What are the cheapest ways to invest in physical gold?

If there is one investment asset that has had a record year, it is gold. After starting 2024 at $2,063.73 per ounce, the price of the precious metal has seen a steady rise, peaking at a record $2,736.35 per ounce by the end of October. This impressive rally has made gold one of the hottest commodities of the year for both new and seasoned investors. While the price of gold has fallen slightly since then – the current price is $2,677.35 per ounce – the strong upward price trajectory over the past year highlights gold’s enduring appeal.

For those intrigued by the potential of gold, there are many ways to gain exposure to this asset, since gold exchange traded funds (ETF) and gold mining stocks has futures contracts. However, one of the most popular and beginner-friendly options is physical gold. Owning tangible gold allows investors to hold a piece of wealth in their hands, without counterparty risk or market intermediaries. It’s an accessible way to invest in a timeless asset, making it particularly attractive to those looking for long-term stability.

That said, buy physical gold The price is often high, as premiums, production costs and storage considerations can quickly add up. But by choosing the right forms of gold, it is possible to build a portfolio of this precious metal while respecting your financial means.

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What are the cheapest ways to invest in physical gold?

If you want to find an affordable way to invest in physical gold, you can consider the following options:

Small gold bars

Small gold bars, from 1 gramoffer another accessible entry point to owning physical gold – and are ideal for beginners you are looking to invest without significant upfront cost. Produced by reputable refiners and accompanied by assay cards for verification of authenticity, these bars combine portability and lower premiums compared to coins of equivalent weight. Their standardized form makes them easy to store and transportwhile their widely recognized format ensures good liquidity.

When buying small gold bars, just make sure you are buying from a reputable dealerpreferably with third-party certification. If affordability is your main goal, you may also want to avoid bars with excessive branding or unique designs, as these can increase the price without adding intrinsic value.

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Split Gold Coins

For those who prefer government-issued gold but are concerned about the high price of one-ounce coins, split gold coins can be a great choice. Fractional coins are available in denominations of 1/10 ounce, ¼ ounce, and ½ ounce, and while they have slightly higher premiums than full ounce coins, they remain a profitable way to enter on the market without saving for months or years. .

These parts are also very liquidmeaning they can be easily sold or traded if necessary. If you’re considering purchasing fractional coins, just be sure to focus on well-known designs and mints to ensure you’re getting a fair market value.

Generic gold coins

Generic gold coins refer to coins minted by private companies rather than government currencies. These coins often have lower premiums than government-issued coins because they do not have the same collectible value. Examples include privately minted replicas of historic coins or generic bullion coins featuring simple designs.

Although generic coins don’t have the prestige of a government-issued coin, they offer excellent value for the weight of gold they contain. That said, it’s important to do your homework to avoid counterfeit products. You should also check the purity of the piece, which is usually listed as 99.9% or 24 karat gold.

Investment Grade Gold Jewelry

Gold jewelry is not just for decoration – it can also serve as a form of investment, especially if purchased wisely. With this route, be sure to opt for simple designs with high gold content, such as 18-karat or 22-karat pieces, to minimize additional costs associated with complex craftsmanship.

Countries like India and the Middle East have robust markets for investment-grade gold jewelry, often sold close to spot price. If you’re traveling to such areas, consider taking advantage of the lower premiums offered there.

Gold in bulk

For those who are willing to invest a larger amount, buy gold in bulk can significantly reduce overall costs. Dealers often offer discounts on larger purchases, whether you are purchasing several small coins or a single large bar. This approach allows you to spread premiums across a larger quantity of gold, thereby reducing your cost per gram.

When buying in bulk, be sure to work with resellers who offer purity and weight guarantees. You may also want to look for brokers that offer buyback programs in case you decide to liquidate your holdings in the future.

The essentials

Investing in physical gold tends to be expensive, but it doesn’t have to put a strain on your finances. There are many affordable options, like gold bars, fractional coins, or generic coins, that may be worth considering. With these gold assets, you can start small and gradually build your wealth in a stable, tangible form, allowing you to enjoy the lasting value of gold without spending too much.