Different weights of gold
Gold is priced in different ways n various countries. For investment purposes you may need to know how much is an ounce of gold. Many English speaking countries, like the US, the UK and Australia use ounce to denominate the various units of weight, whereas gram is an international unit. Gold is usually measured in troy ounces which are slightly different from an ounce, as the latter is lighter than the troy ounce. A troy ounce is equal to about 31 grams of gold.
Premium on Gold bars
When you buy gold bars, the prices will naturally depend on how much is an ounce of gold at that time, or the spot price of gold. However, you may have to pay a premium over the spot price of gold, due to the manufacturing costs and also the profits for the dealers, and the shipping and insurance costs. In some countries, there might even be a tax on the purchase of gold. It is advisable for the investor to buy the highest bar weight, so that less premium can be paid per ounce. This is because as the price of the bar goes up, the premium on it comes down. But, in some cases, it is also preferable to buy the smaller gold bars, as it is easier to sell them when you need urgent liquidity.
It is always better to invest in gold bars, as the value of gold keeps increasing but the value of the flat currency associated with the bar, usually decreases as it cannot buy the same amount of goods and services that could be bought several years ago. Bars are accepted all over the world and make a safe investment, but you must purchase from reputed dealers and mints, and have a better understanding of your gold bar investment by finding out how much is an ounce of gold before investing in it.
Buying gold coins in various denominations
You can also invest in gold coins which are the oldest form of money known to man. Some of them are produced for collectors and others for investment. It can be used as a hedge against inflation. The Kruggerrand is a gold coin which has a very small premium, where the price is only a little above the bullion value of the gold. You can also buy gold coins in fractions of an ounce, such as a quarter, half, and even a tenth of an ounce. The value of your gold coin will depend on the troy weight and the spot price of gold in the market, and as such, they generally don’t have face value. In some cases a face value is minted on the coin but this is usually lesser than its actual value.