When Is The Right Time To Buy 1 Kilo Gold Bars?

– Research & Information from Core Bullion Traders.

The right time to buy 1 Kilo Gold bars takes careful consideration.  There are a number of factors you should be aware of, and think about carefully before buying 1 Kilo Gold bars.

There’s no question that Kilo bars are better value than smaller bars, on a cost per gram basis, so why not buy Kilo bars if your budget allows?  The argument for and against buying Kilo  bars is wide ranging, so we are going to do our best to educate you on the main points and let you decide which is the right option for you and your budget.

What is a 1 Kilo Bar?

1 Kilo bars are produced by refineries in ‘cast’ and/or ‘minted’ form. The ‘cast’ bars are more traditional in appearance and can sometimes cost slightly less than the ‘minted’ bar. Kilo bars are investment grade bullion bars weighing exactly 1 Kilo (Kilogram) – which is 1,000 grams or 32.1507 Troy ounces of gold.  They are 99.9% Fine gold – or four-nines as it is known in the industry – 999.9. 

Kilo bars are all individually numbered and will usually come with certificates – although some secondary market bars may not have certificates – this is why you should always buy from a reputable bullion dealer who has their own in-house testing setup.  At Core Bullion Traders we have an 8-level in-house testing setup and we test ALL gold that comes through our facility.

Kilo bars will differ in look and appearance from refinery to refinery, but they are generally rectangular in shape and approx the size of a large iPhone.  The size may sometimes surprise first-time buyers, as because of the cost of the bars (currently approx. €55,000) first-time buyers may be expecting something out of ‘The Italian Job’ movie!  The reality is only really felt when you hold a Kilo bar in your hand, for the size often belies the density and true weight of the bar, which is surprisingly much heavier than it looks.

Should I Buy a Kilo Bar?

Kilo gold bars are much sought after by seasoned investors and those who tend to buy larger volumes of gold for their portfolio. The main reason for this is that 1 Kilo gold bars are better value for the buyer, as they can generally be bought at a lower premium.  When it comes to buying gold bars you should think of it like ‘economies of scale’ in reverse, in that the fewer bars you buy to get a certain weight, the better value you will get.  There are 32.1507 oz’s (Troy) in a 1 Kilo Bar – if you were to buy 32 individual 1oz bars, it will cost you more than simply buying one 1 Kilo bar. This is simply because there will be 32 individually produced, packaged and numbered bars as opposed to just 1 single bar with the Kilo bar option.

However, you need to consider your own financial circumstances and future needs, when you are deciding whether to buy a 1 Kilo bar or not.  For example if you feel that you may need to cash-in some of your gold in stages – let’s say you may need to cash-in €10,000 worth of your purchase at some stage, then you would be better suited to buy the 32 individual 1oz bars – as you can sell them off ‘piecemeal’ if your financial circumstances require you to do so.  If you had bought the one 1 Kilo bar and needed €10,000 – you would need to sell the whole €55,000(approx) bar in one go.

The Advantages of a Kilo Bar

Once you have taken the all of the previous information into account you may find the Kilo bar is the one to suit your requirements.  As such, you will then realise the advantages to buying the Kilo bar which to summarise are:

  • Better value for the buyer
  • Lower premium cost to the buyer
  • Ease of storage – 1 convenient bar as opposed to 32 (or less) individual bars
  • A great form of store of wealth in a well recognised bar size

If you feel the Kilo bar is for you, we would be happy to look after you whether you wish to buy or sell these great gold bars! If your require meant is smaller – we’ll be more than happy to look after you also. 

Contact us today if you would like to know more.  We look forward to dealing with you at Core Bullion Traders.

Nigel Doolin is Head of Trading at Core Bullion Traders – A gold trading company based in Dublin, Ireland – he can be contacted directly at: nigel@corebulliontraders.ie or Tel: +353 (0)1 447 5975