Betting Big on Bullion: How to Buy Bulk Gold
For most of us gold stackers, buying bulk gold bullion is the ultimate dream. Imagine being able to say you bought an entire kilo of .9999 pure gold at one time! Although achieving this goal is a tall order for anyone without over $60,000 of disposable income, it never hurts to dream!
Truthfully, buying bulk gold can save you quite a lot of money. Large gold bullion bars and monster boxes of gold coins can help you slash premiums and maximize the amount of fine gold bullion you get for your cash.
In this guide, we’re taking a closer look at how to buy bulk gold. If you’re thinking of betting big on bullion with your next gold purchase, you have quite a bit of research to do. Keep reading for a detailed guide on how to buy bulk gold without breaking the bank!
Why Buy Bulk Gold?
Why would anyone want to spend nearly $70,000 on gold coins and bars? It might seem like an extreme amount of money to spend on any single purchase. But the reality is that some dedicated stackers with deep pockets spend considerably more than $70,000 before their collection is complete.
Conveniently buying several ounces – or even kilos – of gold at one time might save these prolific gold collectors hundreds of dollars in precious metal premiums.
Additionally, remember that the term ‘bulk gold’ can refer to many different things. Since gold is most commonly measured in troy ounces, we tend to think that a bulk purchase is any purchase of more than 5 troy ounces of gold at one time.
There are three main reasons why some investors choose to buy bulk gold: lower premium costs, a simpler stacking process, and higher quantity pricing. If some of these terms are new to you, don’t worry – we’ll take a closer look at all three reasons to buy bulk gold below.
Lower Premiums
For hardcore gold stackers, premiums are everything. If you’re even searching for how to buy bulk gold, chances are that you understand the importance of cutting down premiums. For new collectors, you should know that premiums are a small percentage fee tacked onto the top of a gold product’s price.
That’s correct – gold coins and bars ever sell for their melt value. Instead, gold items like the American Gold Eagle are sold to consumers for their melt value plus an additional premium fee.
If you take a look at our product inventory, you’ll notice something weird. As the size of a given gold bar increases, its premium fees tend to decrease. This makes sense if you think about it. Making a ton of small gold bars is more labor intensive than pouring a massive, barebones bar.
As a result, you can save quite a bit of money on premiums by buying gold in bulk. Why would someone ever buy a kilo gold bar? The answer: to save money, of course!
Simplify the Stacking Process
This reason to buy bulk gold may be a bit controversial, but that doesn’t make it any less true. Some investors stack gold for the thrill of the process. It can be fun to slowly make orders and fill your safe with gold coins and bars over time.
But for another class of investor, it’s much easier and simpler to buy bulk gold. Making one large order with a trusted gold dealer can be a great way to take the stress out of buying gold. Some gold stackers prefer to learn how to buy bulk because it makes the gold stacking process less complicated.
High Quantity Pricing
Another thing you’ll notice about gold prices: the price goes down when you buy more than one product at a time. For the most part, you’ll pay the highest premiums over spot price when you’re just buying a single gold coin or bar.
This is referred to as “quantity-based pricing.” Gold dealers are incentivized to sell multiple gold products at the same time, rather than splitting orders up into multiple different shipments. It makes sense, then, that quantity-based pricing is so common.
Occasionally, Hero Bullion offers “any quantity pricing.” When we do this, that means that you’ll receive the same price for a single American Gold Eagle that you would for buying fifty! Make sure to be on the lookout for these announcements by signing up for our email list at the bottom of this page.
When you choose to buy bulk gold by purchasing multiple gold coins at the same time, you can save money by taking advantage of pricing reserved for high quantity purchases.
How to Buy Gold in Bulk
Have you decided that you’re ready to bet big on gold? Even if you’re just curious about how to buy bulk gold, we’ve got a few several tips for you to make your next gold investment the best one yet.
To buy gold in bulk, you’ll want to focus your attention on two product categories: bulk gold coins and large gold bars.
Let’s take a closer look at how to leverage these unique gold products to help you level-up your gold stacking game.
Bulk Gold Coins
There’s no denying the grip that gold coins have on the stacking community. Forums are saturated with posts debating the best gold coins for stacking. Is it the classic Gold Krugerrand, or does the British Gold Britannia fare better for budget conscious collectors?
No matter what your favorite gold coin is, buying gold coins in bulk is a great way to go big with your next investment.
There are two main ways to buy bulk gold coins: investing in monster boxes or buying high quantities of gold coins at one time. Below, we’ll explore each option.
Buy Gold Coin Monster Boxes
A monster box is a unique method of buying gold, silver, or platinum coins in bulk. Monster boxes are manufactured by the U.S. Mint and fit 500 coins. You read that right. People who buy monster boxes are purchasing five-hundred gold bullion coins at one time.
As you might have already guessed, monster boxes are an extremely expensive way to invest in gold. However, they also offer the best of both worlds for the average stacker.
On one hand, a monster box gives you gold at a much lower premium price than you’d pay if you bought each coin individually. But because monster boxes of gold coins are composed of 500 individual coins, this method of investing helps avoid the divisibility problem associated with buying large gold bars.
When you’re ready to sell your investment, it’ll be a lot easier to sell each coin individually without having to lose 500 ounces of your stack all at once.
Take Advantage of Quantity Pricing
If monster boxes are out of your price range, consider buying bulk coins by making one large purchase including multiple gold coins. Even if you’re just buying 10 1/10 oz gold bullion coins, you’ll save quite a bit of money by taking advantage of high quantity pricing.
Whenever possible, we recommend investors to “round” up their orders to cash in on some of these savings. If you plan on slowly buying several American Gold Buffalos over the course of several months, why not consider saving some money by putting them all in the same order?
Large Gold Bars
Gold bars are the standard for most budget conscious stackers. We understand why, too. Gold bars are a good way to invest in cheap bulk silver because they are often sold at much lower premiums than gold coins.
The same logic applies to any precious metals investment. Why are gold bars cheaper than gold coins? The answer has a lot to do with production costs. Gold bars are relatively cheap to manufacture, and they usually don’t include the bells and whistles you’ll find on most gold coins.
If you’re trying to learn more about how to buy bulk gold, don’t shy away from buying large gold bars from companies like Hero Bullion. Let’s dive into why big gold bars are the best way to buy bulk gold bullion.
Cut Down Premiums Through Big Bars
We covered this a bit earlier, so we won’t talk too much about it in this section. Large gold bars cut down on premiums in two main ways.
First, gold bars generally come with lower precious metal premiums than gold coins or other gold products. Second, premiums become smaller as the size of your investment grows. So when you buy a 1 kilo gold bar, expect to pay quite a bit less when it comes to precious metals premiums than you would for nearly any other product.
Consider AMAC Gold Bars
AMAC gold bars are a stacker’s dream. AMAC is an acronym for “Any Mint, Any Condition.” This self explanatory phrase refers to gold bars that can come from any mint and in any grade/condition.
Hero Bullion sells large AMAC gold bars. Why are AMAC gold bars a good investment? The answer won’t shock you at all – AMAC gold bars are cheap! Because dealers don’t have to worry about keeping these bars in peak condition or retaining a certain stock of specific mint gold bars, they’re able to sell AMAC gold bars at a much lower price compared to similarly sized brand name bars.
Is Bulk Gold a Good Investment?
Is it a good idea to buy gold in bulk? If you can afford bull gold bullion, there’s no denying the benefits of going big on your next investment purchase. Instead of buying a kilo of gold over a long period of time, savvy (and wealthy) gold investors can choose to save quite a lot of money by buying in bulk.
Disadvantages of Buying Gold in Bulk
Bulk gold bullion isn’t without its downsides, though. In addition to being far too expensive for the average investor to afford, buying bulk gold comes with two inherent cons.
First, bulk gold purchases might sometimes sacrifice quality and collectability for quantity. Second, purchasing huge gold bars puts you at a disadvantage when you want to sell your investment, as large investments aren’t as divisible as fractional gold coins or bars.
Before you jump online to buy a kilo of gold, take a look at a breakdown of two of the main downsides to buying large gold bars and bulk gold coins.
Sacrificing Quality For Quantity
Some bulk gold products are beautiful works of art with collectable value to boot. Monster boxes of the American Gold Eagle, for example, avoid the divisibility problem we’ll discuss below while also giving you a large cache of beautiful collectable coins.
However, some of the options we highlighted for how to buy bulk gold in this guide do sacrifice quality to help you cut down on premiums. AMAC gold bars are sometimes beautiful, and investors love the classic look and feel of these investment-grade gold products. But they sometimes pale in comparison to the beauty of an authentic Gold Britannia Coin or Canadian Gold Maple Leaf Coin.
Liquidity/Divisibility Problems
Liquidity is another problem that bulk gold stackers need to consider. Liquidity and divisibility go hand in hand for most investors. Liquidity refers to how easily you’ll be able to sell a gold bar or coin down the line, while divisibility refers to your collection’s ability to be split into smaller, more manageable parts.
Bulk gold options like large gold bars can’t be divided into smaller parts. This is a problem, especially if you plan to sell some – but not all – of your stack in the future.
To get around this problem, consider buying gold in bulk using multiple smaller gold products. AMAC 1 oz gold bars and fractional gold coin monster boxes are two good ways to sidestep the divisibility issue associated with buying massive gold bars.
Final Thoughts: How to Buy Bulk Gold
Are you tired of slowly amassing your gold stack? If you’ve got the money, learning how to buy bulk gold can revolutionize your gold investing game.
To buy bulk gold, you’ll need to capitalize on high quantity gold pricing and compare different gold products.
As always, feel free to reach out to our team if you have any questions or concerns.
You might also like:
About The Author
Michael Roets
Michael Roets is a writer and journalist for Hero Bullion. His work explores precious metals news, guides, and commentary.