Gold bars also called ingots or biscuits are a unique investment. Gold has been valued by civilizations for millennia, with a vast history of buying, selling, trading, and being used as a status symbol and a currency. Today, people invest in gold bars for both historical and financial factors. Let’s take a closer look at this interesting form of gold investing.
People have been producing gold bars for hundreds of years. While the tools and technology have evolved, the concept has been relatively consistent. The gold is melted, refined, and poured into a mold for shaping. As it hardens, it is often stamped. Hundreds of years ago, the stamps were typically a royal seal, declaring eternal ownership of the gold to a dynasty or kingdom. As time progressed, the seal or stamp was often of the credentials, name, or logo of the person creating the gold bars. Over time, much like other brands and products today, various gold bar producers earned reputations as having higher or lower quality products.
From the late 1700s until 1933, gold was legal tender currency of the United States, and had a fixed value. Gold bars were stamped with the weight, as well as the dollar value. People that mined for gold successfully, or just happened to find some, were able to take the gold to a local assayer for refinement. This led to the creation of many gold bars in our country.
Another interesting fact about the origin of some gold bars is that the weight was not always accurate. Royal gold bars had a reputation for being a bit lighter than they were supposed to be, due to theft and graft. On the other hand, professionally assayed bars were often heavier than the stamp claimed to be, a technique that some assayers implemented to guarantee weight and create a positive reputation for their craft. It was also a way to avoid ridicule or more fatal punishment; it was better to make each bar a little heavy rather than be accused of theft and sentenced to hang.
While gold bars certainly have a market value based on the price of gold, there is often more to it than that when determining what a gold bar is really worth. For example, a gold bar’s history can make it more valuable than another gold bar of the exact same weight and size. If a gold bar was known to have a part in a famous train robbery, or sunken treasure, or a tie to a royal line, then that bar may be considered more valuable than a “regular” bar because of its history. Even if the bar is not appraised for a higher cost, many people are still willing to pay more to own a piece of history.
There are a number of ways to acquire, purchase, and invest in gold bars. Many families pass them from generation to generation, while other people begin this tradition for themselves. Gold dealers and a plethora of online options can be found for your gold bar investment purchase. However, we urge you to be wary of overpriced bars, counterfeits, or just plain untrustworthy dealers. Never buy gold from a dealer or company that does not have a solid rating with the BBB and other agencies like the Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC). ITM Trading has an A+ rating from the BBB, and is accredited by the PCGS and NGC, as well as a member of the Industry Council for Tangible Assets (ICTA) and American Numismatic Association (ANA). You can be assured that your investment with our company is legal, trustworthy, and legitimate.
In addition to gold bars, many people opt to purchase gold coins and gold bullion. The coins especially are popular. Given that they are smaller than most gold bars, they are typically more affordable, which is appealing to anyone on a budget, and to newbie investors looking to get into the physical gold market for the first time.
Some also choose to invest in stock market gold (GLD), as opposed to physical gold. The primary disadvantage to this strategy is that your investment is in paper. Owning physical gold keeps your investment separate and safe from potential market disasters, as well as from greedy governments looking to tax or get their share of your stock market portfolio. With physical gold, your investment is yours, so long as you keep and store it safely.
There are a number of advantages to investing in gold bars. First off, they come in a variety of forms, sizes, and weights. Meaning, there are many investment options when it comes to buying gold bars. A few examples include 1 tonne gold bars, 400 oz. gold bars, one kilogram (1 kg) gold bars, 100 gram gold bars, 50 gram gold bars, 20 gram gold bars, 10 gram gold bars, 10 ounce gold bars, 1 ounce gold bars, and many more. 1 ounce gold bars are the most popular, as they are more affordable than heavier options, though ITM Trading does offer additional options, such as 10 ounce or 1 kilogram gold bars (availability does vary over time).
Another benefit to investing in gold bars is how easy they are to trade. There is always a demand for gold bars. We recommend investing in gold with a long term strategy, but when the time comes to sell your gold bars, you won’t have a problem doing so.
Also, gold bars typically have lower premiums than some other forms of physical gold, such as gold coins. The price you pay for a gold bar is typically closer to the spot price of gold for the weight of the bar you buy.
So, who are gold bars good for? In short, anyone. Investing in physical gold and silver is becoming increasingly popular, because more people are realizing that there are other ways to create wealth besides stocks, bonds, and real estate. In fact, the traditional investment vehicles have all proven recently to be very unreliable. Gold, on the other hand, has been reliable for centuries, even if it does see the occasional decline. Investors, bankers, collectors, and historians all buy gold bars, often for different reasons. But the investment is undeniably a good one, and is a financial move that can reap tremendous benefits for you and your family over time.
Sunshine Mint – The Sunshine Mint’s corporate office is located in Coeur d’ Alene, Idaho.
Federal Mint Swiss Mint - The Swiss Mint is located in Bernastrasse 28, CH-3003 Bern, Switzerland.
JM Gold and Silver Refining - Their office location is at 4601 West 2100 South Salt Lake City.
ITM Trading offers free shipping on gold bars weighing 1 oz or more. If you have any questions about our gold and silver products call us 1.800.846.2577
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