Gold bars are a bit mysterious to some, as they are usually out-shadowed by the popularity of gold coins. However, these bars have served as an investment vehicle for generations and there are a number of advantages to having them in your collection. Before investing in gold bars, it is essential to learn about the various sizes available as well as where and how gold bars can be purchased.

Gold Bar Sizes

Many investors are turned off by gold bars because they feel they have to purchase them in costly kilograms, but this is not the case at all. Gold bars can be purchased in grams, which make them competitive with coins price wise. Typical units that these bars will appear in include grams, kilos and ounces. The size of the bar you purchase will determine its price, premium and liquidity.

The advantage of investing in bigger gold bars is that you pay a reduced premium, which saves you money. The reason for this is because producing a large gold bar is much easier than producing smaller ones. However, the downside to buying a large bar is that the number of people who can buy it back from you when you’re ready to sell is lower than is the case with smaller bars, which will sell faster.

Where and How to Buy Gold Bars

Gold bars can be purchased online, at auctions, and if you live in certain areas of Europe, over the counter at banks. Unless you know auctions very well it is best to avoid them, and for those that are new to investing in gold bars, it may be best to purchase them at a local dealer unless you know of a reputable sources where they can be purchased online. There are some dubious sources online selling fake gold bars so exercise caution. Gold bars can be purchased with the same methods that are used to purchase gold coins: credit card, cash, wire transfer, money orders and even online payment services such as PayPal.

Gold Bar Liquidity

Liquidity is a measure of how fast an asset can be sold. For instance, stocks can be sold instantaneously through a brokerage account, and are extremely liquid, while an eight bedroom mansion could take weeks, months, or even years to sell, which means it has low liquidity.

The liquidity of gold bars will depend on a number of different factors, such as the size of the bar, brand and the dealer you purchased it from. Prestigious companies such as PAMP Suisse are well respected in the gold business and their bars are recognizable worldwide. However, even a 400 oz PAMP bar will take time to sell as there simply aren’t many people in the world that can afford it.

Under no circumstances should you buy a gold bar from any source that is not established or well known. Should you do so you run the risk of acquiring a product that cannot be sold for a profitable price, and a worst case scenario is receiving a “gold bar” that is not made of gold.