For first-time investors, 1 gram gold bars often seem like a sensible starting point. They’re small, affordable, and easy to understand.
But are they actually good value?
Let’s break down the real cost of buying 1g bars — and whether they deserve a place in your gold investment strategy.
What Is a 1g Gold Bar?
A 1g gold bar weighs just one gram, or 0.032 troy ounces. At today’s prices, the raw gold content is worth around £70–£80, depending on market conditions.
They’re often produced by reputable refiners like PAMP Suisse, Valcambi, and Heraeus, and come sealed in tamper-proof packaging with serial numbers.
The Price Problem: Premiums Matter
The biggest drawback? You’ll pay a high premium over the spot price.
Example:
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Gold Spot Price (per gram): £65
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Retail Price of a 1g Bar: £80–£95
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Effective Premium: 20%–45%+
That’s £15–£30 extra per gram, just for packaging, production, and margin. You’re paying more, but getting less gold for your money.
Why 1g Bars Are Often Not the Best Value
High Premiums
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You’re paying a disproportionate markup compared to larger bars (like 1oz or 100g).
Less Efficient
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The smaller the gold bar, the higher the cost per gram.
Harder to Resell
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Dealers may offer lower buyback prices on 1g bars due to lack of liquidity and demand.
Think of it like buying bottled water by the shot glass. It’s technically water — just not a smart way to buy it.
When 1g Bars Do Make Sense
That said, there are still some good reasons to buy 1g bars:
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Gifting – Perfect for symbolic, memorable presents
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Emergency use – Easily divisible for bartering in worst-case scenarios
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First-time exposure – For those who want to physically hold gold before investing more
Better Alternatives: What to Buy Instead
1oz Gold Coins (e.g. Britannia)
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Tax-free (CGT-exempt) for UK investors
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Much lower premium per gram
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Easy to store, resell, or pass on
100g Gold Bars
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Excellent value per gram
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Ideal for vaulting or medium-sized holdings
Half-Sovereigns or Sovereigns
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Smaller denomination, but better value than 1g bars
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Legal tender and tax-efficient
Final Verdict: Good Gold, Bad Value
If your goal is capital preservation and smart investing, 1g gold bars are not the most efficient route. They offer convenience — but at a steep cost.
Instead, consider allocating your funds into:
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Gold coins for tax efficiency
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Larger bars for value
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Certified coins for collectibility and growth
Still unsure what to buy?
