Throughout history, gold has always been a treasured asset. It has been linked to power and wealth from as early as the fourth century B.C. Today, you can purchase gold bullion from the comfort of your home. The only thing left is to decide on the best place to buy gold bars for you!
With many options available for investing, gold remains a popular choice. Let’s explore how to buy gold bars by looking at some of the top companies.
Best Gold Bullion Dealers
When it comes to buying gold, choosing the best gold bullion dealers is crucial to ensure that you get the best quality product at a fair price. One of the most important steps for doing that is to read gold dealer reviews from reputable sources. They provide insights into the quality of the company’s customer service, pricing, and product selection. By comparing and contrasting reviews from different sources, you can narrow down your search to find the best gold bar dealers that meet your needs and budget. It’s always important to do your research before making any investment, and selecting a gold broker is no exception.
APMEX
American Precious Metals Exchange or APMEX is among the best gold dealers in the U.S. Founded in 2000. The company sells gold bars produced by respected refineries and mints such as Credit Suisse Mint, Scottsdale Mint, Sunshine Mint, and Valcambi Mint.
The company claims to offer more than 10,000 products. In addition to bullion, the company sells gold, silver, copper, platinum, and palladium products such as gold coins, silver coins, jewelry, and old banknotes.
APMEX has a free shipping policy on orders over $199. The shipping fee for orders under $199 is $9.95. Additionally, insurance is included on all shipped packages. The company also offers a seven-day return and refund policy but charges a $50 or 10% restocking fee.
If you don’t have a depository for your gold, APMEX can ship your order to Citadel Global Depository Services for an annual fee.
The company accepts many payment options, including credit or debit cards, bank wire transfers, paper checks, eCheck, PayPal, and bitcoin.
APMEX also offers financial planning services to help their clients protect their assets and build new wealth. It also repurchases gold and silver products from customers.
APMEX accepts orders twenty-four hours a day and seven days a week. This means that you can place your order at any time. If you want to purchase in person, the firm is open Monday to Friday, from 7 a.m. to 5 p.m.
This gold dealer’s reviews are overwhelmingly positive, earning APMEX an A+ rating from the Better Business Bureau (BBB).
JM Bullion
Founded in 2011, JM Bullion has quickly grown in the precious metals industry. The company offers a wide selection of competitively priced products, including gold, silver, platinum, copper, and palladium.
Here is a breakdown of JM Bullion’s shipping rates:
- JM Bullion offers free shipping on orders over $199 and includes insurance costs.
- The minimum shipping fee is $7.99 for orders less than $199.
- You can upgrade your shipping method at checkout if you wish to receive your order faster.
In addition, JM Bullion offers a five-day return policy. The company also has a buyback policy of a minimum of $1,000.
Customers can also request to have their gold bars shipped to JM Bullion’s storage partner, TDS Vaults, free of charge.
JM Bullion accepts multiple payment options: ACH transfer, credit or debit card, paper check, PayPal, bank wire transfer, and cryptocurrency. However, credit card and PayPal payments include a 4% processing fee.
JM Bullion earned their place among the best gold dealers, having an A+ rating from the Better Business Bureau (BBB).
Money Metals Exchange
Founded in 2010, Money Metals Exchange is one of the best online gold bar dealers due to its wide selection and competitive pricing. Additionally, shipping is free of charge on orders over $500. For orders up to $149, the company charges $6.97. For orders between $150 and $499, the shipping fee is $7.97.
Money Metals Exchange offers a three-day return policy but charges a 5% restocking fee on credit card orders. The company also offers a buyback program and claims to pay the highest price among other gold bar dealers.
Moreover, investors can request Money Metals Exchange to store their gold bullion products in Delaware and Massachusetts in Class 3 vaults.
Money Metals Exchange provides prepackaged starter portfolios for beginner investors, and the bundle includes 120 ounces of silver and 1.1 ounces of gold. The company also offers an automated monthly savings plan starting at $100. Additionally, Money Metals Exchange provides price alerts for investors waiting for precious metal’s price to reach a specific mark to make a purchase.
Money Metals is definitely one of the best gold bullion dealers, combining very attractive prices, outstanding customer support, numerous product offerings, and moderate fees. They are holding an A+ rating from the Better Business Bureau (BBB) as well.
What are Gold Bullion Bars?
A gold bar, also referred to as gold bullion or a gold ingot, is a high purity physical gold that comes in the shape of a bar. The minimum purity required for investment is 99.5% gold. Ideally, they must be stored in recognized and secure gold bullion vaults to preserve their quality.
Gold bars are available in different sizes, between one to 100 troy ounce(s). The most common size traded around the world is one troy ounce.
Gold bullion bars also have different styles:
- They can be hand-poured, cast, and minted ingots.
- Hand-poured gold bars are produced by pouring the molten gold into molds.
- Cast bars are also molten into gold molds but are more natural-looking.
- Finally, minted bars are cut from the cast bar and rolled to a uniform thickness.
Each gold bar is stamped with its exact gold weight, finesses, and serial number for added security.
Gold bars are a cost-effective way for investors to diversify their portfolios because of their lower manufacturer’s premium.
Why Should I Purchase Gold Bars?
- Portfolio Diversification
Gold bars are an appealing investment because they are tangible, physical assets whose value rises inversely to the traditional stock market. Thus, a diversified portfolio that combines gold, stocks, and bonds reduces overall volatility and risk. Also, throughout the years, gold has maintained its value and served as a hedge against inflation.
- Inflation Hedge
Throughout history, gold has proven to be an excellent hedge against inflation. Between 2001 and 2007, the price of gold was in the green. Moreover, from 2016 to 2019, the price of gold increased by 44%.
- Easy to Sell or Get a Loan Against
When faced with a financial emergency, you can depend on your gold investment because it can be liquidated quickly. Therefore, you can either sell your gold back to the dealer or get a loan against it from the bank. Moreover, the interest rate may be lower because it is a secured loan.
- Wealth Preservation
Unlike other assets, gold has maintained its value throughout the years. This makes investing in gold a great way to preserve wealth from one generation to the next. In addition, gold can be passed on to your children as a gift for significant life events. Your children can also hold onto this asset and pass it to their children, confident that the gold will retain its price.
Gold Bar Purchasing Tips
Storage and Insurance
Ensure that your gold is stored correctly to maximize protection from damages. Any damage to your gold may affect its resale value. Consider keeping your gold bars in a high-security depository. If you choose to store your gold bars in vault storage, you may access your bars only during depository opening hours. You can also keep your gold bars in a safe-deposit box at the bank. However, the bank doesn’t insure gold bars, and you will have to find an insurance company that covers gold bars kept in the bank.
You may also store your gold bars at home in a private safe. However, before reserving your gold, ensure that your private safety box is fireproof and waterproof and kept in a hidden place. Also, consider getting additional home insurance if your policy doesn’t cover the possible loss of precious metals.
Dealer and Manufacturer
As with any investment, when choosing the best gold bullion dealer for you, paying attention to reputation is vitally important. Research gold dealers’ reviews from previous consumers and business accreditation agencies to ensure the company is trustworthy.
Best gold dealers offer bars that recognized manufacturers and refiners produce. Look for respected producers like the Perth Mint, Royal Canadian Mint, PAMP Suisse, and Credit Suisse to ensure the highest purity level. Additionally, make sure to check the bar’s purity, form, size, and weight before purchasing.
Purity and Fineness
The gold content in the bar has a significant impact on its value and worth. Therefore, ensure any gold bar you purchase has at least 99.5% pure gold or 24 karat gold. Moreover, if you are buying gold bullion bars as an investment, make sure that the bar features the name of the manufacturer, its weight, and its purity.
Gold Bar Pros & Cons
Pros
- Inflation Hedge
Precious metals like gold have an intrinsic value, making them less susceptible to volatility. As a result, if the value of the dollar continues to decrease due to inflation, gold can act as a safe hedge against it.
- Stock Market Alternative
The stock market is extremely volatile. Investors looking for a steadier alternative may turn to gold bars.
- Paper Currency Alternative
- Wealth Preservation
Gold has steadily risen in price over the last few decades. As a result, it can offer fixed long-term growth.
- Portfolio Diversification
- More affordable than gold coins
Cons
- Doesn’t Earn Passive Income
Unlike stocks or bonds, gold investments do not offer dividends. Investors will only see a profit if they liquidate their gold bars.
- Transaction Fees
- Secure Storage Fees
If you choose to store your gold bars at a depository, you will be charged annual storage fees. Even if you store at home, you will likely need to purchase a safe.
- Capital Gains Tax
- Not A Passive Income Asset
Gold assets are subject to capital gains tax by the IRS. When sold, you will be required to pay a 28% tax.
Gold Bullion FAQ
What is a Gold Bullion Bar?
A gold bullion bar is high-purity physical gold that comes in the form of a bar. The minimum purity required for investment is 99.5% gold. Gold bars are available in different sizes, from one to 100 troy ounce(s). However, the most common size traded around the world is one troy ounce. They are a cost-effective way for investors to diversify their portfolios because of their lower manufacturer’s premium.
How Much Does a Gold Bar Weigh?
A standard gold bar weighs around 400 troy ounces, or 27.4 pounds (12.4 kilograms). Banks around the world use this weight. To have a better understanding, it is about the size of a regular brick. However, the kind of gold bar investors would buy for their portfolios doesn’t weigh that much. The most common size traded around the world is one troy ounce or 1.097 ounces.
How Much is Gold Bullion Worth?
Gold bar prices closely follow the gold spot price. The spot price is the current price at which gold may be bought and sold. Therefore, gold bullion prices range based on the spot price, plus a small premium. Shipping, insurance, payment type, and the dealer can also impact a gold bar’s final price. Usually, larger gold bars are available at lower prices compared to smaller gold bars.
How Big Is a Gold Bar?
| Weight | Width | Length | Thickness | Similarity |
|---|---|---|---|---|
| 1 ounce gold bar | 0.95 inches | 1.65 inches | 0.08 inches | Slice of Bread |
| 10-ounce gold bar | 1.46 inches | 2.28 inches | 0.35 inches | Grapefruit |
| 1-kilogram gold bar | 1.58 inches | 3.15 inches | 0.71 inches | 1 liter of water |
| Standard gold bar | 7 inches | 3.63 inches | 1.75 inches | Regular brick |
Do Central Banks Buy Gold Bars?
Central banks do buy gold bars. For example, the U.S. Federal Reserve buys gold bars to manage financial risks, promote financial stability, and diversify assets.
What is Better, Gold Coins or Bars?
The answer depends on personal preferences and interests. Some investors may prefer gold coins because of their aesthetics, popularity, and history. Others may pick gold bars because they get more value for their money and are easier to store. Evaluate the reason you want to buy gold to understand which option is better for you.
Is Buying Gold Online Safe?
Buying gold online is like any other transaction you make over the internet. Make sure to buy gold from reputable dealers and do extensive research about the company before making any purchase. The best online gold dealers use Secure Sockets Layer (SSL) encryption and are Payment Card Industry (PCI) compliant to protect the user.
How to Choose a Reputable Gold Dealer?
When you want to buy gold bars, choose bullion professionals with a solid reputation. Reputable Gold bullion companies usually have a high ranking by the Better Business Bureau (BBB), the Business Consumer Alliance (BCI), and other consumer protection groups. Make sure to check their ratings and customer reviews on the websites mentioned above to make an informed decision.
Can You Add Gold Bars to an IRA?
Most traditional IRAs do not offer investment opportunities in precious metals. However, you can establish a self-directed IRA to purchase qualified gold with your IRA funds. The IRS regulations require that an IRS-approved custodian has the gold. In addition, the gold bullion coins and bars must have a 99.5% fineness level and be produced by a national government mint or an accredited refiner, assayer, or manufacturer.
The Royal Canadian Mint gold bar, Scottsdale Mint gold bar, the PAMP Suisse gold bar, and the Credit Suisse gold bar are IRA-eligible gold bars.
Can You Store IRA Gold at Home?
No, you can’t store IRA gold at home. Instead, the gold bars must be kept in an IRS-approved gold depository. Investors who break the rules could face distribution penalties, which means a 10% penalty.
Where Can You Store Gold Bars Not Held in an IRA?
You can store your gold in an authorized precious metals depository or vault, in a safe-deposit box at the bank, or at home in your private safe. Whichever option you decide, ensure that your gold is appropriately stored and insured to protect against damages.
How to Buy Gold Online?
If you’re looking to buy gold online, there are several important things to keep in mind. First and foremost, it’s crucial to find a reputable dealer. Do your research and read reviews before making a purchase to ensure you’re dealing with a trustworthy seller. Secondly, keep an eye out for fees – some dealers may charge high premiums or shipping costs, so it’s important to compare prices across different websites. Additionally, you’ll want to find secure storage for your gold once it arrives. Look into options like home safes or secure vaults to protect your investment. It’s also worth considering purchasing insurance to further safeguard your purchase. Finally, keep in mind that while gold is often seen as a stable investment, you can’t always count on being able to resell it for the spot price.