What’s the Difference Between Gold Bar, Bullion, and Ingot?
As you work on your research into gold investments and which one might be right for you, you may start coming across some terminology for different types of gold. They include gold bars, gold bullion, and gold ingot. Knowing the difference can help you decide which is right for you and your situation when purchasing physical gold. Keep reading to learn more about the difference between gold bar, bullion, and ingot.
Bullion is a general term when referring to precious metals, such as gold, silver, or platinum that have been accounted for in units rather than in their natural form. Bullion is also recognized as being at least 99.5% and 99.9% pure and can come in many forms. Essentially, gold bullion is any formed, refined, and stamped piece of gold.
Forms of bullion include:
Gold bars are a form of gold bullion and one of the most popular ways of purchasing it. Who doesn’t love the look of a beautiful gold bar? As simple as gold bars might seem, there are actually many different forms, brands, and types of gold bars you can purchase.
- Cast gold bars. Cast gold bars are exactly what they sound like — gold that has been turned into liquid and poured into a cast to create a certain shape and size. This is the most cost-effective way to purchase gold bars because they are simple and easy to make. However, they contain blemishes and are not as pretty as classic minted bars.
- Minted gold bars. This type of gold bar is the most beautiful to look at, and even comes with a package to ensure its beautiful, shiny finish is kept intact (and if you remove this packaging, the value decreases). Instead of being molded like cast gold bars, they are cut which allows for their more beautiful look.
- Traditional weight. Gold is measured and sold in troy ounces and grams in increments of 1, 5, 10, 20, 50, and 100 grams. One troy ounce is about 31 grams. You do not have to report gold purchases to the government (except profits on what you sell), and you are only limited by your budget and your desire.
In the simplest terms, a gold ingot is a type of gold bar. An ingot is the name of the mold that the gold is poured into to create the gold bar. Gold ingot is different from gold bars because they are much larger than traditional gold bars, and are not made through the same minting and stamping process as regular gold bars. In addition, gold ingots are required by the LBMA to contain 99.5% pure gold, just like regular gold bars.
Think of it this way: Gold ingots are the very large version of gold bars. It is not common for a typical investor to have a gold ingot. The London Good Delivery Bar, a popular gold ingot, weighs in at 400 troy ounces. As of this blog writing, one London Good Delivery Bar is worth $756,641.25 — not including any dealer fees.
Investing in Gold
Aside from gold bars, gold bullion, and gold ingots, there are also gold IRAs and exchange-traded funds, and futures contracts. When it comes to finding what works best for you when investing in gold, it can help to talk to an expert. Learning more about your goals, your situation, and your budget can better help determine what is the best type of gold to invest in.
Why Invest in Gold?
Gold is the perfect way to stabilize and protect your savings. Whenever the economy goes down, the price of gold goes up. Gold can be used as a reserve currency, commercial finance tool, and personal asset — and nobody has to know you own it.
Gold will always have value. In its 3000-year history, it has never been worth zero, it is not vulnerable to manipulation or devaluation by the government or Central Bank. It is rare and in limited supply, is globally recognized, accepted, and traded, and can outperform most stocks including high-flying technology stocks, bonds, equities, and commodity markets.
About Priority Gold
Whether you want gold coins, gold bars, or are able to purchase a gold ingot, gold is a must-have asset for every investor. The best part about investing in gold is that it takes no special expertise. However, if you are ready to invest in gold to protect your savings and secure your future, we can help.
Priority Gold is one of the most trusted precious metals dealers in the United States with BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink.
We specialize in providing precious metals investment services with Security, Liability, and Great Convenience for customers. Our team is committed to helping to streamline their precious metals purchases at a fair price, selecting the right precious metals portfolios, and meeting their important financial objectives.
We offer Free Storage for qualifying Gold & Silver IRA accounts, a fast & easy gold buying process, and smooth IRA Transfer. And gold shows up on schedule. Priority Gold guarantees the highest standards of customer service, which comes with honesty, professional conduct, and the Ethical Code of Business.
For more information, visit us at prioritygold.com