Buying bullion bars is done generally by investors who need to buy a lot of bullion without the weight of paying the immense premiums. This is the best approach to protect their assets while ensuring them the opportunity to still use their purchasing power without any limitations.
Today, the extracting cost of gold is getting higher by the day, while the supply is gradually exhausting. Due to the law of supply and demand, it is almost sure that the overall buying price of gold in the next few months or years will surely rise.
The center of the gold market is located in UK. The LBMA or London Bullion Market Association is the one who is responsible for over-the-counter sales of gold. If you intend on buying gold bars, then you can chose from a wide variety of weights and sizes that fit your budget.
But, when buying gold bars, never forget that the bars can be bought at varying weights and at various levels of purity of the metal as per the needs. So it is imperative to determine and check that you are getting what you are paying for. For this, an expert gold dealer is needed to confirm the true purity of the gold that you are buying.
What are gold bar purities?
Purities may be summed up as either 100% which means 24K Gold or as 1000% which again is 24k but which is the measure used more in the West.
The Gold in this form is very soft and malleable can be easily transported and kept in a safe place. It has a purity of 0.9999 fine gold. There is a standard set by LBMA which is called Good Delivery Specification for both Gold and Silver bars. These are bars that weigh 12.4 kilograms and mostly held by central banks and can be transferred from bank to bank if needed. These also carry a purity of 99.5% for Gold and 99.9% for Silver.
Where can you use gold bars?
Gold bars can be converted into a wide variety of useful and valuable items. These may be in the form of medical or technological components for machines and of course jewelry. Even a single bar of Gold can get repeated returns for you as a businessman by converting into jewelry. Buying gold bars is an excellent idea especially if you want to invest your money in risk free investments. Aside from being a liquid asset, it still beats all other currencies in its purchasing power.
DISCLAIMER: The views expressed in this blog are those of the author and may not reflect those of Jindal Bullion Limited. The author has made every effort to ensure accuracy of information provided; however, neither Jindal Bullion Limited nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Jindal Bullion Limited and the author of this article do not accept culpability for losses and/or damages arising from the use of this publication.