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1-gram vs. 1-ounce gold bars: Which investment is better in 2024?
No matter what the economic landscape looks like, most savvy investors will explore diverse avenues to safeguard their wealth. What that typically means is reducing the risk from more volatile investment assets, like stocks or real estate, by adding more stable investments to the mix.
And, one of the safer alternative investment assets that has grown in popularity recently is gold. In fact, gold investing hit an 11-year high in 2023, due in large part to gold being a reliable investment that offers unique benefits — like long-term price stability and inflation hedging — when used to diversify portfolios.
That said, there are lots of different gold assets to consider, from gold bullion to gold stocks, gold ETFs and gold IRAs. But one of the more popular options is gold bars, which are available in different sizes, including 1-gram and 1-ounce gold bars. If you’re considering a gold bar purchase this year, though, do 1-ounce or 1-gram gold bars make more sense right now?
Explore the top options you have for gold investing here.
1-gram vs. 1-ounce gold bars: Which investment is better in 2024?
The right choice between 1-gram or 1-ounce gold bars depends on unique factors, like your investment goals, budget, portfolio diversification needs and more. However, it can help to weigh the potential benefits and downsides of each option to help determine which makes the most sense for you.
The pros of investing in 1-gram gold bars
When it comes to investing in 1-gram gold bars, there are some potential upsides to consider, including:
Accessibility and affordability
One of the most significant advantages of 1-gram gold bars is the accessibility and affordability these smaller bars offer. By buying this weight of gold bars, investors with limited capital can enter the gold market without committing to a substantial upfront cost. For example, it’s easy to find 1-gram gold bars for $75 to $100 right now, though the prices can vary significantly by gold dealer.
Still, with the spot price of gold hovering above $2,000 per ounce, the lower price of a 1-gram gold bar offers a less expensive way to add gold to your portfolio. This can make 1-gram bars an attractive option for those who are just starting their investment journey or wish to diversify their portfolio without a significant financial commitment.
Learn more about how you can get started with gold investing today.
Liquidity and flexibility
Smaller denominations of gold bars also offer increased liquidity and flexibility and 1-gram gold bars are no exception. One of the big advantages to this type of bar is that they can be easily traded, sold or used for transactions when needed, which isn’t always the case with larger bars — which have a higher price point and therefore can limit the buyer pool.
This liquidity can be particularly advantageous during times of market volatility, allowing investors to respond swiftly to changing economic conditions.
Portfolio diversification
For investors looking to diversify their portfolios without allocating a large portion of their assets to gold, 1-gram bars provide an ideal solution. These smaller increments allow for a more nuanced and diversified investment strategy, reducing exposure to risks associated with larger, more concentrated holdings.
The cons of investing in 1-gram gold bars
There are also a few downsides to consider when investing in 1-gram gold bars, including:
Premiums and transaction costs
While 1-gram gold bars have lower upfront costs, investors should be mindful of the premiums and transaction costs associated with these smaller denominations. In some cases, the percentage markup on 1-gram bars can be higher than that of larger bars — and buying smaller denominations could also mean losing out on potential bulk discounts offered by gold dealers. So, it’s crucial to factor in these costs when assessing the overall return on investment to make sure it’s the right move for you.
Storage challenges
Investors who accumulate a significant quantity of 1-gram bars may also face storage challenges. Storing a larger number of smaller bars can be cumbersome and may require additional security measures — and, in turn, increased storage or insurance costs. This consideration becomes more relevant for investors with long-term holding strategies, who may find the storage challenges to be a significant downside over time.
The pros of investing in 1-ounce gold bars
If you’re wondering whether 1-ounce gold bars make more sense to invest in, here are a few potential upsides to consider:
Store of value
Historically, 1-ounce gold bars have been considered a reliable store of value. Their larger size allows investors to hold a considerable amount of wealth in a single, tangible asset. During times of economic uncertainty, the perceived stability and intrinsic value of 1-ounce bars can be a reassuring factor for investors, adding to the allure for investors.
Lower premiums
While 1-ounce bars may have higher upfront costs due to the higher cost of buying in, they often come with lower premiums compared to smaller denominations. This means that, proportionally, investors pay less over the spot price for larger bars. For those with a long-term investment horizon, lower premiums can contribute to a more favorable return on investment.
Easier storage
Investors holding 1-ounce gold bars may also benefit from easier storage solutions. A smaller quantity of larger bars can be more conveniently stored, reducing the logistical challenges associated with safeguarding a sizable gold investment.
The cons of investing in 1-ounce gold bars
There are also a few downsides to consider before investing in 1-ounce gold bars. These include:
Entry barriers
The higher initial investment cost required for 1-ounce bars may pose a barrier for some investors, especially those with limited capital. This can limit accessibility and may not be suitable for those seeking a more modest entry into the gold market.
Less flexibility
Larger denominations also offer less flexibility in terms of liquidity. For example, selling a portion of a 1-ounce gold bar may involve more significant transactional complexities compared to smaller increments — and the higher buy-in point for a full 1-ounce gold bar may further limit the pool of buyers. This reduced flexibility may be a consideration for investors who value quick and agile responses to market conditions.
The bottom line
The choice between 1-gram and 1-ounce gold bars this year ultimately depends on individual investor preferences, financial goals and risk tolerance. Both options have their merits, and understanding the specific advantages and considerations associated with each is crucial for making informed investment decisions. Ultimately, investors should align their choices with their broader financial objectives for a well-rounded and resilient portfolio.
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New documentary explores the private life of “Superman” icon Christopher Reeve
Long before comic book characters dominated movie screens, actor Christopher Reeve made the world believes in superheroes with the 1978 classic “Superman.”
Reeve died in 2004, nearly a decade after an accident re-shaped his life. “Super/Man: The Christopher Reeve Story” is using interviews with family and friends and never-before-seen home videos to explore his real-life heroism.
Reeve started his career on the stage, studying at the prestigious Juilliard School and living with comedian Robin Williams. The pair had a friendship that was “more like a brotherhood,” said Reeve’s son Matthew. Reeve was in awe of Williams’ energy and versatility, Matthew Reeve said, but audiences quickly clued into Reeve’s own star power when he took on the role of the Man of Steel.
To his children, though, he “was just dad,” Matthew Reeve said. The documentary explores how Matthew Reeve and his sister Alexandra Reeve Givens grew up watching their dad take the stage as Superman. “Super/Man” also reveals their heartbreak over their parents’ breakup and the joy they found when Reeve re-married. He tied the knot with Dana Reeve in 1992, and the pair welcomed another child, William Reeve, later that year.
“Dana was sunshine,” Alexandra Reeve Givens recalled. “She just brought joy with her wherever she was and could find it even in the darkest moments.”
Those dark moments came suddenly, when in 1995, a near-fatal horseback riding accident left Reeve paralyzed from the neck down. The documentary allows viewers to see, for the first time, what went on out of the public’s view. Reeve can be heard talking about how he “ruined (his) life and everybody else’s,” but in a touching moment, old friend Robin Williams is seen visiting him in the hospital.
“Robin showed him ‘Hey, you’re still you,'” Alexandra Reeve Givens said. “‘You still have this foundation of friendship and people around you, who adore you. And you’re going to find those fun moments in life again.'”
That support from friends and family re-ignited Reeve’s legacy of activism. He made appearances at the Democratic National Convention and the 68th Academy Awards in 1996, about a year after the accident. Matthew Reeve said watching his father address his industry peers at the Oscars was “one of (his) most proud moments.”
“It was just a production for him to get out of bed every morning, let alone get across the country and go out in public for the first time,” Matthew Reeve said. “It was a big deal. It was a big deal to him, but it was also a big deal to the entire disability community. We stayed up in London till like three in the morning to watch that live. It’s a fond memory.”
Reeve also went on to launch what would become the Christopher and Dana Reeve Foundation, which is dedicated to advancing research into spiral cord injury and help individuals and families impacted by paralysis. It was his dad’s mission to find a cure, Matthew Reeve said, while his stepmother wanted to focus on improving the lives of paralyzed people and their families. The foundation and Reeve’s platform helped bring unprecedented attention and funding to spinal cord injury research.
Reeve even kept acting and realized his lifelong dream of directing with the 1997 HBO movie “In the Gloaming.” Reeve died in 2004 from heart failure at 52.
“There is a huge amount of great actors and actresses out there, where their filmography might be amazing and what they achieve on a cultural level might be amazing, but have they actually achieved anything really as a human that moves the needle for our society?” said filmmaker Ian Bonhote, who made the documentary with Peter Ettedgui. “And Chris has done both things.”
“Super/Man: The Christopher Reeve Story” will open in theaters on Friday, Oct. 11.
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