What is physical gold?
Learn about what physical gold is, why it’s valuable, and why people buy investment-grade gold. Read our beginners guide to see if gold can benefit your wealth strategy.
Investment-grade gold bars are made of a rare, durable metal valued for its colour, scarcity and historical significance.
Generally considered a safe haven, gold is often used to hedge against currency pairs and stocks - or as a global store of value during periods of geopolitical or macroeconomic uncertainty.
Gold was traditionally costly to store in safe houses, homes or vaults, but its becoming easier to buy and own with the introduction of new technology.
An introduction to physical gold
Physical gold is real, tangible gold in the form of bars, coins, or jewellery, unlike paper or digital versions like gold ETFs or gold mining stocks. People buy physical gold for investment, as a store of value, or to protect against economic instability. Owning physical gold requires proper storage and insurance.
Gold has always captivated people with its shine, durability, and historical importance. It has been used for jewellery, ceremonial objects, and even crowns. Throughout history, gold has driven exploration and trade. It's extracted through mining, with modern methods like cyanide leaching improving efficiency.
Today, gold remains a key part of global finance, valued for its stability in uncertain times. It's considered a safe asset to store value and often serves as a hedge against inflation, as its price tends to rise when stocks or currencies like the US dollar fall.
What makes gold ‘investment-grade’?
Purity: Investment-grade gold usually has a purity of at least 99.5% (also known as .995 fineness) or higher, such as 99.9% (or .999 fineness). This high level of purity ensures that the gold is of a standard acceptable for trading in international markets.
Form: Physical gold often comes in standard forms like bullion bars or coins, which are produced by reputable mints and refineries. These products are standardised in terms of weight and purity, making them easily tradable. It is most commonly weighed in grams, ounces, troy ounces and kilos.
Certification: Investment-grade gold typically comes with certification from a recognised mint or refinery, which guarantees its authenticity and purity.
How is gold stored?
Storing physical gold requires careful consideration to ensure its security and preservation. Gold, being a valuable asset, should be kept in a safe, secure location to mitigate risks of theft or damage.
At home, storing gold may be convenient but requires a secure safe. It’s important to consider the risks and ensure proper security measures are in place.
Many people prefer the added security of a bank’s vault. While this option provides peace of mind, access is typically limited to bank hours - and there may be additional fees.
Some companies offer private vault storage specifically for precious metals. These facilities provide high security, insurance options, and 24-hour access.
This is why many new companies are emerging with secure online storage for physical gold that can be redeemed and delivered when needed.
With Equiti Gold, you can store an unlimited amount of any gold bought on our app with no storage fees. This means you can open a free account, keep your gold assets securely and deliver them in bars of various sizes whenever you’d like to.
However you choose to store gold, always keep detailed records of your gold holdings and their locations. Additionally, consider diversifying storage locations to reduce risk, and regularly review the security measures in place to adapt to any new potential threats.
What makes a good gold supplier?
To ensure you're buying genuine, high-quality gold, it’s important to purchase from reputable sources. Both offline and online suppliers may offer a wide range of gold products, often at competitive prices. Look for gold providers with strong regulation, secure shipping options, and transparent pricing. If your gold supplier does not mention who they are regulated by or offer gold certificates, they might not be trustworthy or contactable.
Equiti Gold is registered by the Dubai Multi Commodities Centre and works alongside trusted partners and UAEGD certified gold refineries, ensuring quality, security and transparency at each step of the process. We offer gold certificates for all delivered physical gold with low certificate fees. For more information, see our About us page or contact our team.
