1oz gold bars constitute an excellent alternative to investment gold coins. Although they weigh the same as the best-selling coins from around the world, such as the American Eagle or the Maple Leaf, they offer substantial advantages.
Characteristics of the 1oz Gold Bar
The 1oz bar meets the requirements of the professional market for an investment bar, such as a fineness of 0.999 and a standard rectangular form.
The 1oz bar is quite recent but it has become, in ten years, a must-own investment bar. As testimony, most gold producers accredited by the London Bullion Market Association now carry the 1oz bar. 1oz bars are available with PAMP, Valcambi, Royal Canadian Mint etc.
This small ingot has the characteristics of an investment bar, but what is its real advantage over an investment coin?
A Better Price
The 1oz gold bar’s main advantage is its price. For instance, a gold coin carries an additional premium to the value of the gold it contains. This premium varies with several criteria, such as the quantity issued, the condition of the coin and the demand for it on the numismatic market. These are all variables that could hinder an optimal resale of your coins.
The premium on gold bars is close to zero, since a 1oz bar has no numismatic value. Moreover, it is advisable to keep it in its original packaging so as not to alter the quality of the product (scratches, shocks). In reality, the small premium applied to these 1oz bars corresponds to the producer’s and other intermediaries’ margins, but it’s negligible in comparison to the one on a gold coin.
Obviously, the 1oz bar is the ideal solution for precious metals investors looking for a product with good liquidity and a low premium. Its small size allows easy reselling without having to worry about numismatic criteria, as is the case for a coin.