When it comes to investing in precious metals, gold is a timeless favorite. It has been a symbol of wealth and prosperity for centuries and continues to be a reliable asset for investors. But before you start adding gold to your investment portfolio, you need to decide whether to buy it in grams or ounces. In this article, the experts from First National Bullion, the silver and gold dealers Carlsbad collectors trust for high-quality service and industry knowledge, explore the pros and cons of each option, helping you make an informed decision about how to buy your gold.
Buying Gold in Grams
One gram of gold is equal to 0.03215 troy ounces, which is the unit of measurement used for precious metals. Buying gold in grams has some benefits, such as:
- Affordable – You can buy smaller amounts of gold with less money, which can be useful if you have a limited budget or want to diversify your portfolio.
- Easier to sell – You can sell your gold in grams to a wider range of buyers, such as local jewelers, pawn shops, or online platforms. You can also sell your gold in smaller increments, which can give you more flexibility and liquidity.
- Convenient – You can store your gold in grams more easily, as it takes up less space and weight. You can also carry your gold with you more discreetly, which can be important if you travel frequently or live in an unstable region.
However, buying gold in grams also has some drawbacks, such as:
- Higher premiums – You have to pay more for the same amount of gold when you buy it in grams, as the production and distribution costs are higher per unit. The premiums can vary depending on the type and quality of the gold, but they’re usually higher than buying gold in ounces.
- Lower purity – The purity of gold is measured by its fineness, which is the number of parts per thousand that are pure gold. For example, 24 karat gold has a fineness of 999.9, which means it’s 99.99 percent pure gold. However, most gold products sold in grams have a lower fineness, such as 18 karat (750), 14 karat (585), or 10 karat (417). This means they have less pure gold and more alloy metals, which can affect their value and durability.
- Limited selection – Some dealers may offer a limited selection of gold products in grams, which could affect your choices when it comes to the type of gold you want to purchase.
Buying Gold in Ounces
One troy ounce of gold is equal to 31.1035 grams, which is the standard weight used for trading and pricing gold on the global market. Buying gold in ounces has some advantages, such as:
- Lower premiums – You can buy more gold for less money when you buy it in ounces, since the production and distribution costs are lower per unit. The premiums can vary depending on the type and quality of the gold, but they’re usually lower than buying gold in grams.
- Higher purity – Most gold products sold in ounces have a high fineness, such as 24 karat (999.9), 22 karat (916), or 21 karat (875). This means they have more pure gold and less alloy metals, which can increase their value and durability.
- International standard – The troy ounce is a widely accepted international standard for pricing gold. When buying gold in ounces, you’re aligning your investment with the global market, making it easier to monitor and trade.
- Wider variety – You’ll find a more extensive selection of gold products available in ounces, including bars, coins, and bullion. This variety allows you to choose the type of gold that best fits your investment goals.
However, buying gold in ounces also has some disadvantages, such as:
- More expensive – You have to pay more for a larger amount of gold when you buy it in ounces, which can be challenging if you have a limited budget or want to diversify your portfolio.
- Harder to sell – You may have fewer options to sell your gold in ounces, as not all buyers are willing or able to buy large quantities of gold. You may also have to sell your gold in larger increments, which can reduce your flexibility and liquidity.
- Less convenient – You may have more difficulty storing your gold in ounces because it takes up more space. You may also have more risk carrying your gold with you, since it can attract unwanted attention or theft.
Making the Right Choice
In the end, the decision to buy gold in grams or ounces depends on your individual circumstances and investment goals. Here are some key considerations to help you make the right choice:
- Investment size – If you have a limited budget, starting with grams can be more accessible. For larger investments, ounces may be the better choice.
- Purpose – Consider whether you’re buying gold for investment purposes or if you plan to use it for gifting or jewelry. Grams are more versatile for smaller, customized needs.
- Long-term vs. short-term – Think about your investment horizon. If you plan to hold gold for an extended period, lower premiums and international standards may make ounces more attractive. For shorter-term investments, the flexibility of buying in grams might be more suitable.
If you’re looking for affordability, ease of sale, and convenience, buying gold in grams may be better for you. If you’re looking for lower premiums, higher purity, and long-term value, buying gold in ounces may be better for you.
However, you don’t have to choose one or the other. You can also buy a combination of both grams and ounces, depending on your budget and needs. This way, you can enjoy the benefits of both options and hedge against the risks of either one.
For information on any aspect of buying, selling, and owning precious metals, call on the experts at First National Bullion and Coin. When they’re looking for accurate information about the markets for precious metals, including Carlsbad gold and bullion, collectors trust our reputable dealers. We’re a boutique precious metals firm with experienced professionals, and we work hard to keep our investors informed with the most up-to-date market news. If you’re looking to add precious metals to your portfolio, call us today at (855) 919-2536.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.