Why Gold Is So Popular
For starters, gold is one of the 92 naturally occurring elements found on earth and physically there is no known substance yet that has been known to destroy gold, even though it can be dissolved by chemical means it will only be dispersed into gold only state. Irrespective of the size, gold is a relatively soft metal that rates at 2.3 in the hardness scale. It is also quite malleable, meaning that it can be pounded, squeezed or twisted into a variety of shapes and forms without breaking.
It is also quite ductile, meaning that it can be drawn into threadlike or wires without breaking or brittle. Because of its extraordinary resistance, ductility and high electrical conductivity gold is in very high demand in the electronics industry where it is used to build the entire circuitry of some electronic devices such as calculators and TVs. Gold is also quite valuable in the market even though it is not the most valuable but it is possible to find a cubic inch of pure gold fetching around seven thousand dollars ($7,000) and a cubic foot costing anywhere in the range of ten million dollars ($10m).
Even though it is not considered a legal tender, gold can be traded as a commodity in the precious metal market. Even though the prices are volatile, they have been on an upward trend for quite a while now.
Before discussing the available popular sizes of gold bars currently available in the market, it is important to first understand how gold is measured and the various measuring systems which are adopted globally by different countries trading in the metal.
Popular Conversion Rates
Precious metals such as Gold are usually quoted in troy ounces whereas in other countries such as the US the measurements are done using the avoirdupois measurement system. In the troy system, the pound does contain 12 ounces, 5760 grains or 240 pennyweights. In the avoirdupois system, the pound does contain 7,000 grains or 16 ounces. It should be noted that a troy ounce weighs more than the avoirdupois ounce whereas an avoirdupois pound weighs more than a troy pound.
- One Grain = 64.7989 Milligrams = 0.0648 Grams = 0.00208 oz. t. = 0.002286 oz. av.
- One Pennyweight (dwt) = 24 Grains = 1.55517 Grams = 0.05486 oz. av.
- One Troy oz. (oz. t.) = 20 dwt = 480 Grains = 31.1035 Grams = 1.0971 oz. av.
- One Troy pound (lb. t.) = 12 oz. t. = 240 dwt = 373.24 Grams = 0.82286 lb. av.
- One Avoirdupois oz. (oz. av.) = 18.229 dwt = 437.5 Grains = 28.3495 Grams = 0.91146 oz. t.
- One Avoirdupois pound (lb. av.) = 14.583 oz. t. = 291.667 dwt = 453.59 Grams = 1.21528 lb. t.
- One Gram = 15.432 Grains = .64301 dwt = .03215 oz. t. = .03527 oz. av.
For many people, the buying price of a large quantity of gold is a tad too expensive. But buying this precious metal in small quantities such as 1 gram, 2.5 grams, 5 grams, or even 10 grams is quite affordable to all and sundry. This is a great way for anyone to get into the gold market without necessarily spending thousands of dollars. At a steep price tag of over $1,750 per ounce, many people are bound to go for smaller weights of this metal so as to be able to afford a piece of the precious gem. Whichever way you look at it, there are numerous advantages and benefits to be enjoyed if one decides to buy his or her gold bar in small, affordable and highly portable sizes.
Just like most commodities, the price of gold has been increasing over the years; this increase has in turn drawn the attention of governments, business people and a whole lot of individuals. With the price of a gram of gold even hitting the $100 dollar mark, many people have been buying this metal. The symbolism and prestige that gold has is virtually unmatched and is globally recognized and small amounts of the metal can be used for purchases and bartering whereas large stockpiles are usually used to effectively and efficiently preserve capital for those customers who can afford it.
For those trying to get their footing in this market, online gold purchases can be quite cost effective. This is especially so if you are looking for gram products. There are very many reliable merchants who sell such gram products and charge a small premium for handling the said transaction. It is worth noting though those smaller weights tend to carry a slightly higher premium whereas transactions involving more substantial transactions are bound offer discounted rates. You should undertake some careful and detailed evaluation and research though before transacting any deal irrespective of the bullion size. When you are doing an online search, desist from making a decision based on the results or figures you get from the first site you visit. Doing this may cause you to lose lots of cash and even end up paying much higher expenses; diluting the returns you may gain from your vehicle of choice.
Most people prefer dealing in precious metals such as gold due to the impressive growth patterns it has recorded over the years. There is very high and valid expectation that this current growth pattern will continue if not accelerate in the near future. Even though the spot price has been quite high, there is a school of thought that believes that the ore is quite undervalued with some even expecting the spot price to even double within the next decade. If this holds true, then those who get in the market right now are bound to reap bountifully when the prices soar in the near future. Even though you may not be able to afford purchasing large sizes of gold at a go, it is possible though to buy gram by gram of this precious metal and build your stock accordingly and see the value of your holdings soar.
Contrary to popular belief, anyone who can afford to invest in any other investment vehicle can afford to invest in gold of the same amount. Investing in gold is by no means the domain of a few; anyone can invest in it. This metal can and does offer some form of risk protection and can be used to hedge against future possibilities. Purchasing gold does add some form of diversification to an investor’s portfolio and is also known to hold value quite well. Those investors who are wary of sluggish economies and instances of currency devaluation in the financial sector have a good alternative in bullions of whichever size. For all intents and purposes the yellow bullion is the most sought out investment vehicle for the astute investor or market player.
Popular Sizes
As earlier stated, it is possible to get gold bullion bars in relatively small sizes. Contrary to what most people believe, the term gold bar or bullion is quite figurative as even the smallest available size of one gram can still be referred to as a 1 gram gold bar. A gold bar can thus be defined as minted or cast gold items that are produced by a recognized gold bar manufacturer irrespective of its size or shape.
A standard gold bar according to the US mint though should weigh about 25 pounds or 400 ounces and measure 7 x 3 5/8 x 1 3/4 inches with the international standards dictating that the bar must weigh anything between 350 and 430 ounces. There are currently over 55 manufacturers of gold bars in the world who annually produce over 150,000 bars of gold with Central banks all over the world holding around 2.5 million of these bars.
These are some of the popular sizes of gold bars, namely the 1 gram, 2.5 grams, 5 gram, 10 gram, 100 gram and 1 kg. The implication of this is that there is something for each and every one; it all depends on where you are looking and how much you are willing to invest.
