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4 expensive mistakes to watch for when buying 1-ounce gold bars, experts say
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Gold has hit several new highs so far in 2024. The trend started in March when the price of gold hit a record high of $2,169 per ounce. Then, in late May, the price of gold climbed to another high of $2,450 per ounce. And, while the price of gold has cooled recently, with today’s price closer to $2,300 per ounce, the cost of gold per ounce is still up several hundred dollars from the start of the year.
The price of gold isn’t the only draw, though. The precious metal also offers unique benefits to investors, such as acting as a hedge against inflation. And, there are many gold investment options to choose from, including gold individual retirement accounts (IRAs), gold stocks or gold coins. But one in particular that may be worth considering right now is 1-ounce gold bars, as they are affordable and relatively accessible for most investors.
But despite the popularity of 1-ounce gold bars, experts say there are some expensive mistakes to avoid when buying in. Here’s what you should know.
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4 expensive mistakes to watch for when buying 1-ounce gold bars, experts say
Be sure to keep an eye out for these big missteps if you’re going to add 1-ounce gold bars to your portfolio:
Not purchasing gold bars from a reputable source
One of the most costly mistakes you can make when buying a 1-ounce gold bar is getting one from a less-than-reputable source. Doing so could result in losing some or all of your hard-earned money.
That’s because gold bars can be counterfeit, and with today’s high gold prices, there’s a big incentive to do so. So, if you’re not ensuring that your gold bars are coming from a reputable source, you’re putting yourself at risk of big monetary losses.
“Counterfeiting is a real problem in the precious metals industry,” Brett Elliott, director of marketing at American Precious Metals Exchange APMEX, says. “Gold is often a target due to its high value. If you never buy gold from an unknown seller, especially one asking for less than gold’s spot value, then you will never be scammed.”
You can avoid potential scams by checking a company’s accreditation status, says Alex Ebkarian, COO and co-founder of precious metals dealer Allegiance Gold.
Ebkarian recommends looking for dealer accreditation from consumer protection agencies like the Better Business Bureau or Business Consumer Alliance. You may also want to look at other types of information about the dealer, too.
“Every state offers a free search to check registration dates and compliance with state requirements,” Ebkarian says.
Find out more about the big benefits a gold investment could offer you today.
Not shopping around
Another potentially expensive mistake is not shopping around for the best deal. You should shop around to get price quotes, experts say, and if you’re buying gold bars online, make sure the price includes shipping. Otherwise, the shipping costs could add a lot to the cost of your purchase.
In general, experts say you shouldn’t pay much more than $100 over the spot price of gold for 1-ounce bars. And, depending on the manufacturer and other factors, you may be able to buy 1-ounce gold bars for between $20 to $30 over the spot price.
According to Elliot, you may want to avoid buying from pawnshops, which he says often have the worst deals on 1-ounce gold bars.
Buying bars without seals
Purchasing a gold bar without a seal could also be a mistake, says Ebkarian.
“While you can buy a non-sealed bar and pay less than the normal market price, it’s very important for the bar to be sealed to give the confidence of the new buyer when the time comes to sell,” Ebkarian says. “The most reputable private mints provide a carded gold bar with an assayer number in the back for authentication purposes.”
Not researching the dealers to sell to
Before you invest, Nick Fulton, managing partner of USA Pawn of Mississippi, recommends finding a dealer who pays the most for 1-ounce gold bars. That way, you can get the most possible for your gold bars if you need to sell in a pinch.
“Depending on the premium, the buyer will be upside down from the start,” says Fulton.
Fulton recommends finding a dealer that pays as close to the gold’s spot price as possible.
The bottom line
Before you purchase a 1-ounce gold bar, it’s crucial to do your research and shop around. Doing these two things can help you avoid scams and get a good deal from a reputable dealer. And, doing that while avoiding the big mistakes outlined above may be the best approach to your investment into 1-ounce gold bars.
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China school knife attack kills at least 8, wounds 17, days after fatal car attack killed dozens
Eight people were killed and 17 others wounded Saturday in a knife attack at a vocational school in eastern China, and the suspect — a former student — has been arrested, police said.
The attack took place in the evening at the Wuxi Vocational Institute of Arts and Technology in the city of Yixing in Jiangsu province, police in Yixing said in a statement, confirming the toll.
This was the second incident of fatal violence in China in a matter of days.
Earlier this week, a 62-year-old man killed 35 people and wounded more than 40 more when he rammed his small SUV into a crowd in the southern city of Zhuhai. The suspect was discovered in the car with a knife, with wounds to his neck thought to be self-harm injuries, according to the police.
Police said the suspect in the knife attack was a 21-year-old former student at the school who was meant to graduate this year, but failed his exams.
“He returned to the school to express his anger and commit these murders,” police said, adding that the suspect had confessed.
In Yixing, police said emergency services were fully mobilized to treat the wounded, and provide follow-up care for those affected by the attack.
Violent knife crime is not uncommon in China, where firearms are strictly controlled, but attacks with such a high death toll are relatively rare.
In recent months, there has been a spate of other attacks.
In October in Shanghai, a man killed three people and wounded 15 others in a knife attack at a supermarket.
And the month before, a Japanese schoolboy was fatally stabbed in the southern city of Shenzhen, which borders Hong Kong.
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Oklahoma attorney general says state schools superintendent cannot mandate students watch prayer video
The Oklahoma attorney general’s office responded after the state’s education superintendent sent an email this week to public school administrators requiring them to show students his video announcement of a new Department of Religious Freedom and Patriotism. In the video, he prays for President-elect Trump.
Ryan Walters, a Republican, announced the new office on Wednesday and on Thursday sent the email to school superintendents statewide. The new department will be within the state’s Department of Education. Walters said it would “oversee the investigation of abuses to individual religious freedom or displays of patriotism.”
“In one of the first steps of the newly created department, we are requiring all of Oklahoma schools to play the attached video to all kids that are enrolled,” according to the email. Districts were also told to send the video to all parents of students.
In the video, Walters says religious liberty has been attacked and patriotism mocked “by woke teachers unions,” then prays for the leaders of the United States after saying students do not have to join in the prayer.
Sue Ogrocki / AP
“In particular, I pray for President Donald Trump and his team as they continue to bring about change to the country,” Walters said.
The office of state Attorney General Gentner Drummond issued a statement Friday saying Walters has no authority under state law to issue such a mandate.
“Not only is this edict unenforceable, it is contrary to parents’ rights, local control and individual free-exercise rights,” said the attorney general’s office spokesperson Phil Bacharach.
Multiple school districts have also said they had no plans to show students the video.
Walters, a former public school teacher elected in 2022, ran on a platform of fighting “woke ideology,” banning books from school libraries and getting rid of “radical leftists” who he claims are indoctrinating children in classrooms. He already faces two lawsuits over his June mandate that schools incorporate the Bible into lesson plans for students in grades 5 through 12. Several school districts have previously stated that they will disregard the mandate.
One of the lawsuits also notes that the initial request for proposal released by the State Department of Education to purchase the Bibles appears to have been tailored to match Bibles endorsed by now President-elect Donald Trump that sell for $59.99 each.
Earlier this week, Walters announced he had purchased more than 500 Bibles to be used in Advanced Placement government classes. The education department that the 500 Bibles are “God Bless the USA Bibles” and were ordered Thursday for about $25,000. They will arrive “in the coming weeks,” the department said.
