When you are looking into buying gold, there are plenty of types and options. The two major ones are paper gold and physical gold. Physical gold is just that, cold, hard gold. Paper gold is any sort of paper certificate you might be awarded to show that you own "x" amount of gold that is sitting in some storage place somewhere. For obvious reasons, physical gold provides a deeper sense of security, especially in the case of full economic collapse.
Physical gold also comes in many forms. There is jewelry, which can sometimes be quite pure (especially if it is more antique), however much more popular for investors, there are bullion coins and bullion bars. For the purpose of this article we will focus on gold bullion bars, and why they tend to be preferable.
A bar of gold is a specific quantity of refined metallic gold, having at least 99.5% purity, that has been manufactured under specific determinations to contain a certain standard of conditions, including manufacture, labeling, and record-keeping. Gold bars can either be minted or cast, and these two types of manufacture determine their size and shape. Casting a bar of gold includes pouring molten gold into an ingot mold, which shapes the bar into brick-like pieces, good for stacking and storing. Minting a bar of gold involves using large, flat pieces of gold blanks that are hand cut into certain specific dimensions. In the case of either, certain markings are imprinted with a press that includes information such as the weight, purity, and mint.
The standard of measurement for gold is the troy ounce, and one troy ounce equals approximately 31.103 grams. Gold bars are produced within standard sizes and weights, which makes them much easier to quantify when buying, selling or trading. The Good Delivery bar, a 400 troy ounce bar, is the standard gold bar that is held and traded internationally by central banks and bullion dealers around the world. To retain their quality status, these must be stored in recognized and secured gold bullion vaults. The kilobar is another standard type of gold bar, and is equivalent to 1000 grams in mass. When traded, the premium on the kilobar is quite low over the actual spot value of gold, making it ideal for smaller transfers that happen between investors, traders, and banks.
The decision to invest in gold is probably a good one, but remember to do your research to always ensure that you are purchasing from a reputable dealer when it comes time to buy.
Physical gold also comes in many forms. There is jewelry, which can sometimes be quite pure (especially if it is more antique), however much more popular for investors, there are bullion coins and bullion bars. For the purpose of this article we will focus on gold bullion bars, and why they tend to be preferable.
A bar of gold is a specific quantity of refined metallic gold, having at least 99.5% purity, that has been manufactured under specific determinations to contain a certain standard of conditions, including manufacture, labeling, and record-keeping. Gold bars can either be minted or cast, and these two types of manufacture determine their size and shape. Casting a bar of gold includes pouring molten gold into an ingot mold, which shapes the bar into brick-like pieces, good for stacking and storing. Minting a bar of gold involves using large, flat pieces of gold blanks that are hand cut into certain specific dimensions. In the case of either, certain markings are imprinted with a press that includes information such as the weight, purity, and mint.
The standard of measurement for gold is the troy ounce, and one troy ounce equals approximately 31.103 grams. Gold bars are produced within standard sizes and weights, which makes them much easier to quantify when buying, selling or trading. The Good Delivery bar, a 400 troy ounce bar, is the standard gold bar that is held and traded internationally by central banks and bullion dealers around the world. To retain their quality status, these must be stored in recognized and secured gold bullion vaults. The kilobar is another standard type of gold bar, and is equivalent to 1000 grams in mass. When traded, the premium on the kilobar is quite low over the actual spot value of gold, making it ideal for smaller transfers that happen between investors, traders, and banks.
The decision to invest in gold is probably a good one, but remember to do your research to always ensure that you are purchasing from a reputable dealer when it comes time to buy.
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