Let’s face it, who hasn’t thought about what it would be like to hold a big chunk of gold that was all their own. Anyone who has watched the movies has seen these beautiful gold bars sitting in a safe or vault somewhere. But most people don’t know where to actually buy gold bullion these days.
It is important to point out that the gold bars you see in the movies and on TV are known as Good Delivery bars and they weigh 25 pounds. They are not exactly as light as they seem on TV. At 400 ounces, each bar costs more than $680,000 each and in order to maintain their status as Good Delivery, they can never leave their vault. As such, the chances of you actually owning or even holding one of the 99.5% pure bars of gold bullion is very slim to not at all.
With that said though, you can buy gold bullion in finer purities from a number of reliable sources. Most smaller bars, plates and coins of gold are usually 99.9% pure gold and as such, are worth a whole lot more per ounce.
A lot of time and effort is put into each piece of gold bullion. Some foundries even laser etch the surface of the gold to create a holographic certificate of authenticity on the bar’s face.
When it comes time to buy gold bullion, the first resource one should check out is the local coin shops in their city. These coin shops specialize in buying, selling and trading collectible legal tender. Since gold is the epitome of legal tender, almost every coin shop in the world also sells gold coins, plates and bars. Keep in mind that you may end up paying more for the bar than the actual gold value, but it is the simplest way for anyone to buy gold bullion.
If you plan on purchasing a large quantity of pure gold bullion, then you are better off hiring a dealer who has the necessary connections to get large amounts of this precious metal. So if you just happen to have enough cash to invest and want to own a Good Delivery bar of your own, only a dealer can get it for you. Keep in mind though, you will also need a good safe or vault for storing the gold in. If anyone finds out that you are keeping large quantities in your home, then you might become a target.
For small quantities, going through a reseller or vendor is always the best way. Many people have found that coin shops tend to be too expensive and instead turn to a commercial reseller of the precious metal. It is through these resellers that most jewelers get the gold that they use in creating their rings and other fine pieces.
You will be required to purchase a minimum quantity before the reseller will take you seriously, but they have the ability to sell you the exact amount you wish to buy. They can melt it down into a bar of any shape or size, stamp the bar accordingly and even provide you with a certificate of authenticity.
Then of course there are a number of small scale operations which are legitimate retailers of gold bullion. While you may not have one in your city, you can find them online and safely make a purchase from them. Take your time researching any company before you buy from them because there are many companies online today that are only out to scam you.
You will need to know important things like the purity content, the dimensions, the weight and the shipping methods. By knowing the dimensions the weight and purity content, you can ensure you are getting what you are paying for.
Gold has a specific density of about 19.3 grams per cubic centimeter. For example, a 99.9% pure Kinebar is 4.04cm x 2.33cm x 0.18cm, or about 1.7 cubic centimeters which equates to roughly 32.81 grams. The Kinebar is listed as a 1 troy ounce bullion bar which is roughly 31.1 grams. When you take into account the laser etching, engraving and stamping, the estimated 32.81 grams is very close to the advertised weight.
Since most gold bullion is sold in 99.9% purity this simple math can help make sure that you are getting what you are paying for. You should also stay away from anything that is labeled as being less pure unless you are also planning on investing in scrap gold.Dan Craig