Gold is the hot topic right now. You can see ads for gold all over the web, radio, print and TV media. This increased awareness is due to a bull market that is in the middle of the second phase of three phase bull market. Gold has gone for $252 per ounce in 1999 to $1,063 per ounce where it sits today. That is over a 300% rise in value.

When people think about gold their minds usually go to jewelry. Most Americans own some form of gold jewelry, however very few people own gold as a financial asset. Some estimates put this figure somewhere around 3%. This will change as the market continues to heat up. As we enter the third phase gold could go up even more dramatically. Some experts are calling for $5,000 per ounce before the bull market is over.

Once someone begins to think about gold as a financial asset, they typically think about pure gold in the bar form. Sometimes people think about bullion coins, like American Eagles but pure gold is where the novice goes, even though bullion bars and coins are for the most part the same thing.

One confusion is the difference between bars and ingots. Bullion bars are virtually the same thing as bullion ingots. The only difference is that ingots are formed by pouring molten gold into a mold and chilled until solid, whereas bars are minted from blanks that have been hand cut into the proper dimensions. Markings are almost always applied by whoever formed them.

Which is better to buy? That depends on which one is the cheapest. Gold is gold when it is in the pure form. Typically the larger the quantity bar or ingot you buy the lower the premium you will pay per ounce. Therefore don’t get hung up on bar vs. ingots. When it comes to pure gold for inflation protection or price speculation buy the cheapest bar or ingot you can.