If your gold purchase is for investment purposes, it makes sense to buy your metal at the lowest price per gram that is available. This is where cast gold bars have the advantage as it is cheaper for manufacturers to produce a cast bar than to produce a minted bar.
Cast gold bars are produced by pouring molten gold into a mould. Once cooled, any excess metal in the bar is removed to provide the exact weight required and the bar is stamped or engraved with the details of its weight and purity.
Cast bars look more natural and will generally bear a simple stamp detailing the manufacturer, weight, and purity of the bar. An example is the PAMP 100g Cast Gold Bar. This is bullion in its truest format, a quantity of fine gold in the simplest package.
The conclusion therefore is that the Gold Rate in the UAE is set by the Government of Dubai with regard to market conditions and a strategy to promote transparency and trust in the precious metals sector. The Dubai Gold Rate can differ from the LBMA Fix but this is because the two pricing systems work in very different markets and time zones.
Purchasers looking for ownership of beautiful gold items that also act as investment vehicles may prefer the fine finish and packaging of a minted bar.
Minted bars go through a production cycle similar to the minting of coins. Manufacturers must produce a minting die or plate which is fitted to a press. Blank bars of gold are placed in the press and minted into the finished bar. Following a process of polishing, the minted bars are usually encapsulated in protective packaging to preserve the mirror finish of the bar. The packaging will usually bear the certification for the bar. An example is the beautifully decorated PAMP Fortuna 20gram Minted Gold Bar.
Minted gold bars will typically be packaged in a blister pack that verifies the product. This means that it is impossible to remove the gold from the pack without damaging the packaging, and in effect devaluing the purchase, but offers attractive items that can be displayed if so desired.
Cast gold bars are less attractive and would generally fulfil their purpose just by being stored securely and out of sight. However, they are generally a more tactile product than a minted bar and will not be devalued by handling.
Investors usually have two options when contemplating the sale of gold bullion assets: sell to a dealer or sell to a private individual.
If you are planning to resell the gold to a dealer or refiner, an offer price would be based entirely on the weight and purity of the gold content of the item. In this case, the fact that a bar is cast or minted would not be relevant, the offer price would be based on the gold content of the bar.
Selling to a private individual, a specialist collector or even to a jewellery store for instance, would be advantageous when selling a minted bar as the beauty of the bar and packaging will be factored into the offer. Typically, a minted bullion bar will attract a better offer in these circumstances.
By iGold. Published on 26th October 2022.