Buying 100 gram gold bars can be a good investment, but it ultimately comes down to your goals as an investor. If you aim to hold an asset that appreciates over time to pay for life in retirement or even to pass along to children and grandchildren, buying these may be a sound decision.
Are 100 Gram Bars Hard to Sell?
When the time to sell gold arrives, you want to be able to liquidate it without hassle or numerous steps. Compared to smaller gold products like single grams and ounces, selling a larger gold bar can be more difficult, although it also stands to boost your margins.
Although it will be easier to find buyers for smaller units of gold, it will require more transactions, which stands to reduce the value of gold per gram. At the same time, finding a buyer for a 100 gram gold bar may be more challenging amidst an ongoing crisis, conflict, or war. The best option for managing both long-term and short-term instability may involve holding fractional quantities in addition to larger units of gold.
Gold is always in demand, so selling gold products will almost always be less challenging than selling other asset classes. The gold spot price per gram fluctuates and is updated every several minutes and the value of a 100-gram gold bar is based on this market price for gold.
Buying 100 Gram Gold Bars
Pros
Low Premium
As of this writing, the lowest cost 100-gram gold bar available from APMEX has a $1.44 premium over the gold per gram price, which is $7,781 for a secondary market 100-gram gold bar. That amounts to $77.81 per gram of gold. The current gold spot price is $76.37 per gram.
Comparing that to other gold products like the ever-popular Gold American Eagle provides an interesting bit of context. The lowest price, Gold Eagle for sale, currently has a $100.19 premium. But that premium represents one troy ounce of gold, not one gram. For a true one to one comparison, the unit of weight needs to be the same. At 31.1035 grams per troy ounce, the premium you pay for a one ounce Gold Eagle per gram is $79.59 per gram, nearly $2 more per gram over the price of a 100 gram gold bar.
Global Value
The value of a gold bar weighing 100 grams is the same anywhere in the world, as the value of this bar is pegged to the live spot price of gold.
Diversification
If you have invested in another precious metal, such as silver, platinum, or palladium, buying 100 gram gold bars adds diversity to your portfolio. A diversified portfolio helps hedge against factors like inflation and may protect wealth during times of instability.
Cons
Although 100 gram gold bars can diversify your investment portfolio and hold value across space and over time, there are some potential drawbacks.
Low Income Potential
Unlike some investments, gold does not generate income. Few investments retain value in the way that gold does, and its gains often take time to realize. This slow growth is the balance to long term wealth preservation.
Storage Concerns
Larger gold products require secure storage. These bars are not cumbersome in size, but their high value necessitates secure storage solutions. If you use services like Citadel Resources, your gold products are kept safe against damages like theft and other liabilities. When you buy gold from APMEX, you can have it shipped directly to the Citadel facility secured by Brink’s.
Who Benefits from Buying 100 Gram Gold Bars?
Buying gold is generally a good investment but it is imperative to consider your own goals. Buying a 100 gram gold bar as a financial investment will offer greater margin ratios than smaller gold products like one ounce gold bars and rounds. This is due to the lower premiums associated with the product.
If you are buying gold to use during times of economic instability, consider smaller gold products like individual grams of gold, which impart greater liquidity. It may even be beneficial to restrict your purchasing to fractional products, like Goldback gold foil notes, which contain between 1/1000 and 1/20 ounce of fine gold. This is because in the event of a financial crisis, fractional gold products, or gold products sold in fractions of one ounce, may be better suited for barter and trade for daily necessities like food or transportation.
