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Gold Trading: Why Gold Nuggets Have More Value Than Bullion

Gold is quickly becoming a popular means to diversify an investor’s portfolio. This is mainly due to the unrest that still plagues the global economy from COVID-19. It’s not unnatural for precious metals to gain in value during times of economic crises. However, there’s more to investing in gold than simply trading it like conventional liquid bonds. Since it’s a physical asset, it comes in several forms that can increase or decrease its market value. For this reason, aspiring traders need to understand how one gold variant differs from another.

Understanding the impact of economic downturns

The global pandemic’s impact has taken millions of lives worldwide, making it a primary concern as a healthcare crisis. However, healthcare isn’t the only sector affected by the virus’s widespread influence. The closing of borders and economies to observe safe healthcare protocols have led to numerous businesses shutting down. This caused massive shutdowns of companies and layoffs that continue to complicate national and global economies’ stability and profitability. Because of this, business owners and investors are in fear of cashing out their investments with stock prices plummeting out of their control. Thankfully, there are alternatives to maintaining their finances by discovering the value of precious metals.

Comparing gold nuggets and gold bars

Trading precious metals is a practice that we inherited from our ancestors, leading to coin and paper currencies. People in possession of gold nuggets can buy and sell their assets on trading platforms that accommodate these precious metals’ proper valuation. Since gold nuggets come mostly from prospecting, it’s a much rarer item of value than commercial gold bullion in traditional trade markets.

Gold bars, ingots or bullion, are refined gold in brick-shaped form. This standardised form of gold comes from mines extracted from open pits. It’s a trade that has been practised worldwide, from Australia to China.

Choosing gold nuggets over gold bullion

Gold nuggets are naturally rarer than bullion since it’s an unrefined form of gold. This is why collectors and prospectors are ready to pay a hefty price for these rough and newfound nuggets. It’s a staple of the gold trade, especially in Australia, where some historical hauls have come from lucky prospectors.

Although people consider gold nuggets as rarer pieces of precious metals, their rawness makes them a lot trickier to value. Since gold nuggets can come in all forms and shapes, they may only cost as much or even less than standard gold ingot market prices. This mainly depends on the size, shape, and overall weight of the item in question.

A gold nugget’s age and provenance can make it a valuable find for collectors, especially if it still contains pieces of the host rock. While it’s harder to sell it in a conventional gold trading market, there may be prospectors and collectors who can pay a high amount for a rare find.


Considering different ways to diversify your portfolio is a natural response to economic uncertainty. While stocks and liquid assets are currently tough to rely on, it’s best to look at alternatives that can keep your wealth in check. Making the right investments on profitable assets is an excellent way to survive the pandemic financially for the long-term.

Thankfully, you don’t have to prospect in the wilderness to score gold nuggets for your portfolio. At Gold Nugget Shop, we allow investors to sell and buy gold in Perth, Australia on a safe and reliable platform. Contact us today to build a smart investment in golden opportunities!