Last Updated on April 17, 2024 by Ben
The world of gold bars can be confusing. There are different sizes, weights, and purity levels to consider. It’s not easy to know what’s best for you. In this article, the following will be covered in detail so that you can make an informed decision on whether gold bars are suitable for you.
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What Is Credit Suisse Gold Bar?
The first thing to know about gold bars is that they must be of certain purity. All Credit Suisse gold bars are 99.5% pure, among the most refined of all gold on the market. It’s sporadic to find any more pure gold. Most bullion on the market is only .999 pure or even lower.You may also have heard of the term “cash gold.” This means a bar of bullion that isn’t made into a coin. While it sounds confusing, the words cash and coin are interchangeable when referring to gold.With all this in mind, you can see that Credit Suisse’s gold bars are a form of bullion. Bullion is a popular way to invest in gold because it holds its value so well over time.
Development, History, and Introduction
The Credit Suisse Gold Bar bar was introduced in 1957 after a similar bar with a lower purity was already on the market. Since then, the value of these bars has increased by over 10x. Another thing to keep in mind is that this is a Swiss company. On top of being one of the most trusted banks globally, the country has long been known for its neutrality and banking privacy. This means that gold bars are some of the safest ways to store your money in the country.
Unlike money, gold doesn’t lose its value during financial crises. U.S. paper currency has recently lost over half of its value since the last financial crisis in 2008. It won’t be long before another one hits, and you can expect this trend to continue.Surprisingly, a single gold bar can be purchased for less than one million dollars. That seems incredibly affordable at just over 27 kilograms. A representative for Credit Suisse says, “We recommend investors purchase at least 20 bars when first purchasing from us. This is to reduce the cost per ounce and to make shipping easier.”
The main takeaway is that this type of bar is one of the most popular on the market and chosen by many as their preferred way of storing wealth. As with all investments, there is some risk involved, and you should consult your financial advisor before making a final decision.
The Swiss have truly engineered something magnificent with their line of Credit Suisse gold bars.If you’re looking for a long-term store of wealth, this is an excellent option to consider.
Other Types of Gold
While credit Suisse bars are certainly convenient, they aren’t your only option. Gold in coin form can also be a great way to store wealth, and it comes with the added benefit of being easily exchangeable. You can typically exchange your coins for their value in gold at most banks. Some people like to keep some of their wealth in this form as a backup.
For example, you may want to own some U.S. gold coins if you’re a resident of the U.S. These coins come in a variety of weights and purities. For example, you could own 1885 $20 gold coins weighing 1/4 ounce. While it’s not quite as convenient as the credit Suisse bar since you need to carry around a little coin pouch, it’s still relatively safe due to how recognizable these coins are and how little they’re used in daily transactions nowadays.
One thing you’re going to have to do is store this coin in a particular container of some sort. Otherwise, it’s going to be easy for someone to walk off with your entire savings. You don’t want that to happen!
The final option for your gold is in the form of a brick. These are typically used for more significant commercial transactions and aren’t as widely available as coins or gold bars. You’re probably not going to store your entire life savings in gold bullion, but you can keep a little of your cash reserve in this form since it’s highly safe and easy to recognize.
Credit Suisse Gold Bars Physical Characteristics
Buyers can get a little overwhelmed by the number of types of gold bars you can purchase. The gold market is highly organized and comes with its own set of standardized measurements. The gold bar you choose is going to be contingent upon your personal preferences and needs. There are several options in terms of size, purity, and manufacturer. Producers make various sizes and shapes, but all come in standard weights, so you’re going to know precisely how much gold you’re getting.
Gold Bar Design
- Brick: This is the traditional bar shape that you see accompanying bank robbers in movies. It’s exceptionally recognizable and holds only a tiny amount of gold. These are typically only owned by banks or stored in vaults.
- Long: These bars are similar to bricks except that they’re longer and held by banks or shipped around.
- Cannon cut: This uncommon bar is exactly what it sounds like. It’s a brick-shaped bar that has had two corners chopped off so that it can fit easily in safe deposit boxes.
- Cylinder: These look like a long can of beer or soup. Banks and mints commonly hold them.
- Eagle: These bars are more prolonged than bricks and have the top stamp rather than the bottom. They’re not as common but still are held by banks, treasuries, and large companies.
- Mini-Bars: These are extremely short bars that aren’t very popular.
- Pear: While most bars are flat, this bar has a small indent on one side to make it slightly curved and easy to transport across seas.
- Bullion: These uneven bars are often hand-smelted by individuals and are a mix of whatever is being smelted at the time.
Note: All measurements are in troy ounces (oz). One troy ounce equals 1.1 regular ounces. For example, a 100 oz bar is the same as a 110 typical oz bar. Only two USA minted gold bars with a 100 oz fine; the rest are odd sizes such as the 100 oz sharp-size bar or the 100 oz flat brick bar. All other sizes are widespread and traded worldwide.
Specifications
Brand:
Generic Gold Bar dia : small – 0.8in w x 2.1in h, med – 1.1in w x 3.2in h, large- 1.3inx4in
Description: Gold ingots were once universally accepted as the international standard currency. They are taken in nearly every country and are usually of high purity of gold (although not pure since that would be too soft for practical use). They are generally traded in ounce units and can be ingot, slabbed, or minted. Gold bars are hefty, bulky, and are usually kept in a safety deposit box or vault unless actively traded.
Gold products are usually: ingots, slabs, or minted coins and are typically stored in depositories or vaults. The purity of gold is measured in karats. 24 karat means that the metal is pure; the lower the number, the less refined it is. Most purity measures to odds such as 10K (10 karats) and 14K (14 karats).
Credit Suisse Gold Bars Pricing
The current price of gold is about $42 per gram (as of 2015).There are 454 grams in a pound. So, 1 gram of gold = $42 / 454 = $0.0923 per gram of gold.
One hundred grams of gold are equal to 1 troy ounce. The current price of gold is about $1,205 per troy ounce (as of 2015). The USD price of gold is determined by taking $42 times the number of grams per troy ounce (e.g., 1 gram x $42 =$42; 31.1 grams x $42=$1,205). So, the more grams, the more expensive, and the fewer grams, the cheaper. The USD price is translated back into troy ounces and karat type, for example:
- 33-gram pure gold coin would be worth:
- (Note there are 31.101 grams to a troy ounce)
- (1 gram)($42 per gram) = $42 per coin
- 33grams / 31.1 grams = 1.0909 or simply just round up to 1 gram
- $42 (from above calculation) x 1 (troy ozs) = $42 troy ounce
The next step is to determine the purity of the coin. This information (along with the mint of origin and year) should be inscribed on the coin somewhere. It will either be written as a percentage such as .9999 or as a decimal such as 0.125.
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5 Reasons to Buy Credit Suisse Gold Bars
Popularity
Gold has been a popular investment in the world for thousands of years. It has made people both rich and poor, happy and miserable. Gold can be shaped, formed, molded into almost any design imaginable. It is malleable but sturdy. It can be melted and molded but can’t be destroyed. It has survived the test of time.
Can gold go down in value? Yes. Will it, though? It isn’t likely anytime soon.
Gold and the stock market are two very different types of investments. The stock market is supposed to grow your investment (in theory), but there is always a chance that it can lose value as well. Gold, however, has consistently grown in weight and is not meant to be a way to increase how much you have in the bank so much as it is a hedge against currency devaluation.
Standard Sizes
Credit Suisse offers various sizes from 1g to 100g, making it ideal for both big and small investors. You can buy just one or several of these bars to diversify your portfolio without breaking your bank.
High Quality
Gems and metals such as silver, gold, and platinum are judged on an index called Karat. The higher the Karat, the more pure (and expensive) the piece of jewelry or bullion. When it comes to gold, smaller Karat numbers equal higher prices. For instance, an 18 Karat gold ring would be less expensive than a 10 Karat gold ring with the same design because it comprises more gold.
Purity
The purity of a gold bar is typically measured in karats, with 24-karat gold being pure and lower numbers being less pure. If the number is smaller, it means that the bar has more gold in it.
Bullion Bars are one of the easiest ways to get into the gold market. The most popular gold bars are from brands like PAMP and Credit Suisse, which are well recognized as reputable refiners that produce high-quality gold bullion. Thanks to a variety of sizes and designs, bars make an excellent addition to any investment portfolio.
Security
Bullion bars are a very safe investment as they are an easy way to add gold to your investment portfolio. If you plan on holding onto the bar for a long time, you must protect your investment.
Investing in Credit Suisse Gold Bars Through an IRA
You have probably heard the term 401k, which is common for people in the United States to save for retirement. An Individual Retirement Account, or IRA, is a similar way of saving money for your retirement, except that it is regulated by the government and allows you to earn tax-free interest on your savings.
Investing gold bars in an IRA is so popular because it allows your investment to grow completely tax-free. Yes, that means that even the profits you make when you cash in your investment will not be taxed!
The amount that you can contribute to an IRA depends on your income for the year. To be eligible to open an IRA, you must be under the age of 70 and have earned income. If you are self-employed or own a business, you likely earn income. If you are technically unemployed or retired, you may still have “earned income” if your total yearly investment yields at least $5,000.
Income limits are calculated by using adjusted gross income. Any non-wage income counts toward your limit, including investment dividends and realized capital gains.
If you don’t have any other retirement accounts, you may contribute up to $5,500 if you are under 50. If you are over the age of 50, you can contribute up to $6,500.
In addition to your tax savings, another benefit of opening an IRA is that you will become more diversified in your holdings. This could prove very beneficial if you purchase gold, as the price tends to increase over time.
Summary
Gold has been a stable investment for years because of its ability to hold value. Despite a declining economy, demand for gold is still high. If you are an investor interested in protecting your assets, gold bars may be the right choice. While gold coins have more aesthetic value, gold bars offer more bang for your buck and are easier to sell.Buying bullion bars are also a great option if you are looking to open an IRA. Like with most things in life, you were buying gold isn’t a one-size-fits-all activity. Do your research first before you buy.