You want to know how to invest in gold bullion. Investing in gold directly can be challenging, but if you understand the system, it is simple enough to buy gold you can hold in your hands.
Invest In Gold Mutual Funds
Beware mutual funds and indexes that have gold in their name but that mostly invest in companies that have something to do with gold instead of gold itself. A good option that actually invests in gold is SPDR Gold MiniShares (GLDM).
How To Buy Physical Gold Bars
Believe it or not, you can directly invest in real gold that you can hold in your own hands. If you are thinking of those big gold bricks you see in movies, that probably isn’t going to happen. Those bricks are 400 ounces. With gold prices in the $1700 per ounce range, which works out to $680,000. If you are looking to put that much money to work, contact me directly, or work with your existing financial professional.
The cost of gold bars varies depending on the current market price of gold and the size and purity of the bars. As of 2021, the price of gold was around $1,800 per ounce, but it can fluctuate significantly over time. Gold bars are typically available in a variety of sizes, ranging from 1 gram to 1 kilogram, and they are also available in different purities, with the most common being 24k, 22k, and 18k.
To calculate the cost of a gold bar, you can multiply the current market price of gold by the weight of the bar and the purity of the gold. For example, if the market price of gold is $1,800 per ounce and you are considering purchasing a 1-ounce gold bar that is 24k purity, the cost of the bar would be $1,800 * 1 ounce * 0.999 (which is the purity of 24k gold) = $1,797.
In terms of purchasing gold bars, you do not need to be a bank or institution to buy them. Gold bars can be purchased from a variety of sources, including precious metals dealers, coin shops, and online retailers. Some banks and financial institutions also sell gold bars. It is important to research and compare prices from different sources to ensure that you are getting a fair price for the gold bars you are considering purchasing.
You can buy the thin gold bars. Those are typically one-kilogram bars. One kilogram is about 32.15 oz, so $54,600. Still a lot, no?
Mostly if you want to buy actual gold that you can hold in your hands the best bet is gold coins. The dealer markup, or spread, will be higher on coins. It’s the price you pay for taking hold of gold. You’ll lose some on the sell side of the transaction as well. Canadian Maple Leaf Gold Coins and American Gold Eagle coins are widely available and are easy to buy and sell. Each coin has a face value but is worth much more based on its gold value. Each gold coin contains one ounce of gold.
Be sure to keep your gold secure. Bank safety deposit boxes are an option, or you can do like John Wick and bury them under the concrete slab of your garage floor.
Buying gold coins is much easier, if not as impressive. The upside of gold coins it the that they are held to very strict standards, so if you buy a Looney, an American Eagle Gold Coin, or a South African krugerand, you can be sure that you are getting what you paid for. Always keep in mind the spread when buying gold coins and buy from less expensive, reputable dealers.