How To Buy Gold Bars?
12/11/2023Daniel Fisher
When you’re investing, you will likely know that there is a wide range of available options available to you. More often than not, most investors will eventually decide to turn to physical gold as a way to diversify their portfolios. That’s because buying gold bars allows you to hold pure gold directly, without counterparty risk. Before you rush into purchasing gold, however, you should ensure you are taking care and doing plenty of research.
So, are you wondering how to buy gold bars and strengthen your investment portfolio?
Choosing the right type, size and quantity of gold bar can be crucial to optimising your investment. . You also need to consider who you want to buy for and keep in mind additional costs for storage and insurance.
Even though it might sound daunting, our guide will help you to understand the process and choose the right investment for your portfolio.
Key Steps To Buy Gold Bars
When you decide to buy gold bars, follow these key steps for a smooth purchasing process:
- Choose the type of gold. Gold bars come in different sizes and purities, such as 1 gram up to 1 kilogram and 99.5% to 99.99% pure gold. Smaller bars offer more liquidity. Larger 400-ounce wholesale gold bars have lower premiums but are more difficult to sell.
- Find reputable sellers. Purchase only from established dealers with positive reviews and industry accreditations. This ensures the quality and authenticity of your gold bars. Look for brands like PAMP Suisse, Perth Mint,Metalor and Valcambi.
- Compare pricing. Check online dealers and precious metal retailers for competitive spot prices and premiums. Premiums should range from 3-8% above the spot price, depending on the gold bar size, although tiny gold wafers can cost significantly higher premiums.
- Select a payment method. Common options include bank transfers and credit cards,although a small number of dealers may permit cash, cheques or crypto. Each has pros and cons regarding fees, security, and convenience.
- Organize insured delivery. Opt for fully insured discreet delivery with tracking and signature confirmation. Have your gold bars shipped to your address or pick them up directly from a vault. Alternatively, many gold dealers will offer secure storage facilities for you at an additional cost.
- Verify your purchase. When you receive your gold bars, check the assay certificate and branding marks to validate purity, weight, and authenticity before storage.
Factors to Consider When Buying Gold Bars
Purchasing physical gold bars requires evaluating several factors to find the right product for your investment strategy and needs:
Purity
Focus on buying gold bars with a fineness of .999 and above. This designates 24 karat gold, which is 99.9% pure gold. Realistically 99.99% is the most common and desirable purity. Anything less contains alloy metals, reducing the value. Stick to reputable brands like PAMP Suisse that meet high purity standards. Check for markings indicating fineness such as “.9999” or “24K”.
Size
Common gold bar sizes include 5 gram, 10 grams, 1 ounce, 100 grams, and 1 kilogram. One ounce and 100gsizes from trusted mints offer the best liquidity. Smaller bars have higher premiums but are easier to sell. Larger 400-ounce wholesale gold bars have lower premiums but limited buyers. Consider your budget and intended use.
Brand
Reputable brands like PAMP Suisse or Metalor guarantee quality and make reselling easier. Avoid obscure brands and “dirty gold” from questionable sources. Online dealers often provide brand authentication. Ask for manufacturer certificates. We recommend Metlor as our preferred choice as it offers the perfect balance of Suisse reputation, without the additional premium of the Pamp brand.
Certifications
Only buy bars with certificates from reputable assayers confirming weight, purity, and metal content. These protect against counterfeits. Well-known mints and refineries like the Royal Mint and Metalor provide authentic certificates.
Storage
Safe and insured storage is essential. Options include bank safe deposit boxes, home safes, and insured bullion vaults. Consider cost, security features, location, and insurance. Many dealers also offer storage services.
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Where to Buy Gold Bars in the UK
Online
Purchasing gold bars online from trusted dealers like Physical Gold is convenient and secure. Physical Gold allows you to buy, sell and store physical gold bars. Research dealers in terms of:
- Pricing – Compare premiums over spot price across dealers. Premiums should generally range from 3-8% for the optimum sizes.
- Selection – Look for a wide range of bar sizes from reputable refineries.
- Reviews – Verify a trusted reputation through independent customer reviews.
- Certifications – Check for LBMA (The London Bullion Market Association), BNTA (British Numismatic Trade Association) and BSI accreditations ensuring quality.
- Services – Many UK online dealers, including Physical Gold, offer insured delivery, storage, and buy-back options.
- Security – Use an encrypted website and secure payment methods for purchases.
In Person
There are limited options for buying gold bars in person in the UK compared to online dealers. However, some potential in-person purchasing avenues include:
- Local Coin Stores – Specialised independent coin dealers may also sell gold bars over the counter, though availability varies. Call ahead to check inventory and pricing.
- Gold Refineries – Some UK gold refineries may allow qualified buyers to visit and purchase large wholesale gold bars directly. However, the minimums are very high.
When purchasing in person, be sure to still verify the seller’s credentials and the gold bar authenticity through proper documentation and certifications before completing the transaction.
Unsure Whether to Buy Gold Bars or Gold Coins?
Our automated portfolio builder will provide suggestions based on various investment objectives.
How to Choose the Right Seller in the UK
Choosing a reputable seller is key to buying authentic gold bars in the UK. If you aren’t sure where to start, then take a look at some helpful tips for selecting the right gold bar retailer below:
- Verify credentials – It’s crucial that you only buy from dealers accredited by organisations like LBMA, BNTA or BSI. That’s because they can look at audit sourcing, production, and business practices to ensure everything is above board.
- Check certifications – Likewise, you should ensure sellers provide certificates verifying bar purity, weight, and metal content from reputable mints and refineries to avoid any issues.
- Research reputation – It’s in your best interest to read independent reviews and complaints and look for evidence of ethical business practices and satisfied customers.
- Compare pricing – You should shop around and get quotes from multiple sellers and compare premiums over real-time spot prices. Generally speaking, reasonable premiums range from 3-8%.
- Review services – You should look at various delivery methods, storage options, and buy-back programs when comparing sellers, and decide which is best for you.
- Check security – Look for secure website encryption and payment options to protect purchases.
- Confirm insurance – Make sure sellers fully insure shipments and storage through reputable providers.
By thoroughly vetting UK sellers on these points, you can find a trustworthy gold bar source for your investment needs without worry. Tested sellers like Physical Gold meet these standards, and will certainly be worth considering for that reason.
Pros and Cons of Buying Gold Bars for UK Investors
Buying physical gold bars has advantages and disadvantages to consider:
Pros
- Gold has intrinsic value unaffected by economic fluctuations.
- Gold bars are a way to diversify your investment portfolio.
- Bars of at least 995/1000 purity are VAT exempt as they qualify as investment gold.
- Owning gold is a hedge against inflation and currency devaluation.
- Gold prices historically rise during times of economic uncertainty.
- Gold bars from reputable mints maintain high resale value.
- Physical gold is not subject to counterparty risk like securities.
Cons
- Gold bars can have high premiums over spot price, especially bars of 20g and smaller.
- Certain sizes may be less liquid if you need to sell quickly.
- Storage of high-value gold requires security measures against theft.
- Transporting and insuring large quantities of gold has logistical challenges.
- No regular income stream like dividends from stocks and bonds.
- Scams and fakes mean buyers must beware of unscrupulous sellers.
Analyse your investment objectives, risk tolerance, and portfolio balance when deciding if adding physical gold bars makes sense for your financial strategy. Consult a financial advisor for guidance tailored to your specific circumstances.
Analyse your investment objectives, risk tolerance, and portfolio balance when deciding if adding physical gold bars makes sense for your financial strategy. Consult a financial advisor for guidance tailored to your specific circumstances.
Get Started Buying Gold Bars with Physical Gold
Now that you understand the basics of purchasing gold bars, it’s time to take the next step and make your first investment in physical gold.
Physical Gold is the premier online dealer of gold bars in the UK. Our team of precious metals experts can offer guidance for new gold investors on selecting the right gold bars for your portfolio and investment goals.
Reach out to Physical Gold today. If you have any questions about buying, delivery, storage and reselling, our team will be happy to help.
Buying gold bars for the first time does involve some research and planning. However, the team at Physical Gold simplifies the process with their decades of expertise.
Visit PhysicalGold.com, call 020 7060 9992 or send an email to info@physicalgold.com to start your journey of investing in gold bars today. Our knowledgeable staff will ensure you have a smooth purchase experience and make a sound investment.
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View productsFrequently Asked Questions About Buying Gold Bars in the UK
Can you buy gold bars at banks in the UK?
Some major UK banks offer gold bar products, however, selection is usually limited. Banks also tend to charge higher premiums. For the best selection and prices, reputable online dealers or specialists like PhysicalGold are preferable.
What is the cost of 1 gram gold bars?
The price of 1 gram gold bars is determined by the current spot price of gold plus a premium charged by the dealer. For example, with a spot price of around £1,500 per ounce, a 1 gram gold bar would cost around £60. Expect to pay around a 25% premium above spot.
What is the price of 1 kg gold bars in the UK?
One kilogram gold bars currently sell for around £50,000 based on a spot price of £1,500 per ounce. However, larger gold bars can have lower premiums in the range of 2-5% above spot price. Premiums vary among UK dealers.
Which gold bar is recommended for investment in the UK?
Most financial advisors recommend 1 ounce or 100 gram gold bars for diversification. One ounce gold bars offer flexibility. 100g gold bars carry slightly lower premiums. Avoid novelty sizes and stick with well-known brands like PAMP Suisse.
What is the largest gold bar sold in the UK?
The largest standard gold bar size is the 400 troy ounce “Good Delivery bar” from the London Bullion Market Association. These wholesale bars weigh around 12.4 kilograms and are traded between banks, mints, refineries and foundries.
Should I buy physical gold bars in the UK?
Buying some gold bars as part of a diversified portfolio can be prudent, but speak to a financial advisor about your specific situation. Consider your investment timeframe, risk tolerance, and goals before investing in physical gold bars or any precious metals.
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