No matter what the economic landscape looks like, most savvy investors will explore diverse avenues to. 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 investingin 2023, due in large part to gold being a reliable investment that — like long-term and — when used to .
That said, there are lots of different gold assets to consider, fromto and . But one of the more popular options is , which are available in different sizes, including 1-gram and . If you’re considering a gold bar purchase this year, though, do 1-ounce or 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 ofis the accessibility and affordability these smaller bars offer. By buying , 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 makefor 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 offerand flexibility and 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.
For investors looking towithout 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. 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.
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,. 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,have been considered . 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.
While 1-ounce bars may have higher upfront costs due to the higher cost of buying in, they often come with. 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.
Investors holding 1-ounce gold bars may also benefit from easier. 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:
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.
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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