1 Kilo Gold Bars
Overview
Gold bars are produced in various denominations, ranging from 1 gram to 400 ounces, in order to meet different investor needs. 1 kilogram pure gold bars are ideal for investors interested in buying or holding large gold bars at a low premium. Not every investor has the budget to purchase a 1 kilogram gold bar, but those that do enjoy a number of advantages over buying multiple gold bars in smaller denominations. ITM Trading offers a wide range of pure gold bars; these gold bars are almost all .9999 (99.99% or higher) pure gold and are produced by the world’s most accredited precious metal refiners.
These large 1 Kilo gold bullion bars offer a compact yet beautiful way to store significant wealth and help hedge your portfolio against inflation and paper currency devaluation. Each 1 Kilogram bar weighs 32.15 Troy ounces, and will be produced by a major mint such as Johnson Matthey, Pamp Suisse, or Heraeus. Each of these companies has established a world wide reputation for producing gold bars and ingots with very strict tolerances for purity and weight. Each company also utilizes their own security measures, including individual serial numbers that can prove authenticity and aid in insuring your bars should you so choose.
Who Owns Large Gold Bullion Bars?
Gold bullion bars this size have a relatively low cost over the spot price of gold, and should be a serious consideration if you have sizable amount of wealth to convert into physical assets. Gold bars also are usually closer connected to the actual price of gold than coins are. This means that when you buy a gold bar, your price is based on the weight of that bar, usually with a premium included in the cost. On the other hand, with a gold coin, the rarity and condition of the coin are also taken into account when pricing the coin, so the gold content alone is not the only factor in determining how much a gold coin costs you. Because of this difference, gold bars often have lower premiums than gold coins.
1 Kilogram Gold Bar Characteristics
1 kilogram pure gold bars are produced by various refineries, with some of the more dominant hallmarks being PAMP, The Perth Mint, Credit Suisse, Johnson Matthey, and the Royal Canadian Mint (RMC). 1 kilogram gold bars contain 32.15 troy ounces (2.2 pounds) of .9999+ fine gold. The physical dimensions of any particular gold bar will vary, depending on whether they are cast bars or stamped bars, as well as depending on the refiner’s equipment and design. The typical 1 kilo gold bar dimensions are 80 mm in length, 40 mm in width, and 18 mm in thickness. The front of these one kilogram pure gold bars are typically stamped with the mint’s hallmark or logo, the gold content and purity, and the bar’s weight. Depending on the refinery, the bar may also be stamped with the bar’s unique serial number. These pure gold bars are approved for IRA investment, meaning you can fund your retirement savings account with this investment, and enjoy a tax break as a result, in most cases.
Storage
Knowing where and how to best store your 1 kilogram gold bars is a crucial part of investing or collecting refined precious metals, especially pieces of this size and value. The bar is worth tens of thousands of dollars (by 2015 standards), so you do not want to just leave it lying around. The ideal storage set up depends on personal needs; however, typically it is suggested that a small percentage of your precious metals portfolio be stored at home, while the majority of it should be stored in a safe deposit box or with a specialized gold custodian. For a bar of this size, you should give careful consideration as to where and how you store it to make sure it is secure. It is important to understand the pros and cons to each storage option and do what is best for you.
Storing Gold at Home
The biggest pro for storing gold or other precious metal products at home is that it is free. However, the con is that it is not very safe. Large amounts of tangible wealth are especially susceptible to theft. Still, it is not a bad idea to keep a small amount at home, for emergency purposes.
Safe Deposit Box
Safe deposit boxes give investors the ability to safely deposit and store their gold while still remaining private. It is important to understand that storing your precious metal investment in a safe deposit box costs money; typically safe deposit boxes run between $100 and $300 dollars per year. However, compared to the price you pay for a 1 kilogram gold bar, and the bar’s value, that is a small price to pay for peace of mind that the bar is safe.
IRA Investment
U.S. Citizens have a third option of storing their precious metal investment with an IRA custodian. Typically, the gold custodians will actually refer you to their preferred gold vaults. Pure gold may often be included into any IRA, including but not limited to: traditional, simple, self-directed, Roth, or SEP. Make sure you know whether your gold can be added to your IRA; if not you will need to set up a separate gold IRA.
Investing in Pure Gold Bars
Determining what pure gold bar to invest in depends on various factors including budget, premium, liquidity objectives, and bar hallmark brand recognition to name a few. Typically, the larger the bar the smaller the premium, which is one of the primary advantages of buying 1 kilo gold bars. This is due to the fact that it is less costly and labor intensive to produce a one kilogram gold bar than a 1 oz. gold bar. The pool of potential investors able to afford larger gold bars is also smaller, providing for less competition in the market.
One important factor for investing in gold bars is their liquidity, or the ability to liquidate your gold bars quickly and easily. Pure gold bars should be acquired from trusted, recognized, and established suppliers. Recognizable hallmarks (gold bar brands) like those offered by ITM Trading should make it easy to sell your gold bars virtually anywhere and for a fair price. Purchasing gold bars from suppliers that are not well known invites the risk of not being able to liquidate your gold bar, or worse yet, receiving a counterfeit bar (ITM Trading guarantees the authenticity of all of our gold bars). One kilogram gold bars are especially susceptible to counterfeit due to their larger size, so do your research on any dealer before purchasing. ITM Trading offers free shipping and insurance on all 1 kilogram gold bar purchases.
Value
One kilogram pure gold bars are ideal for serious investors looking to protect their wealth and hedge against uncertainties in the economy. The value of the 1 kilo gold bar will fluctuate according to the spot price of gold. The price of gold is driven, like most commodities, by supply and demand. However, the price of gold is mainly affected by changes in demand, rather than annual production, due to the fact that most gold ever mined still exists in accessible form. The price of gold is also closely affected by the central banks, which determine monetary policy decisions relating to interest rates. When interest rates go up, the price of gold goes down, and vice versa (in most cases). 1 kilogram gold bars contain about 32.15 ounces of pure gold. Therefore, to calculate the approximate value, multiple the current spot price of gold per ounce by 32.15.Gold is in many ways more than just an investment; it is a way to hedge and protect wealth against the risk of loss in such asset classes as equities, real estate, or bonds. For the right investor, a 1 kilogram gold bar is a great product to purchase.
