There are many precious metals for investment purposes, but out of all those gold remains the most sought after and eminent investment option. Investors usually turn towards gold to mitigate risks by diversifying. There are many ways an individual can invest in gold. They can do so by either opting for an intangible option like gold index funds/ETFs or by directly investing in physical gold such as bullion bars, bullion coins, bullion ingots, bullion tael / Luong and jewellery. Physical gold appears to be highly liquid and people turn to it during economic collapses.
Let us in detail discuss some examples of physical gold bullions investment options:
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Gold Bullion Bars And Ingots
Usually referred to as gold bars, nuggets, or a gold ingot, bullion bars are bars made of refined gold usually manufactured by bar producers who generally print their name, bar’s weight, fineness, and the gold content on the bullion bar. The majority of these bullion bars are flat in shape, however, on the European side of the world brick shape is preferred. When it comes to the standard of purity, bullion bars are generally 99.99%, 99.5%, and 99% pure gold with 99.5% being the lower limit of fineness. They come in weights of 400 oz, 100 oz, 10 oz, 2 oz, 1 oz, ½ oz, and ¼ oz. The additional cost for investing in bullion bars is relatively low and they’re highly liquid and considered as the most lucrative and safe option of investment and a great option for hedging inflation
Larger bullion bars are usually referred to as ingots and they’re produced when molten metal is poured into molds. A standard ingot weighs 400 troy oz or 12.4 kgs and it’s not just traded but also held by some central banks. The 31.15 troy oz and 100 troy oz gold bullion bars are preferred for investing as they are relatively easy to manage.
There are gold bullion bar prices to suit all budgets, regardless your available capital, you can purchase physical gold bullion bars to take advantage of the gold price. For full details on the various sizes and values of gold bullion bars, you can visit the Gold News website.
Gold Bullion Coins
Gold bullion coins are a convenient, effective, and cost-efficient way of adding gold to investment portfolios. Because they are made of such a precious metal, they’re not used in day to day transactions like regular coins. Many countries have manufactured official gold bullion coin for themselves. The nominal value of these coins is minted on them. Like most gold products they’re acquired due to their liquidity and to mitigate inflation. They usually come in weights 1 oz, ½ oz, ¼ oz, 1/10 oz, and 1/20 oz.
Gold Bullion Tael
Historically referred to as the Chinese teal, the gold bullion teal is usually a donut-shaped gold cast bar with a hole in the center. It is usually given as gifts and weighs around 37.5g.
Gold Bullion Luong
A gold bullion Luong, like the gold bullion teal, is a gold cast bar which generally weighs more than 1 troy oz.
Gold Jewellery
Of all the physical gold investment options, gold jewellery is the least preferred. Even though it is quite liquid, convenient to acquire and it gives the buyer a certain amount of gold ownership, acquiring it is quite expensive and it has a low resale value. It is usually bought with the intent of either wearing it, collecting or gifting it to someone else.