Things You Should Consider Before Investing In Gold Bars 2023

Last Updated on February 18, 2023 by admin

Things You Should Consider Before Investing In Gold Bars. Gold does not show unpredictable price changes, and if you observe historical data, the price of gold tends to increase in the long run. Moreover, the prices of gold correlate negatively with the stock in times of inflation or deflation. So, whenever you plan to invest next, you can consider gold bars for sale.

Things You Should Consider Before Investing In Gold Bars

Things You Should Consider Before Investing In Gold Bars

Factors Responsible For The High Prices Of Gold

Are you still worried about investing in gold? If yes, you can go through the following factors that drive the prices of yellow metal up.

  • Central bank reserves: The Central bank of different nations buys gold to diversify their reserves. The increased demand for gold causes the 1 gram of gold price in the USA and other countries to surge.
  • Demand for gold: The demand for jewelry is nearly half of the total global demand for gold. The United States, India, and China are the largest consumers of jewelry. The rest of the gold demand is attributable to industrial and medical use. So, the more the demand for gold, the more will be the surge in the price of gold.
  • Production of gold: Another reason for increasing gold prices is the challenges posed while extracting gold. The easy gold has already gets mined and, now the miners have to go deep to get the gold, exposing themselves to hazards. So, the supply constraints are driving the price of gold up.
  • Value of US dollar: The price of gold correlates negatively with dollar prices as it is dollar-denominated. When the dollar stands strong, gold loses its value but, when the dollar weakens, the 1 gram of gold price in the USA and other nations rises. It is how gold will save you in times of inflation.

How To Know If The Gold Bar Is Real?

But, you should be wary about investing in fake gold that is manufactured illegally. Now, it is obvious that the question will arise how you can know if the good is fake or real? So, to answer your question, we are here to share some points which can help you to differentiate between fake gold and real one.

Check For The Marking

Similar to paintings, every producer has its unique marking engraved on the gold bars. If you buy from a reputed producer, you can compare the mark with the mark on the other gold bars. If you find any difference, the gold bar is not real and, you should not purchase it.


Weight is another thing you can check for the authenticity of the gold. The illegal gold bar manufacturers mix inexpensive metals like tungsten in place of gold, causing the gold bar to increase by weight. Therefore, before buying a gold bar, get it weighed and ensure that the weight matches the weight marked on the gold bar.


The length, breadth, and height of the gold bar get set by the machine. So, you can imagine how accurate they are. The precise dimensions of the gold bar get printed on the bar. You can measure the dimensions of the gold bar for authenticity, using a caliper scale.

Ping Test

When comes in contact with other metals, the real gold makes a ping sound. You can check by clicking the gold with the piece of other metal. If you get a ping sound, it is a bar of genuine gold. If you get a thud, then it is mixed with other metals and not a genuine one.

Is Your Gold Magnetic?

The metals usually show magnetic properties but, gold and silver are non-magnetic. You can try bringing a piece of magnet closer to a gold bar. If it gets stuck to it, you got fooled by an alloy in the name of gold.

Fire Assay Test

You can check the gold bar for sale and its genuineness by getting it tested through a fire assay test. This test is used by professionals to check if the gold is the real one. They mix borax, gold, soda ash, flour, litharge, and silica and melt them. The melted concoction gets transferred into a crucible, with a bit of gold in the solid state. Professionals perform this test, taking advantage of the high melting property of the gold.


Investing in gold is a good way to diversify your portfolio but, you should be cautious about purchasing fake gold. So, it is a good idea to always purchase gold from reputed sellers.

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