Gold Bars
Buy gold bars as investments
As investment vehicles, gold bars are gaining in popularity primarily because gold bars carry much lower premiums than gold bullion coins carry. For example, premiums on kilo gold bars and 100-oz gold bars can be as much as $50 per ounce lower than the premium on American Gold Eagles.
Truly, gold bars are an exciting way to invest in gold. Hefting large gold bars almost causes an adrenalin rush. Invariably, people holding large gold bars for the first time ask, "How can something so small be so heavy?" A huge amount of wealth can be stored and concealed in gold bars.
Gold Bars for sale
Gold bars for sale include 1-oz gold bars, 10-oz gold bars, kilo gold bars, and 100-gram gold bars. All these gold bars are .9999 fine (99.99 pure.)
Whereas only a year ago 1-oz gold bars were the most popular, today more ounces of gold are sold in kilo gold bars than in 1-oz gold bars. That is because more big money is coming to gold, and kilo gold bars are easier to store than are 1-oz gold bars. In the space it takes to store twenty-five 1-oz gold bars (in their packaging from the refinery), six Royal Canadian Mint kilo gold bars (192.90 ounces) could be stored.
As a rule, smaller gold bars carry larger mark-ups over spot. However, at times the premiums 100-gram gold bars are less than the premiums on 10-oz gold bars.
Kilo gold bars
Kilo gold bars are .9999 fine (99.99% pure) and contain 32.15 troy ounces each. In the metric system, a "kilo" is short for kilogram, the base unit of mass in the International System of Units, commonly called the metric system. The metric system is the primary weight (and measurement) system used other parts of the world.
The most commonly available kilo gold bars are the PAMP and the Royal Canadian Mint (RCM) gold bars. PAMP kilo gold bars come in protective plastic cases and usually with certificates. RCM bars do not come with either protective cases or certificates. Actually, the PAMP certificate is superfluous; the real "certificate" is the PAMP hallmark on their gold bars. The Royal Canadian Mint recognizes this and does not issue certificates.
Ten-ounce gold bars
The most prevalent ten-ounce gold bars are PAMP bars. Occasionally, other accepted hallmarks, such as Johnson Matthey or Engelhard or Metalor, gold bars show up. For now, though, PAMP 10-oz gold bars dominate the 10-oz gold bar market. Actually, right now PAMP gold bars of all sizes dominate the market, with the exception of the kilo gold bars. Royal Canadian Mint (RCM) kilo gold bars are usually available.
Ten-ounce gold bars are often bought by investors buying several hundred ounces. Investors buying less than one hundred ounces may want to buy 1-oz gold bars or 100-gram gold bars, both of which will offer greater flexibility when it comes time to liquidate.
One-ounce gold bars
The primary reason for buying one-ounce gold bars instead of one-ounce gold bullion coins is to buy "cheaper gold," i.e., gold with a smaller market up over spot. At times, the difference in mark-ups between one-ounce gold coins and one-ounce gold bars can be $40 an ounce.
As noted above, the most prevalent one-ounce gold bars are the PAMP gold bars, which come twenty-five bars to a container. Each bar is individually encased; a container of twenty-five one ounce PAMP gold bars measures 7-1/2" X 4" X 2-1/4". By comparison, twenty-five one-ounce gold bullion coins in tubes would take up a space of approximately 3-1/4" X 1-1/2" X 1-1/2", less than one-fifth the space needed for twenty-five one-ounce gold bars in their factory case.
100-gram gold bars
The new 100-gram gold bars are rapidly gaining popularity in the gold investment community, primarily because for small pieces of gold (3.215 troy ounces) they carry really small premiums, just a few dollars over the premiums for kilo gold bars.
PAMP, the prestigious European precious metals refinery, produces the 100-gram gold bars. PAMP also turns out kilo gold bars, 10-oz gold bars, and 1-oz gold bars. PAMP 100-gram gold bars come in shrink-wrapped sleeves of ten.
Gold bars' hallmarks
As noted above, PAMP hallmarked bars currently dominate the gold bar market. However, RCM kilo gold bars are just as popular and readily available.
Other hallmarks of gold bars that may show up include Johnson Matthey, Engelhard, Metalor, and Umicore. Most U.S. precious metals investors recognize the names Johnson Matthey and Engelhard. Metalor and Umicore are equally recognized in Europe. Metalor is based in Switzerland; Umicore is headquartered in Belgium with operations in throughout Europe.
Another recognized hallmark for gold bars is Credit Suisse, the huge Swiss bank. Credit Suisse bars are manufactured by PAMP. (A few years ago, Credit Suisse bought First Boston Bank to gain a major foothold in the U.S. banking market.)
Are gold bars good buys?
The primary reason to buy gold bars instead of the popular gold bullion coins is that gold bullion bars sell at smaller markups over spot than do the popular gold bullion coins.
Investors who simply want to buy gold with the smallest markup over spot should consider buying Austrian 100 Coronas or Mexican 50 Pesos, which were the primary gold bullion coins of the 1970s, before Gold Maple Leafs (1979) and American Gold Eagles (1986) were introduced.
Today Austrian 100 Coronas and Mexican 50 Pesos are no longer promoted in the U.S. But, because they are no longer promoted, they often carry smaller premiums over spot than new 1-oz Credit Suisse and PAMP gold bars. However, Austrian 100 Coronas and Mexican 50 Peso gold coins are not always available.
Gold bars for IRAs
One-ounce, 10-oz, kilo and 100-gram gold bars, are eligible to be put in IRAs that accept physical gold and silver products. To learn more about setting up a self-directed IRA that accepts gold and silver products, read Putting Gold and Silver in IRAs.
How to buy gold bars
For more information about how to buy gold bars from CMI Gold & Silver Inc., see our page titled Doing Business with CMIGS. If you are interested in selling gold that you bought from another dealer, you will want to visit the page about selling gold and silver to CMIGS.
If you would like to discuss buying gold bars or low premium gold coins, call us at 1-800-528-1380. We take calls between 7:00 a.m. and 5:00 p.m. MST, Mondays through Fridays. The minimum gold order is ten ounces.
