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Investing 101: Everything you need to know about buying gold

buying gold

Unlike this Ballarat resident who found a gold nugget worth $130,000 in 2019, most of us aren’t going to stumble across a literal gold mine anytime soon. But a lot of people do look to invest in a similar fortune. 

Gold is an incredibly attractive prospect for investors who want little risk, as the value of gold is quite consistent in terms of appreciation. 

If you’re considering investing in gold, here’s everything you need to know before you take the plunge:

Bars, coins, or nuggets?

Investors typically invest in gold bars, coins, or nuggets. Some people also purchase gold rounds, but these actually have no currency value, so aren’t ideal if you’re looking for something that appreciates in time. 

The value of gold coins, on the other hand, is calculated using fine weight with an additional premium for supply and demand.  

It’s traditional for investors to buy gold in bars – which are created by melting down the metal into a more attractive format. Bars can be bought through bullion dealers or in major banks in Western countries like Canada and Switzerland.

Gold nuggets are unique, natural pieces that have the highest value and are available in different grades and sizes. 

What grade should I buy?

There are five types of gold nugget grades: 

  • Common or melt grade – these grades have the lowest value
  • Collectible – High value, has additional mineralization that’s appealing for collectors
  • Jewelry grade – High value
  • Investment – High value
  • Museum grade – Highest value, incredibly uncommon

What size nugget should I buy? 

While bigger gold nuggets are worth more, it can be very difficult to find a buyer. Instead, financial advisors and recommend going for smaller nuggets as these are easier to re-sell. 

Nuggets are worth more than gold bars and gold content

Nuggets hold a higher value than gold bars. Gold bars are always deemed the best investment as they are more commonly featured in shows or films with wealthy families. However, nuggets are worth more than their gold content and include a uniqueness that money can’t buy – putting them at a higher price than the bars themselves. 

How to know if gold is authentic?

The trickiest part of investing in gold is knowing what’s real. 

Real gold nuggets will have a certificate of authenticity, with Orocal offering the most valuable certificates on the market. When buying gold – or diamonds – many good companies will provide you with a certificate that will prove the gold is the real deal. This is the only way to truly prove authenticity to buyers or other investors. 

NBG – or Nuggets by Grant – offers Alaskan, Canadian, and Australian gold nuggets, all complete with Orocal certificates. The company has a great reputation with friendly customer service and honest investment advice.  You can also buy gold jewelry from Grant, which can be cherished by family members for generations. 

Where is the purest gold from?

Although purity is only part of the equation when it comes to buying gold nuggets, it’s worth knowing that the purest forms are typically found in Australia. That’s not to say that gold from other areas of the world is of poor quality:  Alaskan gold is known to have a purity of 70-92%, while Australian comes in at 95%.