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Understanding Gold Price Per Gram Is Important When Investing

You will find that gold is sold not only by the ounce or troy ounce but also by the gram. To get the best deal, you should learn more about the differences between these sizes and the value of buying gold by the gram. Here’s a look at the price of gold per gram, the conversion of this measurement to larger weights and the advantages of purchasing gold by the gram versus by the ounce or troy ounce.

Weighing Gold Price Per Gram

Grams, which are used in countries using the metric system as well as those using standard measurements, are also found on the gold market. Many gold dealers sell gold by the gram as well as by the ounce or troy ounce. Although gram-size gold purchases can be more convenient if you who prefer a gradual approach to investment, they also sell for a premium above the cost of larger amounts. This is generally done by dealers to account for additional overhead when working with higher volumes of smaller transactions.
As of November 8, 2013, the spot price of gold is at $1,287.70 per troy ounce while grams are $41.41. By multiplying the gram price by 31.1, the number of grams in a troy ounce, you can see that this cost is equivalent within a few cents. However, as mentioned above, costs tend to be slightly higher when you buy from a dealer. Price per ounce from a dealer is more likely to be close to market spot price while price per gram can be as much as $10 to $15 over spot price. When this is multiplied to find the proportionate cost per troy ounce, it comes to $1,648.30, reflecting a significant increase compared directly to buying in larger amounts. Still, the value of buying this way is not necessarily so simple.

Smaller Size, Higher Investment?

It is true that buying gold by the gram is usually more expensive when compared side by side with purchasing a troy ounce or more, but this buying strategy may be your best bet in certain cases. Smaller investments in future wealth are always better than none at all. Furthermore, the slight premium charged on gold sold by the gram may be overshadowed by the value of investing right away.

If you find that investing in gold by the ounce is prohibitively expensive and have to save for months or years for a single purchase, you may risk encountering spot price increases in the meantime that affect that planned purchase. If, however, you have accumulated gold by the gram throughout this period, you may ultimately be in a position to benefit from already having several grams of gold in your possession at this later date. In this situation, sudden inflation or a spike in gold spot price would actually represent financial security or an opportunity for profit instead of an inability to buy gold by the ounce as its price rises out of reach.

Where Can You Find Gold by the Gram?

Gold can be purchased in different amounts at dealers both online and offline. For the greatest flexibility in investment size, you may want to visit online dealers, which commonly offer gold in increments ranging from half a gram to one kilogram or more. With these options, you can add gold to your portfolio according to your future goals and present financial priorities. No matter which way you choose to buy gold, however, you should weigh the differences listed above regarding gold price per gram versus prices per ounce or kilogram to ensure that the immediate and long-term value works for you.

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