How to Identify and Buy Gold Bars?

Gold bars are manufactured using two primary methods, i.e. Cast, and mint. A gold bar is a gold bar, and you really don’t need to bother about how it was manufactured, however if you really want an in-depth understanding on how to buy gold bars, that suit your specific needs, then you will need to know how they were manufactured. When you step into a shop to buy gold bars its really hard to tell if it was casted or minted. Because both bars (casted and minted) are sold at a low premium above the prevailing market value of gold. When you buy gold bars, you should be familiar with the markings on them, usually gold bars would have the name of the mint / manufacturer along with the quality / purity and the weight of the bar, along with the serial number mentioned on the bar. This makes it easy for the government and the mint to track down these gold bars.

Before you buy gold bars be sure that it bears all the marks of the manufacturer. This should assure you of the fact that the gold bars you are buying are legally manufactured and have not been produced as a result of illegal activity. However you need to be familiar with the characteristics of each bar manufacturer, because notation standards can vary. If you want to buy gold bars that are widely traded, you should be aware of the fact that these bars have their own distinctive features. For instance 400 oz bars, may have variable actual weights along with purities, with the former not always recorded on the bar. As a rule of thumb, good quality gold bars have a purity range from 99 percent to 99.99 percent.

Below are a few important points you should bear in mind when you buy gold bars:

1. When you buy gold bars be sure to always check out the logo or the motif of the manufacturer on the reverse side of the gold bar. This is a standard feature used my the majority of gold bar manufacturers and mints, it will also help you identify who the manufacturer is.
2. Gold bars that have been casted bear a serial number on them, however small bars that have been minted don’t have a serial number stamped on them.
3. If you buy gold bars for jewelry, you wouldn’t see many markings. The gold bar wouldn’t contain markings identifying purities, weights etc, as they have been produced for industrial fabrication use or to be made into jewelry..  

It is interesting to note that most gold bars are manufactured to be used for jewelry or industrial use. Cast and minted gold bars can be used for both fabrication as well as investment purposes. You can buy gold bars at a low premium slightly above prevailing gold prices.

What are Cast Bars?

The choice of whether to buy gold cast gold bars or minted bars can often be confusing. Cast gold bars are produced directly from melted gold. Usually there is a purification process that follows the melting process and precedes the casting process. Traditionally gold is melted and pored into a cast or a mould with the desired dimensions.

Modern methods of casing gold bars entail melting gold granules or small pieces of gold and placing them in a mould appropriate to the dimensions that is required. Another modern method includes passing a die that is cooled by blocks over melted gold in order to give it the desired shape, this is a continuous process. The markings are usually later stamped while the gold bar is still warm and soft some markings are already engraved in the mould.

How are Minted Bars Manufactured?

When you buy gold bars the easiest way to identify minted gold bars from their cast counter parts is by the finishing on their sides. Minted bars have a smooth finish since they have been cut out from the die and have uniform thickness and dimensions. The markings on minted bars are applied by a minting press. The minting process allows for gold bars to be produced in a number of different shapes.

Terms You Should Be Aware of When You Buy Gold Bars.

If you are looking to buy gold bars to make a profit or to keep your funds safe from a declining currency, you will need to buy gold investment bars. These are cast or minted bars that are sold at a low premium above current market’s gold rates. On the other hand if you want to buy gold bars to later mould into jewelry you will need to buy gold ornamental bars. You can buy gold bars at low fixed prices or at a high premium above prevailing market gold rates.

Tags: Gold Bar Types

This entry was posted on Saturday, November 15th, 2008 at 2:40 pm and is filed under Gold Bar Types. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.