Typically speaking, the bigger the size of the item – the more economical it will work out to be per gram/oz. That doesn’t mean that spending the entire budget on the biggest piece you can afford is necessarily the best way to go though. That depends on each individual and the reason for buying.
How you buy it is the same way you will sell it. If the plan is to lock up a large sum of money and unlock it all at the same time, bigger is probably better, however, understanding the difference in price by buying in smaller denominations can help with decision making.
Smaller bars of gold (1g, 5g, 10g or fractional coins) have a higher rate per gram compared to a 1oz cast bar. So a large investor would probably be unwise to buy a large amount in smaller bars as there’s a reasonable difference in price, unless tradability is the reason for buying.
For example, the difference in buying one 10oz cast bar of gold as opposed to ten 1oz bars is roughly between $20 and $25 an ounce (at time of writing), meaning a difference of $200 – $250. While not an insignificant amount of money, when compared with the overall size of the investment it is a fairly small number, and can be seen as a small price to pay for the flexibility of being able to sell in in potentially ten separate portions, rather than being tied to selling it all at the same time.
The same logic will apply to all sizes and colours. For example, 1oz silver coins are more per gram/oz than 10oz or 1kg but offer flexibility and for some cases, tradability. A 1kg bar is a little over 32oz.
If you compare 10oz bars with 1kg bars, the price of three 10oz bars is similar to one 1kg bar, so buying 1kg will give you an extra 2oz for roughly the same price. Again, it depends on the circumstances as to which option is better, as the three 10oz bars have the added flexibility of being able to sell separately.
There is no right or wrong answer here, it’s a matter of opinion and personal situation. By understanding your reasons for buying, and getting advice from experts, you can make an informed decision that suits you best.
