How To Buy Gold Bars

Key Takeaways

• Because they are generally valued for their precious metal content alone, gold bars might be an excellent investment in terms of dollar per gold content.
• Owning actual gold carries nearly no default risk and very little counterparty risk.
• Gold is a genuine asset that can be swiftly liquidated in times of need and has been used as money for millennia.
• Gold may be viewed as a hedge against inflation and economic collapse because of its scarcity and steady demand.
• Compared to other goods, gold bars are simple to store and move.
• Due to its inherent properties, gold is incredibly durable and won’t rust or tarnish, keeping its worth for generations to come.

Investors wishing to diversify their portfolio or safeguard their wealth from fiat currency devaluation and stock market uncertainty during times of economic crisis frequently shift their emphasis to precious metals as a logical, tangible asset investment.

Gold has been used as a commodity and a form of money for millennia, making it the most popular choice among precious metal investors. Gold bullion bars Nigeria represent the perfect combination of these qualities. They are a genuine asset that will hold their worth for many centuries to come and won’t corrode.

Furthermore, the majority of sales of gold bullion bars are determined only by the amount of precious metal they contain. Given that dealers usually demand lesser premiums for this type of product (compared to gold coins, for example), making them an ideal option to maximize your investment per ounce of gold.

This blog will walk you through the process of purchasing a gold bar in Nigeria and provide you with a comprehensive understanding of the gold market, regardless of your level of experience as an investor seeking portfolio diversity.

What Are Gold Bars?

First things first: A gold bar is a type of gold bullion that is created by pouring molten gold into molds to form an ingot (poured bars or cast bars) or minted with a design and/or company emblem (minted bars).

There are numerous sizes and forms of gold bars, from a half gram to one kilogram.

Reputable precious metal refiners that adhere to accepted industry standards create gold bars. By producing bullion bars in a range of sizes, these refiners guarantee constant purity, precise weight, and simplicity of resale in the gold market.

What Is The Buying Process?

If you are new to the physical gold market and planning a Nigeria gold bars purchase, you could be inundated with inquiries, such as, “How do I start investing?”What is the appropriate amount of tangible gold to include in my investing portfolio? Or even “Which brand of gold bars is the finest to purchase?”

We have created a few steps as a guideline to help you plan your investment properly when purchasing gold bars online.

Step 1: Plan Your Purchase

If you are new to buy gold bars in Nigeria, you may be asking yourself, “Is now a good time to buy?” Well, we are not financial advisors, but what we can say is that if you take a look at historical Gold spot prices, you’ll see that gold has held its purchasing power for decades and even thousands of years.

Physical gold purchases shouldn’t be considered a quick fix. So we don’t advocate becoming obsessed with watching the price of gold and attempting to enter the market at the exact correct time.

The current market price of gold at any particular time is known as the gold spot price. Throughout the day, it varies according to supply and demand in the market as well as worldwide trade activity. The balance between buyers and sellers in the global gold market is ultimately reflected in the spot price.

But the spot price is only a starting point. The final cost of the goods will be determined by the percentage that dealers charge over that, which is known as a premium.

Step 2: Plan Your Investment Size

It will be time to figure out how much you truly want to invest in genuine gold bullion once you’ve decided when to buy.

There are no hard-and-fast guidelines for deciding how much of your wealth should go into any one asset. That will rely on your aims and the business cycle.

Depending on their own financial objectives, risk tolerance, and market conditions, many investors decide to allocate a percentage of their investment portfolio to gold as part of a diversification plan.

Step 3: Choose Your Products And Lock In The Price

It’s time to select your bullion product now that you know how much you want to spend on actual gold.

The 1 troy ounce of.999 pure gold content is the most common size for individual purchase. Higher bullion bars, such as 5 troy ounces or a 1kg gold bar in Nigeria, often come with lower premiums per ounce. A greater number of smaller gold bars, ranging from 1 to 10 grams, can assist strike a balance between affordability and versatility.

As previously stated, the spot price of gold will change somewhat every other minute during the day. These daily swings will often be gentle rather than sharp spikes or declines because gold is not as volatile as other assets.

To guard against transient market swings while making a purchase, some gold dealers let customers temporarily lock in pricing throughout the checkout process.

Finding The Best Price

If you want to optimize your investment while seeking Cheap gold bars Nigeria, you need to understand how to calculate the gold price per troy ounce and analyze which product will match that expectation.

Most gold bars are made with .9999 purity. This means that you just need to figure out the average price for one troy ounce of gold (or 31.1 grams) in order to compare the pricing of goods with varying weights.

Additionally, as previously said, remember that the premium over spot decreases with the size of the bar. This indicates that a 1-gram bar of gold has a higher premium % than a 1-oz bar, a 10-oz bar will have an even lower premium, and so on.

Where To Buy Gold Bars

Understanding where to buy gold bars in Nigeria, banks and neighborhood dealers may sell gold bars, internet merchants like Goldy Jewellery typically have lower prices because of their larger clientele and more demand.

Every dealer charges a premium that varies substantially above the spot price of a bullion commodity. Local dealers would likely raise the prices on their items to maintain a profit, making it vital to recognize the best place to buy gold bars Nigeria based on pricing structure and trust.

Gold Bars Vs. Gold Coins

One of the biggest conundrums among gold investors is whether to buy gold bars or gold coins.

Gold coins are only minted by government mints (or private mints with a legal license to create them under that nation’s name). Additionally, they are typically struck with intricate designs that are rich in cultural and symbolic symbols of the nation that produced them.

Depending on local laws, gold coins may occasionally be accepted as legal cash and frequently have face value. Thus, gold bullion coins might be considered the more liquid choice.

Because of these factors, a gold coin is often more valuable than a gold bullion bar. The cost of the bullion will increase with the amount of effort that goes into it.

Because of this, gold bars can be the greatest choice for people who wish to accumulate more pure gold and do not want to take numismatic value into account.

What Are The Best Types Of Gold Bars To Buy?

First and foremost, search for gold bars of investment quality that are at least 99.5% (.995) pure gold. The majority of our available gold bullion bars have purity ratings of 9999.

If you plan to buy gold for retirement or long-term investment, be careful to choose investment-grade bullion bars. On the product’s dedicated site, you may confirm the purity and certification.

Regarding brands, we advise you to stick with refiners that are reputable and well-known in the precious metals business for ease of liquidation. Their bars could be somewhat more expensive than lesser-known mints, but they also fetch a little better price during the repurchase process and are easier to resell.

Let’s have a look at a few highly renowned and trusted companies throughout the globe:

• PAMP Suisse

Offering gold bars in a variety of sizes, PAMP Suisse is a renowned precious metals refiner with significant global recognition. Its Lady Fortuna design is revered across the world as a representation of excellence and artistry. Additionally, the brand creates themed collections with designs influenced by faith and cultural and symbolic motifs.

• Scottsdale Mint

Reputable private mint Scottsdale Mint is well-known for creating high-quality gold bars with safe assay packaging that confirms purity and authenticity. These bars are instantly recognizable and trusted by gold consumers looking for certified products because of their characteristic crowned lion design.

• Sovereign Government Mints

Government-supported mints that adhere to stringent regulations also produce gold bullion bars. Due to their consistent quality, high resale value, and dependability, these bars are frequently chosen over less well-known private refiners in the global market.

Popular Gold Bar Sizes

The Troy ounce, which is slightly heavier than the standard ounce and about equivalent to 31.1 grams, is still the most often used measure of weight for precious metals.

Investors reviewing Gold bars for sale in Nigeria most frequently seek out 1 oz gold bars, closely followed by 10 troy ounces. However, as the gold market grew, there was a growing need for a wider range of weights to satisfy various investor demands.

For example, since 1 kilogram is equal to 32.15 troy ounces, it is generally preferable to purchase a single 1 kg gold bar rather than 32 separate 1-troy-ounce ones. This is due to both practical considerations and the fact that, as we have previously explained, the heavier the bar, the lower the premium it will typically draw.

Therefore, gold bars are more varied than other precious metals like silver and platinum to allow varying investment sizes.

Gold bars are often available for purchase in the following sizes:

• ½ gram (0.016 Troy oz)
• 1 gram (0.032 Troy oz)
• 2 grams (0.064 Troy oz)
• 5 grams, or 0.16 Troy ounces
• 10 grams, or 0.32 Troy ounces
• 1 Troy ounce
• 50 grams, or 1.60 Troy ounces
• 100 grams (3.22 Troy oz)
• 5 Troy ounces
• 250 grams (8.04 Troy oz)
• Ten Troy ounces
• 500 grams (16.08 Troy oz)
• 1 kilogram (32.15 Troy oz)

Buying Gold Bars Vs Silver Bars

It is quite normal for both novice and experienced investors to wonder if they should purchase gold or silver bars. Naturally, a variety of circumstances determine the answer to that question.

Silver bars might be an excellent way for novice investors to dabble in the precious metals market. But it is also feasible for them to make a small, cheap purchase of smaller gold bars (e.g., ½ grams to 10 grams gold bars).

It all depends on how the market is doing right now. Both gold and silver tend to perform well during times of economic downturns; silver prices might vary more due to its strong industrial demand.

Gold, on the other hand, tends to be less volatile and might be considered a somewhat better alternative to safeguard your wealth against inflation.

In fact, according to experts, investing in both precious metals could be the wisest course of action. Your prospects of making more money at the conclusion of the fiscal year are higher if your investment portfolio is more diverse.

To decide which is the best choice right now, keep an eye on the spot prices for gold and silver both now and in the past.

Selling Gold Bars

A time to purchase and a time to sell are always present. As we just discussed, monitoring correct gold spot prices is crucial to figuring out when to sell your holdings and make a larger profit.

When you decide to liquidate, the question might be “who to sell gold bars to?”

Make sure to give us at Goldy Jewellery some thought if you’re searching for a trustworthy gold dealer that provides an industry-leading buyback procedure that is quick, simple, and transparent.

We believe in conducting business the old-fashioned way and giving you a quick and straightforward buyback procedure.

We will send you a purchase order with the shipping address for your precious metals once you lock in your price to complete the transaction. Payments are normally processed in accordance with the dealer’s internal protocols and compliance standards following authentication and verification.

Storage

Because gold is currently about 60 times more expensive than silver, storing gold bars at home can be much simpler than storing silver bars. As a result, the amount of space required for gold bars will be significantly less than that of silver bars for the same investment value.

Regarding safety concerns, only keep your bullion bars in hidden places. This does not always entail having a safe box, but having one would be quite beneficial, as long as it is also hidden.

Also, be discreet about your possessions. Keep a sealed legal will with the locations of your gold bars (and the security code for your safe box, if you have one) and only share important information with persons you know you can trust.

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