Minted Bars – Made out of cast bars that are rolled to a uniform thickness. The cutting process is usually done with a die to create blanks that have the required dimensions and weight
Cast Bars – Normally produced directly from Gold that has been melted
1. Gold is heated into a furnace to for it to be softened
2. Once the Gold has soften, the designer stamps the design onto the gold bars
3. Once cooled, the Gold bar is polished, dried & cleaned
The minted bars usually shaped into a rectangular dimension; however, they can be shaped into ovals or squares.
1. The traditional method is usually to cast, pour Gold, which has been melted into a crucible, into a mould with the appropriate dimensions (500 Grams Or 1Kilogram)
2. The modern method, widely used to produce smaller dimensions is to melt it in a furnace, measure the weight of Gold granules or cut pieces of Gold that have been placed in a mould with appropriate dimensions.
3. The markings of the refiner, i.e. PAMP, is applied manually or through a press.
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* There are some questions that we have to answer when making decisions on Gold Investment. See the Questions below as a beginners guide to Gold Investment
1. What is my investment purpose?
2. Should I choose a Cast Bar or Minted Bar?
– What are the advantages & disadvantages of the two types of bars?
3. What Gold bar size should I be buying?
– What are the advantages & disadvantages of different gold bar sizes?
The first and most important question that has to be answered is “What is my Investment Purpose? “. Our experience has taught us that many of our customers are somewhat unclear about their investment purpose.
These are examples of the type of investors that exist:
1. Short-term Investors – These group of individuals seek to buy small quantities of Gold to make small profits within 1 year.
2. Long-term Investors – A group that purchases larger quantities of Gold and retains the amount for more than 1 year in hopes of returning a more substantial level of profit
3. One Time Investors – These individuals are consumers that purchase Gold in any quantity to gift to friends, family or partners or seek to keep Gold for an extended period
4. Hobbyist – Individuals that have a keen interest or passion for all precious metals or Gold related products. The group of individuals highlighted here, are those that are keen on learning the history, manufacturing process while enjoying the beauty of the product designed.
Once you have determined what type of investor you are, we can begin to learn whether you should be choosing a Cast Bar or Minted Bar.
Advantages & Disadvantages of Cast Bars
1. Originality – The production method for cast bars are standardised and similar to the next cast bar produced. However, there will never any two cast bars that will look identical. The reasoning stems from the imprecise molding process that creates unique abnormalities and blemishes.
2. Plainness – in comparison to the design on minted bars, cast bars are dull and bland, only to project the engraving and details of the manufacturer and bar.
3. Pricing – The simplicity and standardisation of the manufacturing process and design of the Cast bar allows for a quick molding process as compared to Minted bars. This allows manufacturers to reduce the cost of production, which is generally transferred onto customers. The prices of Cast bars are reflected closer to Spot Pricing.
4. Certification – The certificate of authenticity & details of the Gold bar are printed and signed on a separate piece of paper unlike Minted bars that have the certificate imprinted on the packaging that encapsulates the Minted bar
Advantages & Disadvantages of Minted Bars
1. Design – The detail of minted bar are exceptional in design. PAMP products such as the Fortuna, Rosa & Lunar Calendar series are examples of a 3-D designed Gold bar. The advancement in fabrication and manufacturing techniques has allowed for the creation of more delicate and intricate Gold bar designs.
2. Value – Investors may place more value on a well-designed Gold bar that has a sophisticated and elegant designed. The majority of the time, the certification of the Gold bar is imprinted on the packaging that encapsulates the Gold bar from fingerprints. Therefore, upon selling the bar, the extra premium paid for can usually be returned.
3. Pricing – The pricing involve for minted bars is usually unrecommended for investors that are on a tight budget or seek to invest solely in precious metals.
4. Packaging – It is usually in a secured packaging, hence investors that prefer to feel the minted bars is required to remove it. A slight devaluation of the Gold bar occurs due to the packaging being broken.
In the case of what Gold should I buy & if I do, what size?
The general rule that the majority of people use is that the bigger the bar denomination, the lower the premium commanded over spot price per once. The reasoning stems from the manufacturing process, time or work required to produce the bar. A larger bar requires the same amount of time to pour or cast a smaller bar. Thus, the net cost of bar fabrication is quite similar.
It is crucial to understand that your investment goals and budget determines what Gold bar you should buy. It is imperative to answer the previous questions before making your investment.
Advantages & Disadvantages of Different Gold Bar Sizes
1. Divisibility – A 1 kilogram Gold bar cannot be sliced or broken down into smaller parcels and sold when the need arises.
2. Counterfeiting – It is common to see many larger denomination bars being used to as counterfeits. A recent case that occurred was the Gold bars stored in JP Morgan Chase & Co.
For More Information on the Case Visit: Click Here
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* Please note that the article is just a general guideline that people utilised to understand and invest in Gold. Our advice should not be taken as the definitive method to ensure profitability of your investment. Any investment decisions that you make, 1StopGold Sdn Bhd and its staff is not responsible or held accountable for any errors or losses that the individual makes.
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