How to Choose the Right Gold Bar Size for Investment

When it comes to gold, there’s something timeless and valuable about this metal. If you’re a first-time investor dipping your toes into precious metals or an SMSF trustee looking to add stability and investment to your profile, you’ll need to face a decision early on regarding what size gold bar you should buy.

While this may seem like a fairly simple question, the size of your gold bar can say a lot about your strategy, comfort level, or even your goals. We, Gold Secure, have come up with some tips to help you find the size that suits you.

Why Gold Bars Make Sense

Gold has a long-standing reputation, be it for special occasions or as a safe haven during uncertain economic times. Unlike paper assets, gold is globally recognised as being invaluable and incredibly durable. For Australians handling their own investments, gold bars are quickly becoming a popular choice owing to their stability, reliability, and minimal correlation with the highs and lows of the stock market.  

However, while all gold bars hold value, not all of them serve the same purpose. Before choosing the best-sized bar of gold for investment, you need to check a variety of factors like the liquidity, premiums, and your long-term plan.

Understand Your Goals

Before looking at the numbers on the scale, it helps to ask yourself some key questions: 

• Are you looking to start with a small hedge fund or just build long-term wealth? 

• Do you want to buy a one-off purchase or do it gradually over time? 

• Is this investment part of your SMSF strategy or for personal security? 

These questions will help you get some clarity towards the gold bar sizes you should buy so that you don’t overcomplicate your financial goals.  

The Types of Gold Bar Sizes 

Gold bars come in a variety of sizes, each suited to various investor types: 

1 Gram to 10-Gram Bars

Best for: Beginners, gifting, or regular micro-investments

Ideal for beginners or those working with a limited budget. These tiny bars are easy to store and allow you to get a feel for investing in gold without any big commitment. They are also perfect for gifting or building up your collection little by little.

50-Gram to 100-Gram Bars

Best for: SMSF holders planning an incremental growth or investors building a serious position 

These bars are the perfect mid-range sweet spot. They come with a lower premium as compared to smaller bars. However, they are still easy to store and quite compact. 

250-Gram to 500-Gram Bars

Best for: lump-sum purchases, SMSF portfolios, or smaller holdings 

Compared to 1oz vs 100g gold, these bars are more suited for committed investors who have a long-term view. Since they offer better value per gram, they are manageable in terms of storage. However, you may need to sell off the entire bar rather than just a portion of it.  

1-Kilogram Bars

Best for: High-net-worth individuals, those looking for multiple smaller purchases, or SMSFs with a long-term gold strategy 

The best standard for serious investors. These bars offer the ideal value in terms of cost per gram. They also can be less liquid and require more upfront capital. Make sure to opt for a secure storage solution for bars of this size.  

What Premiums and Liquidity Really Mean for Your Gold Investment

Gold bars don’t just cost their weight in gold; they have a premium on top. While smaller bars come with higher premiums owing to the handling and manufacturing costs, a lot of investors tend to opt for bigger bars so they can get more gold for their money.

However, smaller bars tend to be more liquid, meaning that if you just want to sell a portion of your holdings, it’s easier to sell smaller 1-ounce bars than a single 1-kilogram bar.

This, again comes back to your goals. Do you want value or flexibility?

“Choosing the right gold bar size is about striking the balance between liquidity and long-term returns. Your gold bar size should reflect your financial goals, risk appetite, and how easily you want to access your wealth. This can be whether you diversifying an SMSF or starting small.”

Self-Managed Super Fund Considerations

If you’re looking to buy gold through a self-managed super fund, then there are a couple of layers to consider: 

• Audit requirements: You need to make sure that every bar comes with proper documentation and is stored in a way that complies with the given requirements.  

• Secure storage: For SMSF gold, many investors look for professionally managed vaults that offer insured, allocated, and secure storage.  

• Evaluation: While larger bars might be easier to value and track in your SMSF balance sheet, you also need to pay attention to smaller bars.  

Make sure to talk to a professional gold dealer that offers you a reasonable price and expert advice that can help you on your gold-buying journey.  

Cast vs. Minted Gold Bars

When it comes to cast vs. minted bars, cast bars are raw and rugged with lower premiums. Minted bars, on the other hand, are polished, tamper-sealed, and sleek, offering a great resale value. While both are pure gold, the choice all depends on whether you are focusing on visual appeal or affordability in your investment. 

Practical Tips When Buying Gold

Some of the tips to keep in mind when buying gold are:

• Look for a trusted dealer: Always choose a provider that offers LBMA-accredited bars (London Bullion Market Association). This allows you to make sure of the gold’s quality and originality.  

• Prioritise storage: Safety should be your top priority. Be it at home or in a secret vault, make sure your gold is protected. 

• Choose a range of sizes: If you’re not sure which one you should opt for, then choose a mix of small and medium bars. This gives you both liquidity and value. 

• Track market trends: Always keep an eye out for gold prices. Consider the dollar cost and depending on that, you can buy at regular intervals rather than trying to time the market.

So, What Size Is Right for You?

At the end of the day, there is no one-size-fits-all answer. Gold investing isn’t just about grams and ounces; you need to start small and grow your investment over time. Looking for a trusted and reliable gold dealer can help you understand how to go about this process the right way. It’s all about making a bold move to preserve your wealth and diversify in SMSF.

The right gold bar should match your goals and investment along with your long-term plans and comfort level. Remember, you don’t have to figure it out alone.

Not sure which gold bar size suits your investment goals? Ask our experts at Gold Secure now for personalised guidance.