Grammes or (kilo)grammes: the choice everyone makes

Anyone wanting to buy physical gold soon encounters a question that seems simpler than it is: is it better to buy small bars of a few grammes, or to go for a larger size of 100 grammes, 250 grammes or even a kilogramme? The answer depends on factors that differ for each person: your budget, your objective, your willingness to pay a higher premium, and what you want to do with the gold in the long term.

This is not a matter where one option is objectively better than the other. Small bars offer flexibility but are more expensive per gramme. Large bars are more efficient in price but rigid when selling. Both sizes have a legitimate function, depending on the context. In this article we place the two sides next to each other — without imposing a conclusion — so that you can make the choice that suits your situation.

The premium: what do you pay on top of the gold price?

With every purchase of physical gold you pay not only the spot price — the current market value of gold per gramme or troy ounce. On top of that, the dealer charges a premium. This premium covers the production costs of the bar, certification, packaging and the dealer’s margin.

How the premium relates to the weight is one of the most concrete differences between small and large bars: the smaller the bar, the higher the premium per gramme. This is not an arbitrary choice by dealers, but the result of fixed production costs. A foundry pays virtually the same basic costs to produce a 1-gramme bar as to mint a 10-gramme bar — but the underlying gold of a 1-gramme bar is of course worth much less. This fixed cost is therefore expressed in a higher percentage mark-up.

Indicative premium list per size

The table below provides a guideline for the typical premiums and tradability of the most common weights. Prices are indicative and vary by dealer and market conditions. The purchase amounts are based on an estimated gold price of approximately €88–90/gramme (March 2026).

* Indicative prices based on the market rate March 2026. Prices vary daily. The premiums are exclusive of any delivery or storage costs.

The table makes one thing immediately clear: the jump in premium is greatest for the very smallest sizes. Anyone buying 1 gramme quickly pays 10 to 15% more per gramme than the spot price. Anyone choosing a 100-gramme bar pays only 1 to 2% extra. At 1 kilogramme, the premium drops to approximately 0.5 to 1%.

However, this does not automatically mean that larger bars are ‘better’. The premium is only one component in the consideration — and not necessarily the decisive one.

Flexibility and tradability

One of the most overlooked aspects when purchasing gold is the question of how you want to sell it again later — or use it. Gold is valuable because it is exchangeable, but this exchangeability differs greatly depending on the size.

The problem of indivisibility

A gold bar of 1 kilogramme is a single piece. You cannot halve or split it. If you ever decide to liquidate part of your gold holdings — for an emergency, a large expense, or because the price is favourable — you must sell the entire bar in one transaction. This means you always liquidate a large amount, even if you may only have needed a fraction.

Small bars offer a different logic: you sell exactly what you need, and the rest remains intact. This gives more control over the timing and quantity of your sale. For those who view gold not only as a long-term investment, but also as an accessible reserve, this flexibility is a concrete value.

The CombiBar: an interim solution

The Swiss manufacturer Valcambi has been bringing a product to market since 2011 that attempts to combine the advantages of both sizes: the CombiBar. This is a gold plate consisting of multiple 1-gramme bars, connected like a chocolate bar. You can break off exactly the quantity you need, with each individual bar bearing the official stamp (weight, purity, LBMA hallmark) and thus being individually tradable.

The CombiBar is available in sizes from 5×1 gramme to 100×1 gramme, and also in a variant of 100×0.5 gramme. The premium of a CombiBar is lower than that of an equivalent number of separate 1-gramme bars, but higher than a standard bar of the same total weight. It is not an ideal solution for those who want to optimise purely on price, but for those who combine flexibility with a higher investment, it offers a practical compromise.

Comparison in terms of tradability

Storage: volume, security and costs

Storing physical gold requires space and security measures. The size of the bars has a direct impact on how you organise storage.

Home storage

Small bars are compact and easy to divide across multiple locations or hiding places. This reduces the risk of a single loss or theft: someone with ten 10-gramme bars can spread them out; someone with one 100-gramme bar has everything in one place. Downside: small bars are also easier to lose or misplace during removal or inheritance, especially if they are not well documented.

Larger bars may be easier to inventory — one 100-gramme bar is one item in your overview — but require at least a proper fire-resistant safe for home storage. This is a requirement for any home storage of gold anyway, regardless of size.

Professional vault storage

Those holding larger volumes often opt for professional custody with a specialised party (such as GFI Safe, Edelmetaal Beheer Nederland or comparable services in other European countries). These services offer maximum security and insurance, but charge an annual fee — usually expressed as a percentage of the value of the stored gold.

For small quantities, professional storage is relatively expensive in relation to the investment. For larger positions, the costs weigh less heavily. For those who explicitly want to keep gold outside the banking system, home storage in a certified safe remains the most autonomous choice.

Fiscal treatment in Europe

The tax rules regarding owning and selling gold differ by country. However, there are a number of European commonalities, and then the national regulations diverge.

What applies everywhere: no VAT on investment gold

Throughout the European Union, investment gold — gold bars of at least 99.5% purity and recognised investment coins — is exempt from VAT. This applies to every size, from 1 gramme to 1 kilogramme. This is a fundamental difference from silver or platinum, on which 21% VAT is payable in most European countries. The VAT exemption makes gold fiscally more attractive upon purchase than most other precious metals, regardless of size.

Belgium: capital gains tax from 2026

From 1 January 2026, Belgium introduced a solidarity contribution on the capital gains that private individuals realise when selling certain financial assets. Physical investment gold — gold bars of more than 1 gramme and with a purity of at least 99.5% — explicitly falls under this regulation.

The tax amounts to 10% on the net capital gain arising after 31 December 2025. Capital gains accumulated before that date remain untaxed. There is an annual exemption of €10,000 on all realised capital gains on financial assets combined — not solely on gold. Those who hold their gold and do not sell pay no tax. The tax is only due at the moment of actual sale.

Gold bars of precisely 1 gramme or less do not strictly fall under the definition of investment gold in the European directive (which states ‘more than 1 gramme’), but there is currently still uncertainty regarding the practical application of this. It is advisable to verify the situation for each product with a tax specialist or gold dealer.

Netherlands: box 3 tax

In the Netherlands, physical gold is treated as wealth in box 3 of income tax. There is no separate capital gains tax upon sale. Instead, the value of the gold counts as wealth on the reference date (1 January of the tax year). On wealth above the exemption threshold — for 2024 this is €57,000 for single persons and €114,000 for fiscal partners — one pays an annual flat-rate levy.

This means that someone with a large gold position in the Netherlands pays tax annually on the presumed wealth return, regardless of whether they sell or not. Those who hold small quantities and remain below the exemption threshold pay, in practice, no tax on their gold.

Germany: tax-free after one year

Germany has a relatively favourable arrangement for private individuals: those who hold gold for longer than one year are exempt from capital gains tax upon sale. If one sells within a year of purchase, then normal income tax applies on the capital gain. The holding period is therefore the decisive factor here, not the size of the bar.

Other countries: a brief overview

In the United Kingdom, Capital Gains Tax (CGT) applies on the capital gain upon sale, but there is an annual tax-free threshold (Annual Exempt Amount). In Switzerland, capital gains on movable property for private individuals are as a rule tax-free. In France, a flat-rate levy applies on capital gains, but with progressive reduction depending on the holding period. In Austria and Spain, similar systems exist with the necessary nuances.

The conclusion for those who think European: the tax rules vary greatly, but the principle that gold only becomes taxable at the moment of sale (and only on the realised profit) applies in most European countries as a basic principle. Always keep proof of purchase — in every country, the purchase price is the fiscal starting basis.

Gold as emergency reserve: size makes the difference

Beyond the investment logic, there are people who hold gold as a tangible reserve for unforeseen circumstances: a serious economic crisis, a bank run, a prolonged power cut that paralyses digital payment systems, or simply a situation where liquid assets are quickly needed outside the regular financial system.

In that use, the consideration changes fundamentally. The efficiency of the premium becomes less relevant; what counts is the usability of the gold at the moment it is needed.

Small bars as a medium of exchange

In a scenario where gold functions as direct exchange value — consider hyperinflation, such as that which took place in Germany in the 1920s or more recently in Zimbabwe and Venezuela — a kilogramme bar is impractical. You cannot split it. You cannot use it for small transactions. Small bars of 1 gramme, 2 grammes or 5 grammes are then more functional: they represent a concrete, manageable value that is easier to exchange.

That is not a reason to buy exclusively small bars. It is, however, a reason to hold part of your total gold strategy in small sizes if the context justifies it.

Large bars as a long-term store of value

Those who hold gold primarily as a long-term savings reserve — as protection against inflation, as part of a broader portfolio diversification, or as wealth that transcends generations — have little extra to gain from small sizes. The higher premium is then an unnecessary cost, and the flexibility adds little if there are no concrete plans to sell in the short or medium term.

In that case, larger bars are more rational: the same quantity of gold, less paid in premium, and less administration.

Brand, quality and authenticity

The choice of a size is separate from the choice of a brand and quality standard — but both are relevant. Always buy bars from LBMA-certified producers. Without that certification, tradability is not guaranteed, and dealers generally offer lower purchase prices for non-certified gold.

Well-known and reliable producers active in the Benelux and Europe include Umicore (Belgium), Valcambi (Switzerland), Heraeus (Germany), C. Hafner (Germany) and Argor-Heraeus (Switzerland). Their bars are recognisable worldwide and tradable without additional authentication examination.

With small bars, it is especially important that they are kept in original, sealed packaging with certificate. A loose 1-gramme bar without packaging or stamp is much more difficult to sell, and dealers then only offer a fraction of the normal price. The packaging for small bars is not a frill — it is a functional part of the value. Never keep small gold bars separate from their packaging.

Purchase strategies: lump sum or spread

Apart from the size, the purchase strategy is a separate consideration. There are two common approaches, each with its own advantages and disadvantages.

Lump sum purchase

Those who invest a larger amount in one go have the advantage of clarity: you know what you have, you have fewer transactions and associated costs, and you can choose a size that is optimal for the total amount. The disadvantage is that you are fully exposed to the gold price at the moment of purchase. If you buy at a historic peak, it may take a long time before your position is in profit.

Spread purchases (euro-cost averaging)

By periodically investing a fixed amount in gold — monthly, quarterly, or half-yearly — you spread the purchase moment. You buy at both higher and lower price levels, whereby the average purchase price stabilises over time. This reduces the risk of poor timing. Downside: with more frequent small purchases, you pay more in premium per gramme, because you buy smaller sizes each time. The higher premium with periodic purchases is a real cost that you must include in the calculation.

Combination of sizes

An approach that pursues both price efficiency and flexibility is building a mixed position: a core in larger bars (100–250 grammes) for the low premium, supplemented with a portion in smaller sizes (10–20 grammes or a CombiBar) for tradability. That spread across sizes reflects a spread across objectives: part investment, part reserve.

Documentation: the paperwork behind the gold

Whether you buy small or large bars, documentation is not optional. Always ensure proof of purchase, keep the certificates and store the original packaging. With small bars, this is less cumbersome per item, but with larger quantities it requires discipline.

In countries with capital gains tax, the purchase price and date are the fiscal basis for calculating any profit upon sale. Without proof, you stand fiscally weaker, and with gold that has been stored for years, such data are sometimes difficult to retrieve. Establish a unique storage location and date notation system for every purchase — also for heirs, who otherwise face a puzzle.

Conclusion

Small and large gold bars are not each other’s opposites. They serve different purposes, and those who are clear about what they want — pure investment efficiency, maximum flexibility, a physical emergency reserve, or a combination of those three — can make an informed choice based on this overview. The premium is a concrete, calculable cost; the flexibility is a value that you only recognise when you need it. Both elements deserve a place in the consideration.

Those who have doubts can visit reputable gold dealers in Belgium or the Netherlands for personalised advice tailored to their own situation — without obligations. The decision itself always remains personal.