Buying Gold Bars for Investment

Gold is a store of wealth that tends to increase in times of volatility. When the world presents uncertainty, currency and equities tend to depreciate and gold tends to increase in value. There are various types of gold for investment, including gold bars.

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Why Buy Gold Bars?

There are a number of different reasons why intelligent investors are buying gold bars in increasing numbers. As well as the psychological comfort of possessing a physical investment – gold bars are impervious to rust and only melt at temperatures above 1,063°C – investing in gold bars also makes logical financial sense.

 

Gold bars aren’t subject to the same fluctuations that affect paper currency all over the world, dependent as they are on political and economic circumstances of individual countries. With all of the uncertainty surrounding the UK economy after Brexit, the pound might be ailing, but the value of gold remains robust.

 

 

Private Investment

What’s more, physical gold represents one of the few remaining forms of private investment available, since there is no requirement to register their ownership. Additionally, physical gold carries attractive tax benefits, especially when it comes to inheritance.

 

What’s more, with gold mines being depleted at rates which are are often unsustainable, gold is rare and becoming rarer day by day. As such, its value will only rise as it runs out, making 2017 a great time to invest in gold.

Types of Gold Bars

There are a wide variety of different kinds of gold bars in circulation today, but these generally fall into two categories: cast bars and minted bars. On the one hand, cast bars are the standard form of ingot we all expect to see when we think of a gold bar and are formed by pouring molten gold into a cast.

 

Minted bars, meanwhile, are simply cast bars that have been stamped with a unique brand or insignia, making them generally a little more expensive. When purchasing a cast gold bar it is important that you do so from an LBMA approved manufacturer. The following brands are common across the retail market: Metalor, Umicore, Pamp, Credit Suisse,  Johnson Matthey, Heraeus and UBS.

 

 

Purity of Gold Bars

Gold bars come in different degrees of purity. 24 karat gold is the purest form of gold available and refers to a purity strength of 99.99%. These bars are, of course, more expensive than less pure alternatives, such as the Baht Bar, manufactured in Thailand and normally at a purity strength of around 96.5%.

 

The price of a bar will naturally depend on its purity – but there’s no need to worry; whenever you buy gold from a respected gold dealer such as The Pure Gold Company you’ll be issued with a certificate of authenticity to assuage any doubts.

Weights and Measures

As well as varying in terms of purity, gold bars also come in all shapes and sizes. The smallest commercially available gold bar weighs in at a mere 0.3g and is generally used in jewellery, while the largest  is a whopping 250kg and is owned by Japanese automobile company Mitsubishi.

 

With bars made specifically for jewellery purposes, 1g is generally the smallest size that can be purchased in Europe, though the ones most commonly used by banks and gold reserves weigh in at 12.4kg and are known as London “Good Delivery” bars.

 

Gold bars for investment should be sized so that they are not too small (therefore becoming uneconomical) or too big (limiting the market to whom you can sell). The general weights for standard investment are: 1kg, 500g, 250g, 100g, 50g, 10z, 20g, 10g and 5g.

Purchasing gold bars through a SIPP

The Pure Gold Company only sell pure gold bars that are 24 karat supported with a Certificate of Authenticity from the manufacturer and ourselves, available to anyone looking to buy gold bars for investment.

 

If you are purchasing gold within Self-Invested Personal Pensions (or SIPPs) it will need to be in the form of gold bullion bars of at least 99.5 parts out of 1000. Gold coins (being legal tender and therefore tax free) are not permitted within a pension or a SIPP.

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Buying Gold Ingots for Investment

Gold ingots are, essentially, gold bars: trapezoid blocks of refined metallic gold made to specific weights for sale. The internationally traded standard is the Good Delivery bar, which weighs 400 troy ounces (12.4kg or 438.9oz). The precise gold content of Good Delivery bars is permitted to vary between 350oz and 450oz, but the minimum purity required is 99.5% gold.

 

Ingots are manufactured by minting or stamping from appropriately rolled gold sheets. For trading and investment many investors prefer to use the 1kg bar, 32.15 troy ounces, which have a lower premium when traded. Most kilobars are flat, although some investors prefer the brick shape.

 

Using Gold Ingots

Gold ingots have many uses beyond investment, providing a solid foundation for their use. Various industries, particularly those working in high-end electronics, make use of gold for stable, long-lasting connectors. The jewellery industry also make use of gold extensively. These industries almost exclusively demand gold in ingot form as it’s easier to make use of than sculpted gold coins.

Investment Advantages

Given the current financial uncertainty, an insurance policy to protect your wealth and investments is an important thing to have. Physical gold is one of the least exposed forms of investment to political and financial volatility. Gold ingots aren’t subject to the fluctuations of physical currency, and physical gold comes with attractive tax benefits, especially when it comes to inheritance.

 

A Store of Wealth

Historically, gold has been a store of wealth throughout human history thanks to its rarity, aesthetic value and durability. Gold does not rust or tarnish and only melts at extremely high temperatures, making it easy to store.

 

Gold ingots are also the only option for investment within pensions or Self-Invested Personal Pension funds (SIPPs), as many of these investments don’t support gold coins or paper gold investment. Gold ingots used for a SIPP or regular pension must be 99.5% pure gold, which The Pure Gold Company can supply.

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How To Buy Gold Bars With The Pure Gold Company

Our simple four-step process makes acquiring your very own gold bar investment easier than ever before. After an initial consultation with one of our experienced specialists, you’ll be availed of all of your options and advised as to which product is best for you.

 

When you’re completely happy with our service and ready to go ahead and make your investment, you’ll be asked to fill out a purchase order before completing payment via personal cheque or bank order. While debit or credit cards are generally not accepted, exceptions may be made for smaller orders.

 

Finally, the gold will be delivered directly to your doorstep using our complimentary and fully insured courier service. Alternatively, you can opt to store your newly acquired gold in a London Bullion Market Association (LBMA) vault, which will be arranged by The Pure Gold Company, providing complete peace of mind.


How to Buy Gold & Silver

  • Consultation

    From one of our dedicated specialists to understand what products are available and relevant to you. The extent of consultation is driven by you and is a good opportunity to ask us as many questions as possible. We listen to your circumstances and are happy to provide tax efficient solutions.
  • Purchase order

    When you feel comfortable and confident and you’ve had all your questions adequately answered you are able to complete a purchase order which is your instruction to purchase metals.
  • Payment

    In order to lock in the price and complete your order you can transfer funds via bank transfer or personal cheque. For smaller orders we may accept debit or credit cards.
  • Storage and delivery

    You can either receive your gold via our complimentary Insured delivery service or have your gold safely stored within a London Bullion Market Association (LBMA) vault whereby your metals are fully allocated, segregated and insured by Lloyds of London.

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  • Sir Geoffrey Leigh - Property Entrepreneur

    I found The Pure Gold Company knowledgeable and trustworthy and in my opinion wouldn’t hesitate to recommend them
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    These guys were patient and seemed to understand my situation well. They weren't pushy or salesy and gave me all the facts so that I could make my own decision. I was surprised at how straightforward they made the process and would certainly recommend The Pure Gold Company to anyone looking to invest in gold or silver
  • Oliver Shipton - Partner at Lee & Thompson LLP

    Having thoroughly researched the gold investment market I found The Pure Gold Company. They were knowledgable, transparent and kept it all very simple. My gold arrived the next day and I’m now discussing options for silver storage. I wouldn’t hesitate in recommending them...
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    A friend recommended The Pure Gold Company, as they have a reputation of assisting beginners, they were fantastic. They explained in detail how it all works and what options would best suit our circumstances. They guided us on timing and saved us 6% by waiting a couple of weeks
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