How to Invest in Gold Bars & Gold Bullion

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There are many factors when it comes to invest in Precious Metals. Here’s a brief guide that will help you invest in gold. Before purchasing gold bars, you should consider different sizes of gold, purity, manufacturer and the ease of liquidity.

Sizes of Gold Bars

Gold BarsGold bars come in different sizes or weights such as per gram, per ounce, per kilo, or even per 400 oz gold bar. Depending on your budget, it’s better to buy the biggest gold bar size available due to the premium percentage. Premium is the amount over and above the value of the intrinsic gold content, expressed as a percentage. For example, if the gold price was USD 1,000 and the premium of gold manufacturer is 5%, you would pay 1,050 per ounce. However, when you purchase smaller sizes of gold (below ounce), the premium is still calculated based on ounce value. This is due to the fact that it is less costly and labor intensive to produce a large Gold Kilo Bar compared to a small 1 gram of gold.

Purity

Gold being melted in productionThe purity of gold is expressed in carats, often abbreviated to “ct” of “K” in the USA and some other countries. Pure gold has a purity of 24 carats. Various other purities exist that are measured relative to 24 carats. These are summarised in the table below.

Table 1. The relationship between gold content (by weight), its carat rating and hallmark rating for standard gold alloys.

Purity

Gold content (wt. %)

Fineness

24 carat gold

99+

990

22 carat gold

91.6

916

18 carat gold

75.0

750

14 carat gold

58.5

585

9 carat gold

37.5

375

An alternative method of expressing purity is “fineness”. This expresses the purity of gold in parts per 1000.

Gold may be alloyed with other metals such as silver, copper, zinc or silicon to produce purities less than 24 carat. Silver and copper and most commonly used alloying elements for gold. Pure gold is too soft to be able to be used for jewellery. The metal chosen as an alloying element my influence properties such as workability and colour of the resultant gold alloy.

The purity of the gold is “marked” onto jewellery by stamping or laser engraving. This acts a quality control stamp. Often this is done after the alloy is tested by a qualified testing laboratory or facility. Depending on which country the gold is produced, the caratage or fineness may be stamped into the item of jewellery.

According to the International Hallmarking Convention, there is a “no negative tolerance” policy. This means that a gold alloy determined to consist of 749 parts of gold per 1000 would not qualify for a 750 quality mark. Methods used to assay or test the purity of gold include:

Manufacturer & Ease of Liquidity

gold-bankingWe, at Coaex work with the best manufacturers in the world. With its precise production, wide range of sizes available and ease of liquidity, Istanbul Gold Refinery (IGR) has been our most reliable supplier over the years. Here’s the key advantages of IGR gold bars:

  • 999.9 Fineness – the greatest fineness you can find
  • Sizes range from as little as 0.5 gram to kilo bars*
  • Deposit gold bars to any bank in the world hassle-free

* We don’t list all sizes of IGR products such as kilo bars in our store. If you would like to purchase sizes which is not available in our store, please use our contact form. We will quote you in 24 hours.