Is It Worth Buying 1g Gold Bars? A Detailed Cost Analysis

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:

• Gold Spot Price (per gram): £65

• Retail Price of a 1g Bar: £80–£95

• 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

• You’re paying a disproportionate markup compared to larger bars (like 1oz or 100g).

Less Efficient

• The smaller the gold bar, the higher the cost per gram.

 Harder to Resell

• 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:

• Gifting – Perfect for symbolic, memorable presents

• Emergency use – Easily divisible for bartering in worst-case scenarios

• 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)

• Tax-free (CGT-exempt) for UK investors

• Much lower premium per gram

• Easy to store, resell, or pass on

 100g Gold Bars

• Excellent value per gram

• Ideal for vaulting or medium-sized holdings

Half-Sovereigns or Sovereigns

• Smaller denomination, but better value than 1g bars

• 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:

• Gold coins for tax efficiency

• Larger bars for value

• Certified coins for collectibility and growth

 Still unsure what to buy?