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Buying Gold Bars: A Guide For Investors Video

Guide to Buying Gold Bars

In this video, we’ll explain 4 key considerations when buying gold bars, so you know exactly how to get the most from your purchase. We cover the Why, what, where and how of buying gold bars. Stick to these guidelines and you’ll source the best gold bars to meet your needs, at the lowest possible prices.

Why Buy Gold Bars

The best place to start is to ask yourself WHY PHYS01_Animated_Gif_2_MPUbuying gold bars may be the right choice for you. Let’s assume you already understand the myriad benefits that owning physical gold can bring – from inflation protection, a hedge against falling stock markets and a store of wealth during Brexit.

So why would you choose to buy gold bars rather than coins Well, the main reason investors choose gold bars is value. If you’re seeking the lowest cost of physical gold per gram, then gold bars can be the best choice.

Gold bars come in a range of weights and sizes, with the bigger retail bars coming in at a kilo in weight and the commercial bars weighing a whopping 400 ounces! Because bars are available in much bigger sizes than coins, the relative manufacturing cost is far lower, reducing the overall price per gram. Designs on coins are also more intricate, further increasing manufacturing cost versus gold bars.

What Bars to Buy

Next up, I’ll tell you exactly how to choose the best bars to purchase. The ‘what’ can be split into bar size and bar brand.

While the price per gram reduces as the gold bar size increases, it doesn’t mean you should go out and buy the biggest bar you can afford. Agreed, buying a 1-kilo gold bar provides great value, but this choice can seriously hamper your divisibility. Owning one large gold bar means you can’t sell part of your portfolio…it’s all or nothing. A far better choice is to buy a number of smaller bars, providing flexibility to sell part of your holding at any time. While small bars are more expensive per gram, most dealers will offer discounts if you buy higher quantities of them. The amount you wish to invest and your overall cashflow will help you find the sweet spot between size and quantity.

So, how about the brand of the bar. Does it matter Generally speaking, the answer is no. Certain premium brands such as Pamp will sell their bars significantly higher than many other reputable brands. I’d avoid buying brands at the top end as you probably won’t receive a premium for them when you come to sell.

Shop Gold Bars

However, it is important that you ensure you buy brands that have the following 4 pieces of information stamped on them.


Purity – don’t buy less than 99.99%

Refiner stamp

And serial number

Private mints may not include these, so stick with well-known brands like Metalor, Heraeus and Umicore.

My TOP TIP – Some dealers also offer pre-owned gold bars. These may not be brand new but will be available at a discount to brand new bars. Don’t forget that you’re looking at gold content with bars, rather than anything else, so reducing your purchase price in this way will increase your profits.

Where to Buy Gold Bars

With the increased value of larger gold bars, it’s no surprise that criminals target them to forge. Gold bars are easier to forge than intricately designed gold coins, usually by filling a thin outer shell of gold with cheaper material. So buying gold bars from a reliable source is crucial. The best source of gold bars is specialist gold dealers. But how do you know they’re reputable

The answer is, do your research, but there are 5 key indicators to look for;

  1. Have they got a track record Being around for 10 years or more may not guarantee the quality, but it suggests they’ve pleased enough customers to be in business that long
  2. Check out their reviews. Services such as Trustpilot allow customers to make uninvited anonymous reviews, avoiding dealers handpicking customers for review.
  3. Buyback policy. Does the dealer have a policy in place to buyback what it sells If they don’t want to buyback the gold, why would you want to buy it in the first place
  4. Ensure the dealer is a member of an established association such as the British Numismatic Trade Association (BNTA)
  5. Finally, delivery promptness. Ask them how long the bar will take to despatch. Most bars should be in stock and despatched as soon as funds clear.

How To Buy Gold Bars

Insider's Guide to gold and silverThe final part of the process is actually how you go about buying the gold bars. By far the most effective method these days is ordering online from the dealer you’ve chosen. There are several advantages to ordering this way.

  1. Choice and no hassle. Browsing an online gold store means you can research different prices and bars from the comfort of your own home. You can purchase at any time of the day, meaning you can lock in prices whenever you want. This can enable you to secure a low price when the market dips, rather than having to physically find a dealer before prices bounce back up.
  2. Usually, online dealers will be able to offer lower prices than physical shops who have to cover additional costs like expensive West End premises
  3. While walking out of a shop with a gold bar under your arm sounds exciting, it makes you a prime target for thieves. Insurance won’t cover loss, so your gold investing could come to an abrupt end. Buying online is far safer. Delivery is fully insured to your door, and with some dealers is completely free.

So, they’re the 4 key considerations when buying gold bars. Once you’ve found a reputable dealer, don’t be afraid to ask for their guidance. They should be able to recommend which weight and quantity combination best suits your needs.

If you need your gold bars stored by professionals, most dealers will offer a vaulting service.

Ask if the storage includes insurance and whether your gold is ring-fenced (known as segregated).

Let us help

If you’re ready to buy your gold bars online from us, simply shop here. If you have further questions, need guidance, or would like to discuss the merits of gold bars versus gold coins, then please get in contact. We can be reached by calling 020 7060 9992, through live chat on the website, or by contacting us here.

Don’t forget to check out our full suite of video guides.


Daniel Fisher formed physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.

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