Gold bars and ingots

Gold ingots are basically gold bars that are cast from a mould rather than stamped like a gold coin. They tend to be rougher and thicker than stamped bars, often called biscuits, but still come in all weights from one gram up to a "London Good Delivery Bar" which is 12.5 kilograms or 400 ounces troy weight.

The London Good delivery bars are really only used for major international markets and are purchased by banks, large companies and business that wish to store assets this way.

They are usually stored in Bank Vaults around the world and not moved around much although the ownership of them may be. As they are now worth a considerable amount of money, depending on the price of gold, they are not used very much by small investors who generally will buy and sell smaller bars within their price range.

The cost of manufacturing the smaller 1,2.5, 5 and 10 gram bars does not make them very good investments as a premium has to be paid and it would take some time, even with the current increases in gold value, to appreciate any profit from their purchase.

Why do People Invest in Gold Bars?

When it comes to investing money, there are so many options it is difficult to know which is best. Naturally, many will go for the option that can offer, or claims it can offer the best return on the initial investment. Savings accounts offering a certain interest rate or shares in high-performing companies can appeal to investors, offering a regular income and potential rewards that, at face value, a piece of metal can not provide. However, while banks and businesses are prone to collapse, leaving your investment completely lost, a physical gold bar can not.

Buying precious metals offers investors an asset that can not be devalued in the same way as money, through continuous printing of cash. Gold has an intrinsic value that draws investors looking to protect a part of their wealth in an asset whose value won't be lost to inflation or economic collapse. Consequentially, demand for gold will tend to rise in times of crisis when the frailties of other forms of investment are exposed, pushing the value of gold bullion up significantly.

For private investors we think that gold bullion coins rather than ingots should be the preferred option.

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