordable ways to invest in physical gold. Because they’re so small, 1g gold bars cost a lot less than larger bars or even gold coins, making them ideal for beginners or those who want to enter the precious metals market without a large upfront investment.

This accessibility lowers the barrier to entry and allows more people to own a tangible asset that holds long-term value. It also gives beginner investors an opportunity to learn how the gold market works without having to commit too much capital at once.

Liquidity and flexibility

Smaller gold bars are generally easier to sell or trade compared to larger bars. Because they’re more affordable than other gold bullion items, like coins or larger bars, there’s usually more demand from investors and dealers. This means it’s easier to convert them into cash when needed.

Value preservation

Like other gold investments, 1g gold bars are a great store of value. Even though they’re small, they still benefit from gold’s role as a store of wealth and can be a practical way to protect against inflation and currency devaluation.

Fractional ownership

Another big advantage of 1g gold bars is that they provide fractional ownership. If an investor held a larger bar and wanted to sell some of their holdings, they’d have to liquidate the entire bar. But if they were to hold a bunch of smaller, 1g gold bars instead, they could only sell what they needed and keep the rest in reserve.

See: What is the Cheapest Way to Buy Gold?

1g gold bars vs other sizes

Gold bars come in a range of different sizes to suit different types of investors.

1g to 10g gold bars

These smaller bars are perfect for beginners, casual collectors, and anyone who wants to slowly build up their holdings over time. They’re affordable, easy to store, and make great gifts. Many first time investors choose to buy gold bars in this size range because they make it easy to enter the gold market without taking on too much risk.

Read: Giving Gold as a Gift

50g to 100g gold bars

These ‘mid-range’ gold bars offer a good balance between affordability and value. They cost more than smaller bars upfront, but they usually come with smaller premiums per gram compared to smaller bars. That means more of your money goes towards actual gold content, allowing you to maximise your investment.

These bars are a good option for investors wanting to grow their position quickly or add gold to a retirement fund.

250 to 500g gold bars

This size range of gold bars is the best for anyone who wants to make a bulk purchase of gold, offering more value per gram with lower premiums. 250 to 500g gold bars are often purchased by investors with a long-term strategy who want to hold significant amounts of gold without dealing with multiple small bars.

Bars in this size range can be more difficult when it comes time to sell, however, and investors will likely need to sell the whole bar rather than a portion.

1kg gold bars

1kg gold bars are often reserved for high-net-worth individuals or institutional investors. They offer the best value in terms of price per gram, with the lowest premiums, but also require a significant amount of upfront capital. These gold bars weigh roughly 32 troy ounces – in other words, they cost around 32 times the spot price of gold.

Learn More: What are the Types of Gold Bars?

Things to know when buying a 1g gold bar

If you’re thinking about investing in a 1g gold bar, here are some things to know beforehand:

Where to buy 1g gold bars

You can buy 1g gold bars from many different places, including certain jewellers, banks, and specialist bullion dealers. These days, it’s often more affordable to purchase gold bullion online through trusted dealers like StoneXBullion. Since online dealers have lower overheads, they tend to offer more competitive pricing and a wider range of brands to choose from.

The thought of buying gold bullion online might seem scary to some people, but it’s one of the most common ways people buy gold. Just make sure the dealer is reputable, trusted, and has a strong history of positive customer reviews. If they’re an LBMA affiliate member, then that’s an even better sign.

Read our article to learn more about buying bullion by post: Buying Bullion by Post: Guide to Ordering Bullion by Mail.

How pricing works

As mentioned earlier, gold prices can fluctuate up and down quickly. When demand for gold is high, like in uncertain economic times, premiums on 1g gold bars can go up significantly. This means you might pay more above the spot price than usual.

Again, smaller bars tend to have higher premiums than larger ones because they cost more to produce per gram. So even though they’re more affordable upfront, they aren’t always the most cost-effective option gram for gram.

Storage considerations

Many people don’t think about storage when it comes to smaller bars, but they’re actually tiny and can be easy to misplace, so storage is really important. Keep your gold somewhere safe, dry, and secure, like at home in a safe or in a bank safety deposit box. Some investors also use professional vaulting services for extra piece of mind, but these come with additional costs.

Either way, make sure you store the gold bar in its original packaging to keep it in good condition and preserve its resale value.

Buy 1g gold bars today

If you’re ready to start growing your wealth with the enduring value of gold, you’re in the right place. At StoneXBullion, we stock a wide range of gold bars in various sizes, from 1g gold bars all the way up to larger 1 kg gold bars. We're one of Europe's most trusted bullion dealers and an affiliate member of the London Bullion Market Association, a sign of trust and good trading practices.

Browse our range and you’ll find gold bullion coins and bars from the world’s most prestigious mints and refineries, including The Royal Mint, PAMP Suisse, Valcambi, and Argor Heraeus – all at competitive prices that are updated each minute.

View our collection and start investing in gold today.