Lowest Price of Gold by Weight
Gold bars, rather than coins, represent the best cost-to-value ratio by weight. To find the best ratio, we need to find the lowest cost per unit. This article will focus on gold by the gram.
As with many commodity purchases, the larger the product is, the lower the cost is per unit.
Can I Buy Gold at Spot Price?
Gold cannot be purchased at the spot price. There is a premium added to the spot price.
The premium is a markup that covers the costs from mining, refining, manufacturing, transportation, storage, and a profit for the dealer.
When you are making a gold purchase, it is helpful to calculate the premium over the spot price to understand the value that you are getting.
Purchasing larger products means paying a lower premium represented as a lower cost per unit.
For instance, a one oz gold bar contains 31 grams and carries a lower price per gram than a one-gram gold bar. A premium one-gram gold bar ($100) is $38.94 over spot and a comparable one oz gold bar ($1990) has a $2.96 premium over the spot price at the time of publishing.
Why Secondary Gold Bars Have the Best Price for Gold Weight
Secondary market gold offers the best value for weight and price. It has the same gold content as similar gold products but carries a lower premium because it has been sold before.
Using our example from above, let us compare a one-gram secondary market gold bar with a one oz secondary market gold bar. The 1-gram bar has a $13.48 premium over the spot, and the one oz gold bar has a $0.71 premium over the spot price.
We will demonstrate this by calculating the cost per gram of gold for each item we examine, and there will be secondary market gold products ranging from 1 gram to 5 oz gold bars. As of today, the gold spot price per gram is $61.06.
Since we use the troy ounce, we will calculate our costs with 31.103 grams per ounce.
Secondary Market Gold Products Broken Down to Weight by Gram
| Gold Weight | Price | Price per Gram |
| 1 gram | $73.82 | $73.82 |
| ¼ ounce | $537.87 | $69.40 |
| 1 ounce | $1950.79 | $62.72 |
| 5 ounce | $9705.45 | $62.40 |
| 500 gram | $31,138.72 | $62.28 |
| 1 kilogram | $61,824.12 | $61.82 |
What is the Best Way to Buy Gold Coins by Weight?
Your gold investment strategy is restricted to coins over gold bars and rounds. What is the best price per weight available in gold coins?
While there are thousands of gold coins for sale, several stand out. One of those is the 1852-1870 gold 20 Francs French Rooster. With 0.1867 oz of actual gold weight, this coin has a $1 premium over spot per gram.
Which investment strategy is the best, buying the largest gold bar you can, buying secondary market gold bars, or buying gold coins?
At the end of the day, your investment strategy should be aligned with your long-term goals, and it is best to discuss that with a trusted financial professional.
