Frequently asked questions  about gold ingots:

1. What is a gold ingot?

A gold ingot is a solid piece of gold, usually molded into a rectangular or bar shape, that is typically produced from refined gold. Gold ingots are a form of bullion and are often used for investment or reserve purposes. The weight and purity of the ingot are usually stamped or inscribed on the bar, and it can vary in size from small (e.g., 1 ounce) to large (e.g., 400 ounces or more).

2. What is the difference between a gold ingot and a gold bar?

The terms “gold ingot” and “gold bar” are often used interchangeably, but there can be subtle differences:

• • Gold ingots are typically smaller and may be hand-poured or molded into a rougher, less uniform shape, and often have a more historical or traditional connotation.
  • Gold bars are usually larger, more precisely manufactured, and typically produced by reputable mints or refineries with more standardized dimensions and finishes.

In practice, though, both are forms of gold bullion that can be bought and sold.

3. How are gold ingots made?

Gold ingots are made by refining raw gold ore into pure gold (usually 99.5% purity or higher) and then casting it into bars or molds. The process typically involves:

• • Smelting: Raw gold is melted in a furnace.
  • Purification: Impurities are removed through chemical processes like the Miller process or Wohlwill process.
  • Casting: The purified gold is poured into molds to form ingots.
  • Stamping: After cooling, the ingot is weighed, and its purity and serial number are stamped for identification.

4. How can I buy gold ingots?

You can buy gold ingots from reputable dealers, online bullion markets, banks, or precious metals dealers. When buying gold ingots, it’s important to:

• • Verify the dealer’s reputation.
  • Check for an assay certificate to confirm the ingot’s purity and authenticity.
  • Compare prices from different sources to ensure you’re getting a fair deal.
  • Make sure the ingot comes with proper certification and guarantees to ensure you’re receiving genuine gold.

5. What sizes do gold ingots come in?

Gold ingots come in a range of sizes, from small to large. Common sizes include:

• • 1 gram to 1 ounce ingots: These are smaller and more affordable, often used by individual investors.
  • 10 grams, 50 grams, and 100 grams: Medium-sized ingots.
  • 1 kilogram (32.15 ounces): Larger ingots typically bought by institutional investors.
  • 400 ounces (12.4 kg): Known as “Good Delivery” bars, these are used in large-scale transactions and are the standard size for central banks and institutional trading.

6. What is the purity of gold ingots?

Most gold ingots are made from gold with a purity of 99.5% or higher, often referred to as 995 or 999.9 fineness. This means that the ingot consists of 995 or 999.9 parts of pure gold out of 1,000 parts. Gold ingots with higher purity (like 999.9) are generally more valuable.

7. Why should I invest in gold ingots?

Gold ingots can be a good investment for several reasons:

• • Hedge against inflation: Gold has historically been used as a store of value, particularly during times of economic uncertainty or inflation.
  • Tangible asset: Unlike stocks or bonds, gold ingots are a physical asset you can hold and store.
  • Diversification: Adding gold ingots to your portfolio can help diversify your investments and reduce overall risk.
  • Liquidity: Gold is widely accepted and can be easily bought and sold in many markets around the world.

8. Are there any taxes on buying gold ingots?

The taxation of gold ingots varies by country. In some places, there may be a sales tax or Value Added Tax (VAT) applied to gold purchases, while in others, gold is exempt from such taxes, particularly if it’s bought for investment purposes. Additionally, in some jurisdictions, you may be subject to capital gains tax when selling gold and making a profit. It’s important to check your local tax laws or consult with a tax advisor.

9. How do I know if a gold ingot is real or fake?

To verify if a gold ingot is real, you can perform the following checks:

• • Certification: Ensure that the ingot comes with an assay certificate confirming its weight, purity, and authenticity.
  • Visual inspection: Look for the manufacturer’s stamp, serial number, and purity markings (e.g., 999 or 999.9).
  • Weight test: Gold has a specific density, so you can check the ingot’s weight and compare it to the standard weight for its size and purity.
  • X-ray fluorescence (XRF) testing: This is a non-invasive method used to determine the exact composition of the gold ingot.

10. How do I store gold ingots safely?

Gold ingots should be stored in a secure location to protect them from theft or damage. Popular storage options include:

• • Safe deposit boxes at banks (highly secure but may incur a rental fee).
  • Home safes: For personal storage, opt for a high-quality, fireproof, and burglary-resistant safe.
  • Vault storage with precious metals custodians or bullion vaults, which may also offer insurance options.
  • Bullion depositories: Specialized facilities that store gold and other precious metals securely.

11. Can I sell gold ingots once I own them?

Yes, you can sell gold ingots at any time. You can sell them back to a dealer, a bank, or a precious metals exchange. When selling, the price will be based on the current spot price of gold and the purity of the ingot. Be sure to shop around for the best price and consider transaction fees or commissions that may apply.

12. What are the risks of investing in gold ingots?

While gold ingots are considered a relatively safe investment, there are still some risks, such as:

• • Price fluctuations: Gold prices can be volatile, meaning the value of your gold ingot could go up or down.
  • Storage and security risks: If not stored properly, your gold could be lost, damaged, or stolen.
  • Liquidity: While gold is generally easy to sell, there may be times when the market is less liquid or dealers are offering lower prices.
  • Counterfeit risks: If you’re not careful in selecting a reputable dealer, you could end up with fake or counterfeit gold.

13. What is the difference between a gold ingot and a gold coin?

The main difference between a gold ingot and a gold coin is in the form and purpose:

• • Gold ingots: These are typically rectangular or bar-shaped and are mainly produced for investment purposes. They usually come in larger sizes and are stamped with the weight and purity.
  • Gold coins: Gold coins are round and often have a design, with a nominal face value, issued by a government mint. They can have both investment and collectible value.