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Should You Invest in Pre-Owned (Best Value) Gold Bars?

Published by honor in category Precious Metal Information Guides on 21.05.2024
Gold price (XAU-GBP)
1,839.51 GBP/oz
  
+ GBP3.66
Silver price (XAG-GBP)
23.37 GBP/oz
  
+ GBP0.02

Gold has long been considered a safe haven for investors, offering a hedge against inflation and economic instability. While new gold bars often dominate the market, pre-owned gold bars present an intriguing alternative.

This article explores the benefits and potential drawbacks of investing in pre-owned gold bars and helps you decide if they offer the best value for your investment portfolio.

Why Consider Pre-Owned Gold Bars?

pamp 100g bar

Cost Efficiency

One of the primary reasons investors gravitate towards pre-owned gold bars is cost efficiency.

Since these bars have been previously owned, they are often sold at a lower premium compared to new bars

This competitive pricing is attractive to many investors when buying gold for its intrinsic value.

This reduced premium can translate into significant savings, allowing investors to acquire more gold for their money in the long term when selling back.

10g Mixed Bars.png1 Out of stock

10g Gold Bar (Best Value)

578.79 578,79 613.73 613,73
We buy £578.79
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Quality Assurance

Reputable dealers ensure that pre-owned gold bars undergo rigorous testing to verify their authenticity and purity. This process provides buyers with confidence in the quality of their investment.

Moreover, established brands and mints often manufacture these bars, further enhancing their reliability.

Availability of Rare Bars

5g christmas bar

Pre-owned gold bars can offer collectors and investors the opportunity to acquire rare or discontinued bars that are no longer in production.

These unique pieces can add value to a collection and may appreciate over time due to their rarity. When investing in gold, through pre owned bars, make sure to look carefully at the premium of rare bars as they may be a lot higher.

Potential Drawbacks of Pre-Owned Gold Bars

Limited Selection

The selection of pre-owned gold bars can be limited compared to new bars. Investors may need to be flexible regarding the size, brand, and condition of the bars available in the pre-owned market.

Buying pre owned bars can be more luck of the draw, as it will depend on when other investors are ready to cash them in. This supply and demand dynamics mean buying gold bullion bars can be more random.

At Tavex, please note that when purchasing these best value gold bullion bars, we cannot guarantee the availability of a specific brand; we operate on a ‘lucky dip’ basis.

Possible Wear and Tear

While pre-owned gold bars are generally in good condition, some may exhibit minor signs of wear and tear. These imperfections do not affect the gold’s value but may be a consideration for investors seeking pristine bars.

20g Mixed Bars1 Out of stock

20g Gold Bar (Best Value)

1157.55 1157,55 1218.56 1218,56
We buy £1,157.55
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Dealer Reputation

When purchasing pre-owned gold bars, it’s crucial to buy from a reputable dealer.

The market can be rife with counterfeit products, and dealing with a trusted seller ensures the authenticity and quality of your investment

Consider buying from reputable wholesale dealers, such as Tavex, instead of Facebook groups or other platforms where individual are selling gold.

Considerations When Investing in Pre-Owned Gold Bars

valcambi 100g bar

Research and Choose Reputable Dealers

Start by researching and identifying reputable gold dealers, such as Tavex, who offer pre-owned gold bars. Look for dealers with positive reviews, transparent pricing, and a strong track record in the industry.

Verify their credentials and ensure they have proper certifications and affiliations with recognised industry bodies.

Understand Pricing and Market Trends

Familiarise yourself with current gold prices and market trends. Understanding the spot price of gold and the premiums typically associated with pre-owned bars will help you make informed purchasing decisions. Remember, the goal is to buy at a lower premium to maximise your investment’s value.

Read more on the topic here: Calculating Premium from Spot Price: A Step-by-Step Guide

Verify Authenticity and Documentation

Ensure that the pre-owned gold bars you purchase come with proper documentation, including assay certificates and proof of authenticity.

Reputable dealers will provide this documentation, offering peace of mind and ensuring the integrity of your investment.

Conclusion: Is Investing in Pre-Owned Gold Bars Worth It?

Investing in pre-owned gold bars can be a strategic move for investors looking to maximise value while minimising costs. The key is to conduct thorough research, buy from reputable dealers, and stay informed about market trends.

While there are potential drawbacks, such as limited selection and the need for careful verification, the benefits of cost savings and the possibility of acquiring rare bars make pre-owned gold bars a compelling option for both novice and experienced investors.

By following these guidelines, you can make a well-informed decision and potentially enhance your investment portfolio with the best value that pre-owned gold bars have to offer.

Gold price (XAU-GBP)
1,839.51 GBP/oz
  
+ GBP3.66
Silver price (XAG-GBP)
23.37 GBP/oz
  
+ GBP0.02

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