Why Buy 1 Kilo Gold Bars?
1 kilo (or kilogram) is 1,000 grams. For those familiar with the US measurement system, a one kilo gold bar weighs around 2.2 pounds. Since there are 16 ounces in a pound, we're looking at about 35 ounces of gold here! With the current price of gold around $1,000 per ounce, that's $35,000 worth of gold bullion.
One Kilo Gold Bars Are Expensive
As you can see from the math in the opening paragraph, 1 kilo gold bars are quite expensive. While a one kilo silver bar will cost you around $500-$600, we're looking at substantially higher prices for gold. Overall, unless you are a large scale gold investor, 1 kilo gold bars just don't make sense, but it sure is fun to look at pictures of them.
1 Kilo Gold Bars Are Not Practical For Most Gold Investors
The price of gold has risen quite a bit and, in my personal opinion, I think we're headed much higher. To pick up a one ounce gold buffalo, you're looking at $1,000-$1,100 as the purchase price (and that's just for one ounce). If you're the average gold investor (like myself), 1 kilo bars are out of touch.
Let's look at this in a different light. What if you just have enough to buy a one kilo gold bar (your gold investment budget is around $35,000-$40,000). In that case, does it make sense to buy a single one kilo gold bar? Let's first look at the big advantage: You will get the most gold for your money. When you buy any bullion ingot in bulk, you pay a lower premium over the price of gold. However, even given this advantage, I would still argue against buying that single one kilo gold bar. In my opinion, it's very important to diversify within your gold bullion collection. You want to buy all sorts of different gold coins and gold bars. Don't limit yourself to just one investment, spread your wealth. Diversification is a key to mitigating risk and also it's very useful to have your gold in a medium that promotes easy exchange. What if you want to sell just a portion of your investment, but not all? This is so much easier when you have a variety of coins and bars.
Who Should Buy One Kilo Gold Bars?
In my opinion, this makes the most sense for those accumulating a lot of gold. If you have a lot of money (a few hundred thousand dollars) and want to get the most gold for your money, one kilo gold bars are a great way to go. Just make sure you buy your gold from a reputable dealer and it comes with an assay certificate. If it's not real, there is huge financial downside compared to smaller denomination gold coins. Like gold bars, but not ready to shell out $35,000 or more?