Buy Gold in Small Quantities

Due to the high price of gold, the majority of buyers are most interested in smaller quantities, at least to start. Contrary to popular belief, just about anyone can invest in gold, even if they only have a small amount of money to spend. With silver, the smallest sizes of bars and coins are usually 1 oz., but gold is very different in this aspect. With amounts as small (or smaller than) 1 gram being readily available, gold can be had in just about any size imaginable.

Bars are the most optimal and common choice for anyone who is looking to buy a little bit of bullion. The reason for this is that rounds and coins are almost exclusively produced in amounts that range from 1/1o oz. and up. You may be able to locate the random gram coin or round, but they are far and few between. Plus, gold bars will eliminate most premiums that are typically affixed to coins.

Prices of Small Amounts of Gold

For the most part, the smaller gold items tend to have the higher relative premiums, at least in terms of percentage. The reason that this happens is because it gives incentive to the mints and dealers to carry lower weight products. It is worth noting that large orders of smaller weight gold items will yield significant discounts. The highest premiums in gold are found when someone purchases just one piece of gold that weighs a gram or two. This is because companies will not make money off of the volume of the sale, so they are forced to sell at a higher mark up to ensure that they make a little bit of profit.

As a general rule of thumb, 1 gram bars of gold cost about 1/25th the price of a full ounce of gold. As mentioned previously, bulk orders will help to trim down on the cost. If you simply want to start off with your collection or investment, this is still the best item for you to purchase. Yes, there are some slight added costs that are added to them, but there is no way around this, and it is definitely worth it.

Making Small Investments in Gold

One of the best reasons to start off with a small investment is that it will ensure that very little of your money is at risk. While gold is undoubtedly going to stay on a long term upward trend, there is a very real possibility that it will experience some retractions in the short run. You should never buy more gold bullion than you are comfortable with. A common mistake that investors make is spending more on gold than they are realistically able to. Gold is a great way to replace your paper money in exchange for something that has true value, but you still need to have some paper currency for your other payments.

If you end up deciding to sell your gold at any point in time, a small amount will be very easy to unload. There are some dealers who will be unable or unwilling to buy significant quantities of gold, if only because they might not be able to re-sell it in a timely manner. With a few grams, however, they know they can sell it again in a reasonable amount of time. All in all, small quantities of gold will cost you virtually nothing when all is said and done and they are a great way to get into and familiar with the gold market.