CBS News
UnitedHealthcare CEO shooting considered targeted attack, police say
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
CBS News
Former Abercrombie & Fitch CEO Mike Jeffries in court
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
CBS News
Do 1-ounce gold bars make sense amid gold’s price recovery?
Gold has been on an impressive trajectory over the past year, starting 2024 at $2,063 per ounce before launching into a remarkable upward climb. The precious metal then set numerous price records throughout the year, eventually reaching an all-time high of over $2,736 per ounce in late October. This dramatic price increase brought new investors to the precious metals market who were eager to participate in gold’s historic run.
Things changed in early November, though, when the market experienced a sustained correction, with prices pulling back to trade closer to $2,600 per ounce. Right now, though, both the demand and the price of gold are climbing again, with gold trading at just under $2,700 per ounce (as of December 10, 2024). So while many investors made the prudent move to purchase physical gold during the recent dip, some investors are now wondering if they’ve missed their opportunity to buy in at a discount.
For those considering an investment in physical gold, particularly 1-ounce gold bars, the key question is whether these smaller units still make sense at current price levels. Let’s examine the advantages and drawbacks of investing in 1-ounce gold bars in today’s market.
Explore the unique benefits of gold investing now.
Do 1-ounce gold bars make sense amid gold’s price recovery?
While gold bars come in a wide range of weights, 1-ounce gold bars have long been a popular choice for investors who are seeking a manageable and flexible way to own physical gold. After all, these bars offer several advantages that make them attractive in a recovering market — even with gold prices climbing.
The most obvious advantage is perhaps their affordability. Larger gold bars become increasingly expensive, but 1-ounce bars provide a more manageable entry point into the gold market. At current prices, investors with limited budgets can start by adding a single ounce of gold to their portfolios rather than committing to a larger, more expensive purchase.
These smaller bars also offer excellent flexibility. Investors can buy in gradually over time, averaging their purchase price rather than investing all at once. When it comes time to sell a portion of their gold, having physical gold in 1-ounce bars makes it easier for investors to liquidate. These small bars make it simple to sell what’s necessary rather than being forced to sell a larger amount.
The market for 1-ounce bars tends to be very liquid as well, meaning these bars are usually easy to buy and sell. This liquidity becomes particularly valuable during periods of price volatility, as investors can more easily adjust their positions or take profits when desired.
Storage is another practical benefit of 1-ounce bars. Thanks to their small size, these gold bars are easy to store securely at home or in a safe deposit box. As gold prices rise, the logistics of storing larger quantities of gold become more complicated and expensive, making smaller units more practical.
While 1-ounce bars typically carry a higher premium per ounce than larger bars, this premium also becomes less significant in a rising market. Dealers usually charge a percentage markup over the spot price of gold, so when prices are higher, the relative difference in premiums between large and small bars often narrows.
Find out how to add gold to your portfolio today.
What to consider before buying 1-ounce gold bars
Despite the advantages, there are also a few factors worth considering before investing in 1-ounce gold bars at current price levels. For starters, the timing matters. While gold is traditionally viewed as a long-term investment, buying near price peaks can reduce your potential returns in the short term, so you may want to consider averaging your purchases over time rather than investing all at once.
It’s important to be aware of the dealer premiums tied to these gold bars, too. Smaller bars often carry higher premiums above the spot price of gold compared to larger ones, so it can pay off to shop around and compare prices from multiple reputable dealers. Premiums can vary significantly, and finding a competitive price becomes even more important when gold prices are high.
There are also risks to buying 1-ounce gold bars during a price recovery. Because gold prices are influenced by global events, economic indicators and market sentiment, they are inherently volatile over the shorter term. As a result, buying during a peak or upward trend could result in short-term losses if prices decline.
Gold’s long-term performance can also lag behind equities or other asset classes during periods of strong economic growth, so think about your investment goals. If you’re buying gold as a long-term hedge against inflation or economic uncertainty, current price levels may be less important than establishing your position. However, if you’re hoping for quick gains, buying at higher prices increases your risk.
The bottom line
For investors who are seeking a tangible, direct investment in gold, 1-ounce bars remain a solid choice — even amid gold’s price recovery. Their accessibility, liquidity and suitability for incremental investments make them ideal for those aiming to hedge against inflation or diversify their portfolios. However, it’s crucial to approach any gold investment with clear objectives. If your goal is to build long-term wealth or safeguard your assets during economic turbulence, 1-ounce gold bars can play a pivotal role. On the other hand, if you’re looking for quick returns, you may want to explore alternative investment options like gold ETFs or mining stocks instead.
CBS News
Kroger’s $24.6 billion purchase of Albertsons halted by federal judge
A federal judge on Tuesday blocked Kroger’s $24.6 billion acquisition of Albertsons, ruling that the proposed union would lessen competition for grocery shoppers.
The decision by an Oregon court found in favor of the Federal Trade Commission, which had argued the deal would violate antitrust law.
— This is a developing story.