Buying gold bullion is widely considered to be a sound, long-term investment strategy. There are many ways to invest in gold – such as shares, certificates, exchange-traded funds, and more. However, many people prefer to own physical stores of gold – and that’s where gold bullion comes in.
Gold bullion can be bought as either coins or bars. Coins are the easier of the two to find and obtain. Most international governments mint high-purity bullion coins for collectors and investors to purchase. The most popular of these is the South African Krugerrand, but others include the American Buffalo, the Chinese Gold Panda, the Canadian Gold Maple Leaf, and more. Unlike bars, gold bullion coins tend to sell for more than the value of their gold content because of supply and demand (partially influenced by coin collectors). You can buy gold bullion coins from either the government that mints them, or from a reputable coin dealer.
Gold bullion bars are produced by private companies and come in many shapes, sizes and purities. They can be purchased from private companies or their vendors. Some companies even place vending machines stocked with gold bullion in areas with high international traffic.
The “gold standard” of bullion bars are “Good Delivery” bars, which follow strict specifications set by the London Bullion Market Association. Good Delivery bars do not command any premium pricing when bought (unlike bullion coins), but are highly regarded in the investment world – so they tend to fetch a good price and maintain a steady demand. However, they can be difficult to purchase. The bars are large, which puts them out of many people’s price range. Additionally, most producers of Good Delivery bars do not deal with the public.
Buying gold bullion bars that are not Good Delivery bars carries more risk. Unlike bullion coins that are struck according to exact government specifications, the appearance of gold bars is not as strictly regulated. Therefore, they can be easy to counterfeit. If you do buy a gold bullion bar, you should have it assayed for authenticity. That way, you’re sure to get the best price when selling your gold bullion later. The gold bullion bars that we sell at MGS are certified with the Swiss assayers mark and labeled with a serial number and QR code for authentication purposes.