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1-ounce gold bars: Everything to know about the shiny investment

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Investors are racing to buy 1-ounce gold bars — and there are several big reasons why. Getty Images

In today's changing financial landscape, investors are constantly seeking ways to diversify their portfolios and protect their wealth. One option that has stood the test of time is investing in gold. This precious metal has unique qualities compared to other investment assets, including its ability to retain value and minimize risk from other types of investments. 

And, while there are various forms of gold investments, including gold stocks and gold IRAs, 1-ounce gold bars in particular have rapidly gained in popularity in recent years. In fact, the warehouse giant Costco just began selling gold bars, but it can't keep up with demand, as the 1-ounce bars continue to sell out just a few hours after being listed online.

But why exactly are 1-ounce gold bars in such high demand right now? And what else should you know about this shiny investment before buying in? Learn more about the benefits of gold investing here.

Everything to know about 1-ounce gold bars

Gold bars, also known as gold bullion bars, are precisely what their name suggests: bars of gold that weigh approximately one ounce. These bars are typically made from pure gold, with a fineness of 99.9% or higher. They come in various designs and are manufactured by reputable mints and refiners around the world.

Benefits of buying 1-ounce gold bars

There are a range of benefits to buying 1-ounce gold bars, including:

  • Accessibility: One of the primary advantages of 1-ounce gold bars is that they're easily accessible, which makes it easier for new investors to enter the world of gold investing without committing to larger and more expensive — or riskier — options.
  • Liquidity: 1-ounce gold bars are highly liquid assets. They are recognized globally and buyers and sellers can easily transact them in the precious metals market. This liquidity ensures that you can convert your gold holdings into cash relatively quickly when needed.
  • Portability: Due to their compact size, 1-ounce gold bars are easy to store and transport. Unlike larger gold bars, they can be kept in a secure home safe or even a safe deposit box at a bank.
  • Divisibility: Owning multiple 1-ounce gold bars allows for greater flexibility when it comes to selling or trading your gold. You can choose to sell a portion of your holdings without the need to sell it all. And, some 1-ounce gold bars are even designed to be broken up into smaller pieces, which are usually 1 gram in size, which makes it even easier to sell only a portion of your holdings.
  • Security: Gold bars are considered a safe-haven asset, and owning physical gold provides a hedge against economic uncertainty and inflation. Many investors see them as a form of insurance against economic downturns.
  • Diversification: Adding 1-ounce gold bars to your investment portfolio can also help diversify your holdings. Gold's price movements often have a low correlation with other asset classes like stocks and bonds, which can reduce overall portfolio risk.

Explore your gold investing options here.

How to purchase 1-ounce gold bars

If you're planning to purchase 1-ounce gold bars, be sure to do the following:

  • Find reputable dealers: To purchase 1-ounce gold bars, it's crucial to buy from reputable dealers, such as well-known bullion dealers, banks or government mints. Research the dealer's reputation, ensure they provide authenticity guarantees and verify their buyback policies.
  • Verify authenticity: Look for hallmarks and serial numbers on the gold bars. These marks certify the authenticity and origin of the bars. Reputable dealers will provide certificates of authenticity to guarantee the purity and weight of the gold.
  • Compare pricing: The price of 1-ounce gold bars fluctuates based on the current market price of gold and may include a premium to cover manufacturing and distribution costs. Compare prices from different sources to ensure you get a fair deal.
  • Consider storage: Consider your storage options. If you plan to store the gold at home, invest in a secure safe or storage solution. Alternatively, you can use the services of a professional vault or bank.

The bottom line

While there are lots of options for gold investing, 1-ounce gold bars offer investors a tangible and accessible way to invest in the precious metal. Their liquidity, portability and divisibility make them an attractive option for both beginners and experienced investors. However, like any investment, it's essential to do your due diligence, buy from reputable sources and consider the role of gold in your overall investment strategy. Still, whether you're looking for a hedge against economic instability or a way to diversify your portfolio, 1-ounce gold bars can be a shining addition to your financial assets.

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