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The best gold bar sizes and weights to invest in, according to experts
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Although the pace of inflation has started to slow down, prices continue to rise, and interest rates remain high. Meanwhile, there’s continued economic uncertainty caused by issues such as geopolitical strife and upcoming elections. Against this backdrop, gold prices have reached record highs recently.
However, not all gold investments are the same. Not only do people have different motivations for investing in gold, such as portfolio diversification or trying to hedge against inflation, but investors also choose different ways to invest in gold. Some prefer gold stocks or gold ETFs for liquidity purposes, for instance, while others prefer to buy physical gold for more control.
Yet the choices for investing in gold don’t end there. If you decide to buy gold bullion, such as physical gold bars, there are different sizes and weights to consider, and that can affect areas like liquidity and price — so it’s important to understand which options may make the most sense for your portfolio.
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The best gold bar sizes and weights to invest in, according to experts
If you’re trying to decide the best weight and size of gold bullion to invest in, here are some scenarios to consider.
The case for gold bars smaller than one ounce
Some investors prefer small gold bars, particularly those weighing less than one ounce. Note that in the gold investing world, an ounce typically means a troy ounce, which at just over 31 grams is slightly more than a standard ounce that’s a little over 28 grams.
“The industry makes it somewhat confusing because typically smaller bars are weighed in grams and larger bars are weighed in troy ounces,” says Brandon Aversano, CEO and founder of Alloy.
Smaller gold bars can come in a variety of sizes, such as 1-gram, 5-gram and 10-gram, he adds.
You can also find 50-gram bars, for instance, though that might tip more into medium-sized bars, depending on your perspective.
In general, smaller gold bars, like those weighing less than an ounce, can make sense for those looking for an easier way to invest in gold.
“Small gold bars are easily transportable and highly liquid, which makes them great for buying and selling quickly. They also require less storage and are more readily available for purchase,” says Aversano.
However, this portability can come at a cost.
“It’s worth noting that bars smaller than one ounce often come with higher premiums, necessitating a balance between enhanced liquidity and flexibility with the higher cost,” says Andy Schectman, CEO at Miles Franklin.
Plus, smaller gold bars, because of their popularity, are more susceptible to counterfeiting, says Aversano.
Learn more about the benefits of gold investing here.
The case for 1-ounce gold bars
If you want a slightly larger gold bar, though still one that’s relatively small in the grand scheme of things, then you might opt for a 1-ounce gold bar.
“One-ounce gold bars boast very strong retail demand and liquidity, making them highly tradable assets. Their affordability also enables gradual accumulation, appealing to a much larger and more diverse investor base,” says Schectman.
These gold bars can also sit in a sweet spot in terms of pricing. While you do need to afford the overall price of an ounce of gold — the spot price is nearly $2,500 — you might pay lower premiums in comparison to smaller gold bars and gold coins that might just weigh a few grams. Premiums might still be higher than they are for larger gold bars, but that could be worth it.
“While investing in gold bars larger than one ounce may offer marginal savings, these savings are arguably not commensurate with the reduced demand and flexibility inherent in 10-ounce and kilo gold bars,” adds Schectman.
The case for gold bars larger than one ounce
As you move past 1-ounce gold bars, there can be a wide range of larger gold bars — some of which can still be easily transportable, while others are physically difficult to handle.
“Investors consider various sizes and weights of gold bars depending on their storage and investment capacity. Due to their large holdings, central banks tend to favor larger bars such as the Good Delivery bars, typically weighing 400 troy ounces,” says Bas Kooijman, CEO and assets manager at DHF Capital S.A.
“Other large investors and institutions also use smaller bars such as the one-kilogram bars. For individual investors seeking a balance between affordability and ease of storage, 100-gram bars are popular,” adds Koojiman.
Note, however, that these are still much larger than one ounce and thus cost several thousand if not tens of thousands of dollars to buy.
“Large gold bars are a solid long-term investment and are often purchased as a hedge against challenging macroeconomic conditions or geopolitical instability,” says Aversano. “While there is a higher cost to purchase overall, the premium on the cost is smaller because of the total amount of gold being purchased.”
Still, there are some possible drawbacks to consider.
“Due to the high value of each bar, larger gold bars are often held in depositories which carry a monthly fee. They are also more challenging to liquidate quickly,” he adds.
The bottom line
There are pros and cons to different gold bar sizes and weights. If you want more liquidity and lower overall cost, you might prefer a smaller gold bar. If you want to pay a lower per-ounce price and can afford more of an upfront investment, you might prefer larger gold bars. However, larger gold bars, such as those weighing several ounces or more, might prompt the usage of a depository, which can add fees but perhaps improve security.
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Sen. Thom Tillis says “the scope” of Helene damage in North Carolina “is more like Katrina”
As recovery missions and repairs continue in North Carolina more than a week after Hurricane Helene carved a path of devastation through the western part of the state, the state’s Republican Sen. Thom Tillis called for more resources to bolster the relief effort and likened the damage to Hurricane Katrina’s mark on Louisiana in 2005.
“This is unlike anything that we’ve seen in this state,” Tillis told CBS News’ Margaret Brennan on “Face the Nation with Margaret Brennan” on Sunday morning. “We need increased attention. We need to continue to increase the surge of federal resources.”
Hurricane Helene ripped through the Southeast U.S. after making landfall in Florida on Sept. 26 as a powerful Category 4 storm. Helene brought heavy rain and catastrophic flooding to communities across multiple states, including Georgia, South Carolina, Tennessee and Virginia, with North Carolina bearing the brunt of the destruction. Officials previously said hundreds of roads in western North Carolina were washed out and inaccessible after the storm, hampering rescue operations, and several highways were blocked by mudslides.
Tillis said Sunday that most roads in the region likely remained closed due to flooding and debris. Water, electricity and other essential services still have not been fully restored.
“The scope of this storm is more like Katrina,” he said. “It may look like a flood to the outside observer, but again, this is a landmass roughly the size of the state of Massachusetts, with damage distributed throughout. We have to get maximum resources on the ground immediately to finish rescue operations.”
Hurricane Katrina left more than 1,000 people dead after it slammed into Louisiana’s Gulf Coast in August 2005, flooding neighborhoods and destroying infrastructure in and around New Orleans as well as in parts of the surrounding region. It was the deadliest hurricane to hit the mainland U.S. in the last 50 years, and the costliest storm on record.
The death toll from Hurricane Helene is at least 229, CBS News has confirmed, with at least 116 of those deaths reported in North Carolina alone. Officials have said they expect the death toll to continue to rise as recovery efforts were ongoing, and a spokesperson for the police department in Asheville told CBS News Friday their officers were “actively working 75 cases of missing persons.”
On Saturday, the U.S. Department of Transportation released $100 million in emergency funds for North Carolina to rebuild the roads and bridges damaged by the hurricane.
“We are providing this initial round of funding so there’s no delay getting roads repaired and reopened, and re-establishing critical routes,” U.S. Transportation Secretary Pete Buttigieg said in a statement. “The Biden-Harris administration will be with North Carolina every step of the way, and today’s emergency funding to help get transportation networks back up and running safely will be followed by additional federal resources.”
President Biden previously announced that the federal government would cover “100%” of costs for debris removal and emergency protective measures in North Carolina for six months.
With North Carolina leaders working with a number of relief agencies to deal with the aftermath of the storm, Tillis urged federal officials to ramp up the resources being funneled into the state’s hardest-hit areas. The senator also addressed a surge in conspiracy theories and misinformation about the Biden Administration’s disaster response, which have been fueled by Republican political figures like former President Donald Trump.
Trump falsely claimed that Mr. Biden and Vice President Kamala Harris, his Democratic opponent in the November presidential election, were diverting funds from Federal Emergency Management Agency that would support the relief effort in North Carolina toward initiatives for immigrants. He also said baselessly that the administration and North Carolina Gov. Roy Cooper, a Democrat, were withholding funds because many communities that were hit hardest are predominantly Republican. Elon Musk has shared false claims about FEMA, too.
“Many of these observations are not even from people on the ground,” Tillis said of those claims. “I believe that we have to stay focused on rescue operations, recovery operations, clearing operations, and we don’t need any of these distractions on the ground. It’s at the expense of the hard-working first responders and people that are just trying to recover their lives.”
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