Budget Investing Guide: Cheapest Ways to Buy Gold

Posted - February 13, 2024
Budget Investing Guide: Cheapest Ways to Buy Gold

No matter how you choose to buy, gold is an expensive investment. Even the cheapest gold products will run you nearly $2,000 per troy ounce. But that doesn’t mean you have to part with your life savings in order to collect beautiful gold coins and bars. 

Investors often ask us about the cheapest ways to buy gold. While all gold is relatively expensive, there are some budget options for collectors who don’t want to spend thousands of dollars every time they yearn for a new gold coin.

Today, we’re walking budget investors through some of the cheapest ways to buy gold. Want to learn how to find cheap gold bars and coins? We’ve got you covered in the latest Bullion Academy guide! 

Cheapest Ways to Invest in Gold

To invest in gold, you have to first decide what type of product you want to buy. Generally, gold products can be separated into three main categories: gold bars, gold coins, and gold jewelry. If you do your research, all of these options can be cheap ways to buy gold. 

Let’s take a look at the main types of gold products, as well as how to find cheap gold to invest in. 

Gold Bars

For the most part, gold bars are considered one of the cheapest ways to invest in gold. When you buy gold bars, you’ll still need to cough up more than the bar’s melt value in pure gold. This can, of course, be a pretty expensive investment. 

However, gold bars usually sell at lower premiums over spot price than gold coins and jewelry. Additionally, the wide weight variety that gold bars offer makes them a formidable option for investors who really want to invest in cheap gold bullion. 

Below, we’ll address the reasons why gold is one of the cheapest ways to invest in gold for new collectors. 

Low Premiums Over Spot Price

Gold bars are known for their low premiums over spot price. This isn’t much of a surprise for investors who understand the key differences between gold bars and coins. 

After all, gold coins usually feature intricate, beautiful designs made by government mints. This results in a high production cost, which is kicked back to the consumer in the form of precious metal premiums. 

Some gold bars can be more expensive than others. Make sure to shop around and compare prices across multiple brands before settling on your next budget gold bar. 

Wide Weight Variety 

Gold bars also offer an impressive variety of different weights. Hero Bullion sells fractional gold bars, which are some of the cheapest ways to buy gold. You can even pick up gram and 5 gram gold bars to help you build your gold stack without breaking the bank. 

Keep in mind, though, that gold premiums tend to increase as the size of your investment gets smaller. The cheapest gold products to buy are usually large bars. Any Mint, Any Condition (AMAC) 1 Kilo Gold Bars are extremely inexpensive. 

Gold coins are also sold in a variety of different weights, or denominations. But because gold bars are already affordable, it makes sense that buying fractional gold bars is one of the cheapest ways to buy gold. 

Cheap Gold Bars: How to Stack Gold on a Budget 

To find the cheapest gold bars for your budget gold portfolio, you’ll need to keep a couple of things in mind. First, the lowest premiums for gold bars are usually applied to large bars, such as Kilo or multi-ounce products. 

Second, investors working with a very low budget should consider investing in small, fractional gold bars. Some of our favorite gold bars are beautiful and affordable if you choose to go with the smallest available weight. 

One fantastic example is the PAMP Fortuna Gold Bar. The 1 and 5 gram versions of this gold bar feature one of the best obverse designs we’ve ever seen on a gold bar, and we’re sure these investments will look great in your safe. What’s even better than that? They’re far cheaper than full 1 oz gold bars! 

PAMP Fortuna 1 gram Gold Bar Front
PAMP Fortuna 1 Gram Gold Bar

Gold Coins 

Gold coins are another option for investors who want to explore cheaper options for buying gold. Because of their high premiums, you’ll have to get a little creative when looking for cheap gold bullion coins. 

Looking around for the cheapest gold coins, considering fractional gold coins, and figuring out how to balance collectability with affordability can help you invest in gold coins without breaking the bank. 

How to Find Cheap Gold Coins 

To find the cheapest ways to buy gold coins, you’ll need to do quite a bit of research. Typically, new versions of popular publicly minted coins are expensive. They come with high premiums, which add to the already-inflated value of gold bullion. 

Your best bet for cheap gold coins is to look for coins in low condition or “random mints.” Generally, dealers will offer better deals on these coins than they would for new coins, such as the 2024 American Gold Eagle. 

Consider Fractional Coins

If you’re looking for the cheapest ways to buy gold coins, don’t shy away from fractional variations. A fractional gold coin is a coin that weighs less than 1 troy ounce. These coins come with higher premiums than some of the larger gold coins on the market. However, they make up for this inflated premium with lower total costs. 

For investors who just don’t have $2,000 to spend on a full ounce of gold, the wide selection of fractional gold coins online make it easy to buy gold on a budget. 

If you want to really save on gold coins, look for fractional coins that are not in BU condition. These beautiful coins might have the best possible grade, but they’re still minted with fine gold bullion and sold at a relatively low price. 

Balancing Collectability With Affordability 

For coin collectors, gold coins aren’t just about bullion. The beautiful artwork and limited mintage of many popular gold coins makes them ideal for both new and seasoned investors. 

But for budget collectors, it’s important to try to find a balance between collectability and affordability. Your best bet for finding the cheapest ways to buy gold coins is to search for “hidden gems,” or gold coins with pure bullion that aren’t super popular among investors. 

Is Gold Jewelry Cheap? 

As a general rule of thumb, gold jewelry is one of the most expensive ways to buy gold. Investors searching for the cheapest ways to buy gold bullion should steer clear of most gold jewelry. 

Check out some of Hero Bullion’s gold bracelets. We work hard to keep premiums low on our gold jewelry, so we may have something that works for the budget stackers out there. 

American Gold Buffalo 1 oz Coin
BU American Gold Buffalo (Random Year)

But most of the time, it’s a good idea for budget investors to focus their efforts on gold coins and bars. If your goal is to cut down on premiums, jewelry’s reputation as a high-premium market spells trouble for you – and your wallet! 

Investing on a Budget: How to Find Cheap Gold Bullion 

Now that you know the basics of the cheapest ways to buy gold, it’s time to address the actual steps for how to find cheap gold bullion. 

To buy cheap gold, you’ll need to do two things as you search for your next investment: understand total investment cost and compare prices across multiple dealers. If you follow our advice, buying gold doesn’t have to be the painful, costly process that most people assume it is. 

Let’s dive into how to find cheap gold! 

Understanding Total Investment Cost

We use the term “total investment cost” to describe how much you’ll actually spend on a given gold bullion product. A gold coin or bar’s base value is determined by its melt value, but that isn’t where the cost stops. 

In addition to a gold bar or coin’s melt value, investors will need to pay both a premium over spot price and shipping and handling fees if they want to buy cheap gold online. 

Below, we’ll take a look at how to determine the total cost of a gold product. Investors searching for the cheapest ways to buy gold should pay careful attention to the total cost of their favorite gold bars and coins. 

Melt Value Versus Premiums 

Melt value refers to how much a gold bar or coin would be worth if it was melted down into pure gold bullion and then sold on the open market. Melt value is a function of spot price. To figure out the melt value of your gold bar/coin, you’ll first need to determine its weight in troy ounces. 

Multiply this figure by the current spot price of gold, and there we go! The product of this equation is your gold product’s base melt value. If you have a 1 oz coin minted with .9999 fine gold and the current spot price of the metal is $2,000, then your coin’s melt value is $2,000. 

1 oz Gold Bar In Assay Card
1 oz Gold Bars – A Cheap Way to Invest in Gold

Aside from melt value, you’ll also have to pay an additional fee dealers refer to as a “premium.” Precious metal premiums are charged for all products, but the exact premium you pay depends on the dealer and the specific products you choose to purchase. 

Considering Shipping And Handling Fees

That’s right – your journey to the cheapest ways to buy gold doesn’t end at calculating premiums and melt value. When you buy gold online, dealers will also charge you to have your items shipped to your home. 

Hero Bullion offers competitively low shipping costs to help you cut back on spending while still receiving beautiful gold bars and coins. Be sure to check out shipping costs when you buy from us; we calculate shipping automatically at checkout so that you don’t have to do the math yourself! 

Comparing Prices 

Like we mentioned above, both premium costs and shipping fees vary based on the dealer you choose to do business with. Hero Bullion offers some of the best prices in the industry for our gold bars and coins, making us a destination for budget investors who want to find the cheapest ways to buy gold. 

Always be sure to compare prices and shop around before buying gold. Whether you go with gold bars or coins, one of the cheapest ways to buy gold is to research! 

Shop Around Before Buying 

We recommend taking a look at what several different dealers have to offer before making your next gold purchase. This shouldn’t be too hard once you figure out what specific gold products you want to buy. Still, research is king for budget investors who want to cut costs while stacking beautiful gold bullion. 

Don’t forget about your local gold dealers. Coin shops and numismatic stores may offer exceptional discounts, although they can’t offer the kind of variety and range of inventory associated with online gold dealers like Hero Bullion. 

Deciding on the Right Gold Product 

We spent a good deal of time exploring the different gold products that budget investors should focus their attention on. 

Like we mentioned earlier, gold bars are considered one of the cheapest ways to buy gold. But if you’re smart and do your research, you can also save thousands of dollars by investing in beautiful fractional gold coins. 

Even gold jewelry could be a sound investment, depending on what kind of deal you’re able to get from your favorite gold dealers. For the most part, jewelry premiums might be the most expensive way to buy gold bullion. 

Spend some time familiarizing yourself with the different types of gold products on the market. And, as always, compare prices before you buy!

Final Thoughts: Cheapest Ways to Buy Gold

We get it. Investing in gold is a dream for many people, but the prospect of spending $2,000 or more on a single gold coin is enough to make almost anyone reconsider. 

The good news is that you can invest in cheap gold if you’re willing to put the time in to do some research. Today, we walked readers through some of the cheapest ways to buy gold. If you’re interested in shopping for cheap gold bars, coins, and jewelry, Hero Bullion has you covered!

Be sure to check out our inventory of cheap gold products!

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About The Author

Michael Roets is a writer and journalist for Hero Bullion. His work explores precious metals news, guides, and commentary.