Investors are rushing to buy gold bars this year due to a combination of economic factors that have created uncertainty and concerns about the future, driving interest in safe-haven assets like gold.
As housing prices and mortgage rates have become inaccessible to first time home buyers, more millennials are shifting their focus to alternative stores of wealth, such as gold. Gold has long been viewed as a tangible asset that can store value effectively over time.
Since gold historically tends to maintain or increase in value during inflationary periods, many younger investors are turning to gold to protect their purchasing power in the long term for when housing becomes more affordable.
With high inflation and low rates from savings accounts, extra cash sitting in the bank is loosing purchasing power. By converting cash savings into fractional gold bars, investors can preserve wealth in a tangible asset that holds its value over time, providing financial stability in uncertain economic environments.
Many financial analysts, like JP Morgan, expect the price of gold to continue to rise over the next few years. Buying gold bars is buying a tangible asset that cannot be printed or manipulated by central banks.
While deals on Costco gold bars can be sometimes be appealing, it is often more practical to buy gold bars in smaller increments that are more easily affordable to buy on a regular basis. Fractional gold bars are made with less than an full ounce of gold, making them more affordable, but share the same characteristics as the larger sizes.
Fractional Gold Bars
Fractional gold bars are smaller-sized bars that weigh less than the standard 1-ounce bar. These are available in weights like 1 gram, 2.5 grams, 5 grams, 10 grams, and 20 grams.
These bars provide an accessible entry point into gold investing for those who may not be able to purchase larger quantities of gold in one go and retain all the benefits of gold as an investment but in smaller, more affordable units.
Fractional gold bars are manufactured by many of the worlds’s leading refineries, including PAMP Suisse, Valcambi Credit Suisse and the Perth Mint. Other less known brands include Argor-Heraeus, Istanbul Gold Refining and Asahi Refining.
All investment-grade gold bars are made from 24k gold that is refined to 99.99% purity.
Premiums Vs. Melt Value
The premium for buying fractional gold bars is generally higher than for larger bars, due to the increased cost of production, packaging, and distribution on a per-gram basis.
Smaller bars, such as 1 gram or 2.5 grams, typically carry a premium ranging from 15% to 35% over the spot price of gold.
Mid size bars, like the 5 gram have slightly lower premiums, 10% to 20% is common.
Larger fractional bars, like the 10 gram or 20 gram sizes have lower premiums and can be found for as low as 5% to 15%, as they are closer in size to the standard 1 oz gold bar.
Comparing Gold Bar Premiums
While fractional gold bars offer flexibility, their premiums are higher than those of larger bars. However, they are still favored by investors who want affordable, smaller increments of gold and liquidity for the future.
20 Gram Gold Bar Premium Chart
Each 20 Gram Gold Bar contains 0.643015 troy ounces of gold, roughly 2/3 of an ounce.
| Brand | Average Premiums over Spot |
| PAMP Suisse 20 g Bar | 3%-6% |
| Valcambi 20 g bar | 2.5%-5% |
| Argor Heraeus 20 g Kinebar | 3.5%-7% |
| Britannia 20 g bar | 3.5%-7% |
| Geiger Edelmetalle 20 g bar | 4%-5% |
| Valcambi 20 g Combibar | 9%-15% |
| Secondary Market 20 g bars | 1.5%-4% |
10 Gram Gold Bar Premium Chart
Each 10 Gram Gold Bar contains 0.321507 ounces, roughly 1/3 of a troy ounce.
| Brand | Average Premium over Spot |
| PAMP 10 g Lady Fortuna Bar | 5%-9% |
| Argor Heraeus 10 g Kinebar | 4.5%-8% |
| Britannia 10 g bar | 5%-9% |
| Perth Mint Kangaroo 10 g bar | 4%-8% |
| Secondary Market 10 g bar | 3%-7% |
| Valcambi 10 g bar | 4%-8% |
5 Gram Gold Bar Premium Chart
Each 5 gram gold bar contains 0.160754 ozt.
| Brand | Average Premium over Spot |
| Perth Mint 5 g bar | 5%-10% |
| PAMP 5 g bar | 7%-12% |
| Secondary Market 5 g bar | 4.5%-8% |
| Britannia 5 g bar | 8%-12% |
1 Gram Gold Bar Premium Chart
Each 1 gram gold bar contains 0.0321507 ounces.
| Brand | Average Premium over Spot |
| Valcambi 1 g bar | 17%-25% |
| PAMP 1 g bar | 18%-30% |
| Britannia 1 g bar | 25%-30% |
| Secondary Market 1 g bar | 15%-25% |
| Perth Mint 1 g bar | 20%-25% |
How to Buy the Cheapest Gold Bars
Finding the cheapest fractional gold bars requires a strategic approach to comparing prices across multiple dealers and using tools that offer transparency in premiums and market rates.
Websites like FindBullionPrices.com allow investors to compare real-time prices from multiple reputable dealers. By providing real-time price updates, this platform helps identify the lowest premiums over spot price for fractional gold bars, allowing users to find the lowest prices for gold bars by factoring in premiums and spot prices.
Additionally, Secondary market fractional gold bars can often be found at lower premiums than newly minted bars. These are previously owned bars that are still in excellent condition and may offer significant savings.
Many dealers offer discounts for certain payment methods, such as bank transfers, ACH and wire transfer payments. Always factor in shipping costs, which can vary between dealers and affect the overall price.
Purchasing larger quantities of fractional gold bars can sometimes lead to volume discounts, reducing the per-bar cost.
Using a combination of price comparison tools, secondary market opportunities, and bulk purchasing can help you find the cheapest fractional gold bars when you’re ready to invest.
In most cases, secondary market gold bars will have the lowest premiums and will over the best value to investors.
