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Both new and seasoned investors have been closely monitoring gold since the start of the year, and for good reason. For starters, the precious metal has long been prized for its unique benefits as an investment asset, including its potential to diversify portfolios and act as a hedge against inflation, both of which are crucial in today’s economic environment.
However, the surge in interest that has occurred since the start of 2024 can largely be attributed to gold’s impressive price performance. Early this year, gold prices began climbing, and over the last several months, gold prices have hit a handful of new record highs — even surpassing $2,400 per ounce in late May. Prices have retreated somewhat since then, but they’re still higher than where they started 2024.
And, when it comes to investing in gold, there’s no shortage of options to choose from. From gold exchange-traded funds (ETFs) and gold mining stocks to gold coins and jewelry, investors have a wide array of assets to buy into. However, 1-ounce gold bars stand out as one of the most accessible forms of gold bullion. For those new to gold investing or gold bullion, though, the process of buying 1-ounce gold bars can seem tricky — but it doesn’t have to be.
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How to buy 1-ounce gold bars this July
If you’re planning to invest in 1-ounce gold bars this July, here’s how to buy them:
Research current market conditions
Before making any investment, it’s crucial to understand the current state of the gold market. Gold prices may have stabilized somewhat from their May peak, but they still tend to fluctuate over the short term. So, if you want to buy in at a good price, be sure to keep an eye on the factors that could influence gold prices, such as inflation rates, geopolitical tensions and central bank policies.
Learn more about how the right gold investment could help protect your portfolio here.
Set a budget
You should also determine how much you’re willing to invest in gold. Remember that while 1-ounce bars are more affordable than larger denominations, they still represent a significant investment — especially now that the spot price of gold is $2,373.86 per ounce (as of July 10, 2024).
But you likely won’t be paying just the spot price when you purchase 1-ounce gold bars. You can expect to pay a premium of about 3% to 5% over the price of gold, so be sure to factor that in, too.
Choose a reputable dealer
Before making a purchase, do your homework and look for established, well-reviewed gold dealers. There are lots of online gold dealers to consider, but you can also purchase from local coin shops if you prefer face-to-face transactions. No matter what route you choose, though, it’s important to ensure the dealer is reputable and accredited.
Verify authenticity and purity
It’s important to verify the authenticity and purity of any 1-ounce gold bars you may purchase. So, look for those stamped with .9999 fine gold, which indicates 99.99% purity. Reputable manufacturers also produce bars with unique serial numbers and anti-counterfeiting features, and some dealers now offer bars with enhanced security features, such as holographic seals or microprinting.
Compare prices and premiums
Demand for gold bars is elevated right now, so it’s important to shop around to find the best deals. After all, while the base price of gold is universal, dealers charge different premiums. And, those premiums tend to be slightly higher when demand ticks up, so it’s worth comparing multiple sources if you’re buying in now.
Consider storage options
Before purchasing, you should also decide how you’ll store your gold bars. Home safes remain a popular choice for small quantities, but many investors will opt for allocated storage in secure vaults instead due to rising concerns about home security. Some online dealers offer integrated storage solutions, which can be convenient if you’re purchasing your gold bars online, but those solutions also come with ongoing fees.
Time your purchase
While timing the market perfectly is impossible, you can strategize your purchase. For example, it may benefit you to watch the price of gold closely and buy during the dips, as gold prices have been somewhat volatile recently. Using strategies like dollar-cost averaging — which is buying fixed amounts at regular intervals — can also help mitigate short-term price fluctuations.
Consider authentication services
For added peace of mind, you may want to consider using a third-party authentication service to verify the authenticity of any 1-ounce gold bars you’re planning to purchase. After all, counterfeit bars can be an issue — and that’s especially true right now, with gold prices as high as they are. Some companies also offer other services, like encapsulation services, which can be particularly valuable if you plan to resell your gold in the future.
The bottom line
Investing in 1-ounce gold bars can be an exciting way to diversify your portfolio and potentially hedge against economic uncertainties. And, by following these steps and staying informed about current market conditions, you can navigate the process of buying gold bars with confidence. Just remember that gold investing, as with all investments, comes with risks, so weigh those before buying in.