For investors buying gold by the ounce makes financial sense. Purchasing this amount of gold offers numerous benefits, including:
1. Lower Markup- Gold that is purchased in weights that are 1 ounce or more will generally see lower markups than transactions that involve weights of less than 1 ounce. Buying gold in gram weights is usually the most expensive method, and the mark up that is charged for these smaller transactions can be significantly more than the mark up for a transaction that involves at least 1 ounce of the metal. Investors who buy in ounce amounts will save money on the investment costs.
2. More Bullion Options- It is possible to find 1 ounce of gold in coins, bars, and sometimes other forms as well. When you buy at least an ounce of this precious metal then the options available for investment purposes are much larger. There are 1 ounce gold coins, bars, and other forms of the metal. Each form of gold chosen will have specific costs, certain benefits, and potential drawbacks as well.
3. Better Portfolio Diversification- Choosing gold in a larger 1 ounce weight can offer better portfolio diversification and wealth preservation. In gram sizes gold can offer some diversification benefits, but these benefits are much larger when larger quantities are added to the investment portfolio. A gram of gold may not offer much risk protection in the portfolio, due to the percentage of gold held compared to other investment vehicles owned.
4. Discounts May Be Available- When gold is purchased in ounce weights there are discounts that may be available. This is especially true for investors who have used a specific dealer in the past or who are purchasing the bullion online. Many reputable dealers may offer certain discounts, and these discounts may or may not be advertised to the general public. Building up a long term relationship with a quality dealer can offer discounts on the gold purchase price paid.
5. Purity Level Is Consistent- When one oz of gold is purchased the purity level of these products is fairly consistent. Most gold bars and coins that contain at least 1 oz of gold will have a purity level that is at least 0.999 pure. With smaller gram weights the purity level is not consistent across the board. A gram of gold can be found in purity levels ranging from 10K up to pure 24K gold.