Where to Buy Gold
Figuring out where to buy gold bars can be tricky. You know you need to go to a reputable supplier, but you’re not quite sure who.
The good news is that there are plenty of sellers out there with the right credentials. It’s just a matter of tracking them down and placing your order.
In the UK, the Bank of England keeps a large reserve of physical gold in its vaults. Central banks in Germany, China, the US and France do the same. Gold acts as a reserve currency, ready to step in when currencies or markets require its assistance.
While former president Nixon moved the Bretton Woods system off the gold standard in 1972, the metal remains an important medium of exchange. Officially, it may no longer be legal tender, but unofficially, it remains valuable. Its history of price stability and use as a store of value makes it indispensable in the world economy. Countries, corporations and individuals need it to keep the economic machine afloat. And, interestingly, they continue to buy it.
Where Can You Buy Gold Bars?
You can buy gold bars from various vendors, both domestic and international. However, the ancient principle caveat emptor (buyer beware) very much applies: if you buy gold from a distributor, you must do your homework.
The best way to check the quality of a gold bar vendor is to check independent review sites online. These should provide unbiased reviews of gold distributors, letting you know whether they are a legitimate and trustworthy outfit or not.
If you want to purchase the highest-quality gold bars with 99.99 per cent fine gold or more, then find distributors who work with trusted refiners. Any bullion you purchase should originate from recognised and trusted manufacturers such as:
Gold bars supplied by trusted refiners carry the manufacturer's mark, a serial number and details of weight and purity or fineness:
- A hallmark
- A registration number
These guarantee the quality and weight of the gold bar.
Quality suppliers also issue certificates of authenticity. If you are a gold bar seller, future buyers can use these to trace back the authenticity of the bullion they purchase.
How Much Is Gold Worth?
Gold is famous for retaining its value over time. If you had an ounce of gold in 1900, you could buy yourself a high-quality tailored suit. Today, you can do the same. In terms of goods, gold’s value is constant.
Gold is money and is recognised all over the world. It gets its value from its:
- Rarity
- Use-value in industrial processes
- Value when transformed into jewellery and other non-industrial applications
- Corrosion-resistance
- Physical strength
- Ability to mix easily with other metals
- Divisibility into any weight
- Resistance to counterfeiting
While the price of gold changes daily versus fiat currencies, the value of gold remains constant. Regardless of how much money governments and central banks create more currency, gold remains outside of the system. It’s a store of wealth that doesn’t lose its value versus goods and services.
Nobody knows the future of gold prices. However, as long as money expansion is faster than increases in real production, gold prices will likely remain high. If the fiat money supply grows and goods production falls, the value of gold in terms of government money will rise even more.
How Much Do Gold Bars Cost?
How much gold bars cost depends on the weight of the bar. Gold bars are minted in various sizes ranging from under 1 gram to a kilo. Cast gold bars are available in sizes from 50 grams to 400 Ounces, over 12 kilos.
At the time of writing [December 2022], a 1g gold bar costs around £70, a 5g bar is £280, a 50g bar is £2,500, a 100g bar is £5,000, a 500g bar is £24,500, and a 1kg bar is £48,850.
Investing In Gold: Strategy
Gold prices fluctuate from day to day and month to month. But one thing is certainly true: over longer periods, say a decade or more, they rise inexorably. Eventually, the force of central bank inflation causes relative prices to correct, and gold assumes a new, higher value in terms of fiat currency.
If you are a serious gold investor, you need to take this fact into consideration. Gold doesn’t usually provide you with instant returns. However, it does protect your capital from depreciation and the risks posed by the equity markets.
Those who buy gold bars need to prepare to hold onto their investment for a long time. Gold prices may not go in the direction you want for the first few years. Eventually, though, economic gravity will start working, and prices relative to fiat will go up.
Strictly speaking, the value of gold is not rising. (That only happens if the goods in circulation increase relative to the gold available). Instead, the value of fiat currency in terms of gold is falling. You need more pounds today to buy an ounce of gold than you did fifty years ago.
When investing in gold, make sure you have enough cash remaining to meet your living expenses. Ideally, you shouldn’t touch your gold investment for many years. View it in a similar way to equities, not a cash savings account.
How To Buy Gold Bars
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Not all distributors offer great deals on gold bullion. Many charge a significant markup and don’t work with reputable refiners.
The Gold Bullion Co. stocks a range of bars and coins from recognised, legitimate suppliers. We sell bullion to households and businesses across the UK, offering tracked, insured delivery and secure storage for large investments.
If you would like to invest in gold bars, please see our full collection of certified bars from top refiners. If you aren’t sure which bars to buy, get support on 01902 623 259 or download our investment guide.
