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Many consumers have grown interested in gold in recent months.
Persistent inflation is one driver of this trend (gold has long been considered a good inflationary hedge) and geopolitical tensions play a role, too. Many also use it as a way to diversify their investment portfolios and reduce overall risk.
Whatever the reason, consumers have many choices when purchasing gold. You can open a gold IRA, buy gold stocks or buy physical gold — also called bullion.
Bullion comes in many forms, including coins, bars, jewelry and more. And beyond that, there are even different sizes you can buy. One-gram bars are the smallest option, and while they can offer a good way to test the gold-buying waters, they’re not right for everyone. Below, we’ve gathered what some experts have to say about 1-gram gold bars and what to consider before buying them.
How liquid do you want to be?
Liquidity is something else you should think about. If you want to be able to quickly sell your gold and turn it into cash in a pinch, then one-gram bars can definitely be a smart option, experts say.
“If you need grocery or gas money it’s a lot easier to sell off small bars than the larger ones,” Nick Fulton, of USA Pawn in Mississippi, says. “It’s not always easy to unload a 100-ounce bar worth $200,000 when you need cash in a hurry.”
You should also think about liquidity for your heirs and dependents, too.
“In the case of estates, it’s much easier for the family to split smaller amounts versus a large bar,” Fulton says. “I’ve seen it first-hand when some family members want to sell and others don’t.”