What Size Gold Bar to Buy

– Research & information from Core Bullion Traders.

What size gold bar to buy, is a question we are often asked by those buying gold for investment. There are a number of factors to consider before you choose to buy a (standard) 1oz Gold Bar or indeed, a 1 Kilo Gold Bar. As always when buying gold, you should arm yourself with all of the relevant information and then make the decision on what size bar to buy, that will best suit your requirements and budget.

Common Gold Bar Sizes

The most common gold bullion bar sizes are: 1oz, 50 gram, 100 gram, 250 gram, 500 gram and 1 Kilo.  There are many other gold bar sizes, but they would not be traded as often as the sizes listed here. The reasons for this vary, from smaller bars costing a lot more (per gram) than the standard 1oz or larger bars, and also some of the larger weight bars simply being rarer to find. But we will talk more about that later in this piece. A 1oz Gold bullion bar is 1 ‘Troy’ ounce of pure (24 carat) gold – this is exactly 31.1 grams.

Lesser-Traded Gold Bar Sizes

As we said earlier, there are many other sizes outside of the more common sizes listed above, that are available in gold bars. Other sizes would be: 1 gram, 2 gram, 5 gram, 10 gram, 20 gram – all of these bars being smaller than the standard 1 oz Gold bar (31.1 grams), will work out at a much more expensive ‘cost per gram’. It also should be noted that you will generally pay the same insurance and shipping charge for a 5 gram bar as you would for a 1oz bar. This usually means that it can be cost-prohibitive to buy the smaller bar sizes as it just does not make financial sense. Some larger (than 1oz) lesser traded bars would be 5oz & 10oz bars. Again, there is nothing wrong with these size bars other than they are rarer to buy and avail of than say 100 gram or 25 gram bars. These larger 5oz & 10oz bars are still a good ‘store of wealth’ although some smaller dealers around the world prefer to deal in the gram bars.

What to Consider

The general rule of thumb when buying Gold bullion is: the larger the bar – the better value you will get when buying.  Think of it like ‘economies of scale’ in reverse i.e. the fewer pieces you buy for your budget – the cheaper it should be. The reason for this is simple. Consider a 1 Kilo Gold Bullion Bar – this is 32.15 ounces of gold. If you were to compare buying 1 Kilo Bar (1 piece of gold) with 32 X 1oz Bars (approximately the same amount of gold) – the refinery would have to mint, test, weigh, package and number 32 separate pieces of gold as opposed to just 1 piece with the 1 Kilo Bar. Obviously, there is a lot more work when you choose 32 individual pieces over 1 piece, and therefore that extra work will be reflected in the amount you pay. So why would you ever choose 32 pieces over 1 piece? Again, this will come down to your own personal situation and financial position. If you choose the 32 pieces, it may cost you slightly more but it gives you the freedom to cash-in smaller amounts of gold should you need to after you buy.  If you choose the 1 Kilo piece, then you will need to cash that entire piece (and value) should you need only a small amount of cashflow in the future.

Bottom Line

The bottom line is, it is a decision that you will have to make based on your own personal circumstances and budget. If you feel you may not need to ‘dip-into’ your investment of gold and you can let it sit for the full length of time you require, then always go with the largest bar your budget will allow.  If you are uncertain that you can leave your full budget invested for a set period of time, and feel you may need access to smaller amounts of funds throughout your gold holding time, then go with the 1oz bars. At the end of the day your purchase of gold should be viewed as a ‘store of wealth’ and should work for you in this way.

Contact us today if you would like to know more.  We look forward to dealing with you at Core Bullion Traders.

Nigel Doolin is Head of Trading at Core Bullion Traders – A gold trading company based in Dublin, Ireland – he can be contacted directly at: nigel@corebulliontraders.ie or Tel: +353 (0)1 447 5975 Disclaimer &  Copyright 2021 Although every effort has been made to undertake this work with care and diligence, Core Bullion Traders do not guarantee the accuracy of any forecasts or assumptions. Nothing contained in this presentation constitutes an offer to buy or sell securities or commodities and nor does it constitute advice in relation to the buying or selling of investments. It is published only for informational purposes. Core Bullion Traders does not accept responsibility for any losses or damages arising directly or indirectly from the use of this presentation or data.