Can You Invest With 5 Gram PAMP Suisse Gold Bars?
The gold price is currently near $1,300 per ounce and will only go higher over time if history is a guide. And if the US dollar should weaken dramatically, it will go a lot higher. One-ounce gold coins such as Gold Candian Maple Leafs or American Eagles, along with bars are already difficult to afford for many people. That is why the popularity (and availability) of gold in smaller units is rising.
5-gram gold bars are a good example. These bars, the equivalent of just 0.16 troy ounces, cost a fraction of what a standard 1-oz bar does. That makes them accessible to investors with very modest budgets. Take a look at all our gold for sale!
Some argue that in periods of very high demand for metal, smaller units may outperform by virtue of this broader appeal. Order a Swiss gold bar today!
In any event, it makes sense to include a variety of sizes in any gold holding. When it is time to sell metal, the investor will be able to choose exactly the quantity needed. In the event metal is needed for barter and trade, having the right denomination to trade with may be important.
5 Gram Gold Bar Premiums
Investors who buy gold bullion pay what is called the “premium” in addition to the market price of the metal. This premium represents the cost of fabricating the item, shipping costs, the wholesale premiums the dealer may have paid to acquire the item and the dealer’s profit.
There are premiums associated with both coins and bars, but it will vary from item to item depending upon size and type. For example, coins tend to carry higher premiums than bars. Order quantity is another variable. As a rule, larger order quantities mean lower premiums.
The 5-gram gold bar carries a bit higher premium as a percentage of the gold content due to its size. The machine time and labor involved in fabricating smaller bars is similar to that required for larger bars. The good news is that smaller bars also command a bit higher premium when it is time to resell them.
The 5-gram gold bar is a popular choice for collectors, investors, and people looking for a more unique gift. The bars come in an attractive package with the bar in a clear plastic hold at the center of an assay card with details including the manufacturer, weight, purity and serial numbers.
5-Gram Gold Bar vs. Gold Bullion Coins
The 5-gram gold bars for sale offer some differences versus gold coins that investors should consider. The most obvious difference is the appearance. The gold bars are rectangular in shape rather than round. Unlike coins, they typically are not stamped with the year of issue. Many bars will carry the manufacturer’s logo but often do not feature other images such as faces or animals which are commonly struck on coins.
Gold bars are also made by private mints and refiners rather than a government mint. They are not legal tender for some face value amount. Some people value coins because of their status as legal tender and because their weight and purity is guaranteed by the government issuing them.
But these distinctions are less meaningful than many people imagine. The face value amount is far less than the value of the metal content in precious metal coins. For example, the $50 gold American Eagle from the US Mint contains 1 oz of gold which is currently valued at 26 times its face value (around $1,300). It is safe to say the coin will never be spent for its face value, even if that is technically possible. The government guarantee of weight and purity is not a major factor when private mints and refiners offer their own guarantees.
The packaging of bars versus coins is also quite different. Coins generally do not come packaged in the assay card holder, while bars typically do. The package itself is the certification of weight and purity.
Are There 5-Gram Gold Bar Investment Opportunities?
5-gram bars are an excellent addition to any holding of physical metal. As long as the value of fiat money, including the US dollar, keeps falling these bars will protect your wealth and savings. In times of crisis or uncontrolled inflation, these bars can be expected to outperform other conventional asset classes. Gold has been, and always will be, a go-to asset for investors who seek safe-haven.
The 5-gram size is particularly well suited for investors who seek to invest a modest amount in gold. Current gold prices put the value of a single bar around $250. They are well within reach of young investors, those with limited capital, and those seeking to dollar cost average into a larger position by investing smaller amounts on a recurring basis.
Should gold prices skyrocket, perhaps in response to a currency crisis, the smaller and most affordable units may be the easiest to sell or trade. In that event, the premiums associated with items such as the 5-gram gold bars can be expected to rise relative to larger bars and coins. This effect would magnify the returns for investors.
Benefits of the 5-Gram Gold Bar
The primary advantages of 5-gram gold bars are their affordability and packaging. Investors do not have to spend a lot to get a well-made bar, securely packed in an assay holder. The holder both protects the bar from damage and provides certification as to the metal content.
Trust is a big deal for people buying and selling gold. They need to know the metal is genuine and unadulterated. Assay packaging goes a long way to inspire confidence. It includes security features to provide some assurance the item has not been tampered with.
For example, if the laminated layers in the package are peeled and separated, images are revealed which make it clear package is not in its original state. The package is also designed to be difficult to counterfeit with holographic seals and other features.
The private mints and refiners who produce bars also tend to offer the best security features on the bars themselves. Micro-engraved mint marks which are difficult to copy are becoming commonplace. The swiss refiner PAMP Suisse scans each bar they produce to get a unique topographical finger print for each bar. Investors will be able to verify the bars are genuine by comparing against that fingerprint if necessary.
A 5-gram gold bar can be a great stepping stone on the path to building a well-rounded position in physical gold. The most versatile gold holding will have a variety of sizes and denominations of gold in them, including smaller bars. And 5-gram bars make dollar cost averaging via smaller, regular investments in gold feasible for lots of people.
The assay card packaging keeps the bars in “mint” condition over time and inspires confidence in prospective buyers. All-in-all they are a terrific option for anyone planning to buy gold. Add a gold bar to your investment porfolio or collection today at a great price.