If you’ve been looking into gold investment for the first time, chances are you’ve come across 1g gold bars and wondered whether they’re actually worth it. They’re small, affordable, and feel like a sensible place to start. But are they really good value for money?

The honest answer is: it depends on what you’re trying to do. Let’s break it down.

The Appeal of 1g Gold Bars

There’s a reason 1g bars are one of the most popular products for new buyers. They cost a fraction of what you’d pay for a full ounce, which makes gold feel accessible. You don’t need to commit hundreds or thousands of pounds to get started.

For a lot of people, that low entry point is the whole draw. Maybe you want to start building a small gold collection over time. Maybe you’re buying a gift. Or maybe you just want to hold a piece of real gold in your hand and see how it feels before going bigger. All perfectly valid reasons.

1g bars from well-known refiners like PAMP Suisse, Valcambi, and Umicore are also beautifully made. They come in sealed assay packaging with certificates, so you know exactly what you’re getting.

The Catch: Premiums

Here’s where things get a bit tricky. The smaller the bar, the higher the premium you pay over the spot price of gold.

With a 1g bar, you might pay anywhere from 15% to 30% above the actual gold value, sometimes more depending on the brand and retailer. Compare that to a 1oz bar, where premiums typically sit around 3% to 8%. The difference is significant.

Why? Because production, packaging, and distribution costs are roughly the same whether you’re making a 1g bar or a 100g bar. Those fixed costs just take up a much larger share of the price on smaller products.

So if your main goal is to accumulate gold as efficiently as possible, 1g bars aren’t the most cost-effective way to do it.

When 1g Bars Make Sense

That said, there are situations where buying 1g bars is a perfectly reasonable choice.

You’re just getting started. If you’re new to gold and want to dip your toes in without a big financial commitment, a 1g bar is a great way to learn the ropes. You get to experience the buying process, hold physical gold, and understand how pricing works before scaling up.

You’re buying gifts. A 1g gold bar in its sealed assay card makes a genuinely thoughtful gift for birthdays, graduations, christenings, or milestones. It’s memorable and holds real value, which is more than you can say for most presents.

You want flexibility. If you ever need to sell or trade a small amount of gold, having your holdings split across smaller bars gives you more options. You don’t have to liquidate a full ounce when you only need a portion of its value.

You’re building a collection gradually. Some people enjoy buying a gram here and there as a form of saving. It’s not the most efficient route to building serious wealth in gold, but it works as a disciplined habit, especially if you’re buying regularly.

When You Might Want to Think Bigger

If you’re investing with the goal of getting the most gold for your money, you’ll generally do better with larger bars. A 10g, 1oz, or 100g bar will give you a much tighter spread between what you pay and what the gold is actually worth.

The sweet spot for a lot of buyers is the 1oz (31.1g) bar. It strikes a good balance between affordability and low premiums, and it’s one of the most liquid sizes on the secondary market, meaning it’s easy to sell when the time comes.

For those with more to invest, 100g and 1kg bars offer even better value per gram, though they’re obviously a bigger commitment upfront.

VAT and Tax Considerations

One thing worth noting is that investment gold is VAT-free in the UK. That applies to gold bars of any size, including 1g, as long as they meet the required purity standard of 99.5% or higher. So you won’t be hit with an extra 20% on top.

Gold is also exempt from Capital Gains Tax if you buy certain coins like Britannias or Sovereigns, though bars don’t benefit from this particular exemption. That’s worth keeping in mind when deciding between bars and coins at any weight.

So, Is It Worth It?

If you’re asking purely from an investment efficiency standpoint, larger bars offer better value. You get more gold for your money and lose less to premiums.

But if you’re buying for the experience, as a gift, to start small, or to add flexibility to your portfolio, 1g gold bars are absolutely worth considering. Not everything has to be about squeezing out the best possible price per gram. Sometimes the simplicity and accessibility of a small bar is exactly what you need.

The key is knowing what you’re buying and why. As long as you understand the premium you’re paying and you’re comfortable with it, there’s nothing wrong with starting small.

At SMP Bullion, we stock 1g gold bars from trusted refiners at competitive prices. Whether you’re buying your first gram or adding to an existing collection, we’re here to help you make a confident choice.