Gold can be bought any time of the year, at any price, and in any quantity, especially if you are planning to make a long-term purchase. For the longest time gold has been coveted and cherished as a symbol of wealth and status and even today central governments, high net worth individuals, financial institutions, and small individual investors store physical gold. In many cultures, they have special days or festivals where it is considered auspicious to buy at least 10 grams of gold on that day. These days, the price of gold and its demand is equally high.
Thanks to technology, gold can be bought in physical and non-physical forms. Non-physical forms of gold include Gold based exchange-traded funds (ETFs), which are also referred to as paper gold. ETFs are shares of gold in the precious metal commodity market. In many markets, ETF can be exchanged for cash or physical gold at the time of sale. The second non-physical investment option in gold is to buy shares or bonds in gold mining companies. Both these non-physical forms of gold are listed in the stock markets and one can purchase them from reputed commodity markets or stock market dealers.
Physical Gold Investment
Physical gold may be purchased in the form of gold bars, gold coins, and gold jewelry. When one talks of purchasing gold bullion, they are speaking about gold bars which can be bought as 1 gram or 10 grams of gold, or in heavier sizes of 1 kg, 5 kg, or 10 kg gold bars. Bullion is generally sold by the gram or an ounce and its purity, manufacturer’s name; and logo, and weight is stamped on the obverse side of the bar. Investment-grade gold has a purity of at least 99.5%.
Gold coins are either sold as bullion or as collector’s items. In its bullion form, the gold coin has the same spot market rate for the inherent gold purity, however, as collector’s gold, they have an additional price attached to them by virtue of their rarity or design. Some examples of numismatic gold are American Eagle, South African Krugerrand, or Canadian Maple Leaf, to name a few. Typically, gold coins have lower gold content than gold bars and the 10 gram of gold will be fortified with an alloy of copper or silver.
Antique jewelry may have higher gold content and provide an avenue for purchasing gold, but generally, in jewelry form gold has the highest premium. To hold its design and shape, make it durable, and adjust the color, manufacturers use an alloy of other metals with gold.
You can buy 10 grams of gold from gold dealers at a physical brick-and-mortar store or online. Gold bullion is sold at spot market rates, but it will have a premium attached to it that will include delivery fees, insurance, manufacturing costs, among others. Whether you buy gold online or physically, make sure you go through a dealer listed in the US Mint’s database to be assured that you are sold the genuine article.