Buy Gold – Coins and Bars as Investments
If you want to buy gold coins and bars you can do so through ISA Gold. However, we believe that informed decisions lead to better investments and as such provide you with the basic information below about gold coins and bars. Armed with the information you will be able to buy coins and bars from the comfort of your home or by visiting our offices in Sandton.
Types of Gold Bars
You either get a casted or minted gold bar. Gold bars have serial numbers and though the weighting system and refinement processes are relatively the same across the globe, the shape and unique characteristics of the gold bar will depend mainly on the refinery or manufacturer. The so-called 100% purity of the gold bars varies from 99% to 99.9%. Smaller minted gold bars don’t necessarily have serial numbers.
Difference between Casted and Minted Gold Bars
The casted bars are basically bars made directly from the melted gold though the way the gold is melted and poured is not standardised. The most common way of making casted gold is to melt the gold and pour it into a mould. However, with advances also in mining and casting technology of today, it is possible to make smaller cast bars. The measured gold granules are placed in a mould and melted in a hot oven. An alternative technique entails the making of a flatter casted bar where the gold goes through a die according to the required dimensions. During this process the serial number is pressed onto the bar.
The open mould casted bars are tapered in the shape which makes it possible to remove the bars from the moulds. One should note that with this method the dimensions of the bottom and top of the bars differ and you will also notice a smooth top surface, but a fairly rough bottom area. Most of the casted bars are flat and broad or narrow and inclined. Many of the gold casting plants now also produce squares and rods of gold.
The minted bars are made from the casted bars through a process of cutting of the casted bars. The main difference lies in the surface texture. Minted bars have a distinct smooth surface throughout with markings made with a mint press. Most of the minted bars have a rectangular shape though some manufacturers now also produce pendant, round and square shaped bars. Many international investors call minted bars ingots while in South Africa we refer to them as coins.
Unwrought bars are refined casted gold bars used as investment bars. Such bars include official manufacturer markings. These types of bars are issued at low premium but above the current value of their gold content, making them suitable as investment vehicles. Such bars are made by a trusted and recognised manufacturer such as the Rand Refinery in South Africa.
Not all gold bars qualify as investment bars. If the gold bars are issued at a fixed price, these bars are known as ornamental gold bars. The minted pendant bars can be worn as jewellery, but are also referred to as investment gold bars. This is, however, only the case if the bars are issued by a recognised manufacturer and when the bars have official markings.
It is important to buy from a trusted supplier of gold coins and bars to have your bars considered as investment bars. All the gold products available from ISA Gold come from conflict-free mine zones and have the necessary certification. This means that you can trust that the weight, carat value and shape, as well as official markings can be verified.
Why Buy Gold Coins & Bars?
Gold is a scarce and valuable metal. With it also being a legal tender in most countries, gold is a good investment alternative to stock market investment or bank savings. Gold is less affected by inflation and because of its durability it makes for a solid long-term investment. It is the perfect hedge against inflation, economic and political instability. The value of gold is linked to the Rand/Dollar exchange rate and the gold price. It is always a good idea to diversify investments and gold is the perfect alternative investment vehicle.