Buying gold is an excellent way to grow your wealth. People have been investing in gold bars for centuries, and the commodity remains a reliable option with stable global market values.
While you can invest in gold through virtual tools, owning tangible gold bars that you can see and feel offers a greater sense of security. If you’re new to buying precious metals, you may wonder how and where to buy gold bars in Michigan.
Explore the basics of buying gold, including gold bars, coins, and jewelry as an investment prospect, and why AU Precious Metals is an excellent choice.
Difference Between Gold Coins and Bars
Before buying gold, it may be helpful to understand the difference between gold bullion and coins.
Gold Bars (Bullion)
Gold bars, also known as bullion, are blocks of gold that come in ingot or bar form. Bullion is 99.5% to 99.9% pure gold and is recognized as legal tender. Many governments, including the United States, keep gold bullion as a safeguard against financial issues. Approximately 75% of America’s foreign reserves are gold.
Gold Coins
Gold coins offer another option for investing in gold. Also called numismatic coins, they often feature unique or commemorative designs that set them apart for collectors. For example, collective coins like the new Liberty Coin feature the first African American woman and are made of 99.99% 24-karat gold. Other gold coin options include rare coins and The American Eagle gold bullion coin.
AU Precious Metals is a reputable coin dealer in Michigan. As a local coin dealer, we strive to keep various valuable coins on hand for our customers to choose from to grow their collections and wealth.
How Much are Gold Bars?
The cost of gold bars varies based on the market value of gold, which fluctuates daily. It can also vary depending on the seller and the type of gold you purchase. As of October 21, 2022, the live spot price of gold is $1,638.42 per ounce. If you were to buy a 1-ounce bar of gold, you would likely spend around $1,638.
What to Look for When Buying Gold Bars
It’s crucial to know what elements to consider when buying gold bars. For most investors, the most important factors are the gold’s purity, size, and manufacturer.
Purity
Purity refers to the amount of pure gold in a bar. Investment-quality bullion should contain at least 99.5% gold. Look for a 995.0 stamped onto the front of the bar to verify its purity.
Size
Consider the size of the gold bar you want to purchase. Gold bullion comes in different sizes, such as 1-ounce and 10-ounce bars. If you plan to sell the gold, you may choose the smaller option as it may be easier to sell off. You can also opt for small pieces of gold jewelry or coins as an investment.
Manufacturer
Gold bullion should feature a stamp with the manufacturer or mint’s name on its face. Trustworthy mints include Perth Mint, Royal Canadian Mint, and Valcambi.
How to Choose a Reputable Gold Dealer
When choosing a gold seller, vetting the retailer is important. Opting for a retailer with a physical store is preferable to buying from an unknown seller in another location or online. In addition to buying gold from a storefront location, look for a dealer that:
- Guides you through the investing process
- Carries a variety of options like gold coins and gold bullion
- Offers excellent customer service and helpful knowledge
- Uses X-ray technology equipment to vet gold pieces coming into the store
AU Precious Metals is a professional, trusted gold dealer with two locations in Michigan. Our knowledgeable, friendly staff enjoy helping our customers with the gold buying process and helping you grow your wealth.
How to Store Your Gold Bars
Storage is always an issue for tangible assets like gold and silver coins, bullion, and bars. While gold is the most non-reactive of all metals, bullion often has trace amounts of metals like nickel which can corrode when exposed to humidity.
Gold bullion, bars, and coins are also subject to theft, so it is crucial to store your gold assets carefully to protect your investment.
You have two options to store your gold bars: in an off-site vault such as a bank safety deposit box or in your home. If you store your gold bars at home, ensure that you keep them in a vault or safe with a dehumidifier or desiccant inside to manage moisture.
Do not store gold and silver bullion together, as you increase the risk of tarnish and corrosion.
Do You Need Insurance for Your Gold?
Buying insurance for physical gold that you plan to store in your home or a bank’s safety deposit box is a wise idea. Deposit boxes aren’t covered by federal insurance, and if your home suffers property damage, your gold is only covered up to your homeowner’s insurance policy limits, typically around $200.
Are Gold Bars a Good Investment?
Gold bars are an excellent investment as part of a balanced portfolio. It typically offers some of the highest liquidity in the commodities market. And while gold prices can be mildly volatile short-term, the overall price tends to steadily increase over time.
Investing in gold as a tangible asset can be a safe haven against the volatility usually seen in stocks and currencies and help you hedge against inflation. This is because gold is relatively immune to interest rate decisions, and its scarcity helps to control supply and demand.
However, investing in gold is not without risk. One of the biggest risks is purity concerns. Gold is measured in karats (K), with 24K representing the highest purity. To ensure you receive the highest purity gold bullion, buy through a reputable dealer like AU Precious Metals.
Alternatives to Gold Bars
While gold bars are an excellent investment opportunity, a diversified tangible investment portfolio can lower the risk in a volatile market. At AU Precious Metals, we buy and sell numerous alternatives to gold bars, including:
Palladium
Palladium bullion, bars, and coins are among the rarest earth metals and are the metal typically used to manufacture fuel cells. The value of palladium is normally high because the demand often outstrips the supply.
Rhodium
Rhodium has fewer practical applications than other precious metals; however, it forms an essential part of the manufacturing process for catalytic converters. The value of rhodium surged 30% in 2020, and despite market fluctuations in the years following, rhodium has remained a worthwhile investment.
Silver
Although silver is not as rare as many other precious metals, it remains an excellent way to hedge against inflation. Silver bullion and silver coins are also subject to tax exemptions in Michigan if they exceed 90% purity. We use cutting-edge X-ray fluorescence to evaluate the silver’s purity before we sell it to investors.
Invest in Gold With AU Precious Metals
AU Precious Metals are a trustworthy gold and silver dealer in Michigan. We buy and sell gold and silver bullion, coins, and jewelry and offer a wide selection of precious metal investment options to help you build your portfolio. We sell high-value bullion at the lowest prices in the area.
Contact us today to learn more about the gold buying or selling process, or stop into our offices in Novi or Rochester to speak to us in person.