How Much Gold Can $1M Buy?

[Ben Graham]

How Much Gold Can I Buy with a Million Dollars?

If you are asking, “How much gold can I buy with a million dollars,” you want math, not noise. The short answer is a range: roughly the high three hundreds to low four hundreds of ounces, depending on your all-in price, the products you choose, and transaction friction. The long answer below shows you exactly how to calculate ounces, compare coins versus bars, control premiums and spreads, plan purchases in tranches, and store metal wisely so you keep more of what you buy.

Start with the Math, Not the Hype

Your ounces come from one simple equation: ounces = budget ÷ all-in price per ounce. The all-in price equals spot price + product premium + any transaction costs (shipping, insurance, wires, and taxes where applicable). Spot moves every day. Premiums move with demand and product type. Costs depend on where and how you buy. Until you know your all-in number, you do not know your ounces.

Understand Spot Price

Gold quotes by TradingView

Spot is the live market reference for one troy ounce of gold. Think of it as the starting line, not the finish. You will never pay exactly spot for newly minted, deliverable coins or bars; fabrication and distribution add real-world costs. Use a conservative working spot in your planning so short-term swings do not derail your decision.

Premiums vs. Spreads

Premium is what you pay over spot to buy a product. Spread is the gap between a dealer’s buy price and sell price at the same time. Premiums are the entry toll; spreads are the round-trip toll. Popular one-ounce coins often carry higher premiums and tighter spreads; larger bars often have lower premiums but can have wider spreads depending on the buyer network. Both numbers matter if you want to maximize ounces today and dollars later.

Transaction Costs and Taxes

Shipping, insurance, and payment fees (wire/credit) add to your all-in price. Sales-tax rules vary by state and by product type. For retirement accounts holding physical gold (via an approved custodian and depository), expect setup and annual storage/administration charges. None of these are mysterious—get them quoted in writing before you wire funds.

How Much Gold Can I Buy with a Million Dollars? The Real-World Range

Assume a hypothetical spot of $2,400 per ounce to keep examples concrete. Your all-in price will be spot plus a premium:

• Spot + 2% (efficient bars): all-in $2,448 → about 408 oz for $1,000,000.
• Spot + 5% (mix of bars and popular coins): all-in $2,520 → about 397 oz.
• Spot + 8% (convenience and brand): all-in $2,592 → about 386 oz.

These are planning numbers, not promises. If spot rises or falls, or your premium shifts, your ounces follow. The key insight: a few percentage points on premium can move your stack by a dozen ounces or more on a million-dollar ticket.

Coins, Bars, or Both

You have two levers: liquidity and efficiency. One-ounce coins from major mints (American Eagles/Buffalos, Maple Leafs, Britannias, etc.) are easy to recognize and sell in small chunks. They usually cost more over spot. Bars—especially 10-ounce and kilo bars from recognized refiners—tend to offer more ounces per dollar but require a buyer who can weigh, measure, and verify. Neither choice is “right” in all cases; the right mix reflects your goals.

When Coins Make Sense

• You want the flexibility to sell in small amounts without breaking a larger bar.
• You value brand recognition and tight buyback networks.
• You prefer the psychological comfort of familiar, sealed mint packaging.

When Bars Make Sense

• Your top priority is maximizing ounces per dollar today.
• You use professional storage or a dealer/depository with a strong bar buyback desk.
• You are comfortable verifying serials, weights, and dimensions on delivery.

Hidden Friction That Shrinks Your Stack

People come up short on ounces when they underestimate friction. Beyond premiums, spreads take a bite. With physical gold, buy/sell spreads of 1–3% (and sometimes more) are normal depending on product and venue. Add shipping and insurance. Add custodian and storage if using an IRA. Add sales tax where applicable. These are not “gotchas”—they are the cost of operating in the real world. Price them in before you commit.

Storage, Custody, and Security

How you store gold affects cost, liquidity, and sleep quality. Home storage gives you speed and privacy but requires a serious safe and a call to your insurer. Safe-deposit boxes can work for modest amounts but have access limitations. Professional vaults offer allocated or segregated storage, audits, and insurance for a fee. For retirement accounts, an approved custodian and depository are mandatory. Decide on storage before you buy so delivery and documentation are seamless.

Allocated vs. Segregated

• Allocated: Your metal is identified for you within a larger pool.
• Segregated: Specific bars/coins are set aside under your name.

Both models can work when the provider is reputable. Read the fine print, confirm insurance terms, and keep statements on file.

A Step-by-Step Buying Plan for $1,000,000

• Set your allocation in the context of your overall portfolio and liquidity needs.
• Phase the purchase into tranches (for example, three to five orders over 30–90 days) to reduce timing risk.
• Pre-decide a product mix (e.g., 60% bars / 40% coins) so you do not chase headlines mid-order.
• Get three written quotes from reputable dealers for the exact SKUs, quantities, delivery method, and payment terms.
• Demand an all-in number: premiums, shipping, insurance, payment fees, and any taxes.
• Ask today’s buyback price on the same items to see the spread before you buy.
• Coordinate storage (home safe, bank box, or vault) and insurance in advance.
• Verify on delivery: weigh/measure random pieces, record serials, and file invoices and photos.

Two Buyer Profiles (and the Ounces They Typically Land)

Efficiency-first buyer: Favors kilo and 10-ounce bars, professional segregated storage, and wire payment. With all-in near spot +2% to +3%, this buyer often lands around the upper 300s to low 400s of ounces on $1,000,000. Minimal drama, maximum ounces.

Flexibility-first buyer: Splits across one-ounce coins and mid-size bars. The higher average premium (say spot +5% to +7%) pushes ounces toward the lower 400s or high 300s. In exchange, they can easily sell small slices on short notice.

Worked Example: 60/40 Mix with Hypothetical Prices

Using the earlier $2,400 spot, assume bars at +2.5% (all-in $2,460) and coins at +5.5% (all-in $2,532). On a 60/40 split:

• $600,000 in bars at $2,460 → about 243.9 oz.
• $400,000 in coins at $2,532 → about 158.0 oz.
• Total ≈ 401.9 oz.

Factor in shipping, insurance, and a realistic buy/sell spread, and your net effective cost tightens or widens accordingly. The math is transparent; the decision is yours.

Pressure-Test Your Plan Before You Wire

• If price drops 10% after tranche one, do you stick to the schedule or freeze?
• If dealer A’s buyback disappoints, do you have dealer B ready with terms in writing?
• If you need liquidity fast, which pieces go first, and how long until funds arrive?
• Are storage, insurance, and audit procedures documented and accessible to a spouse or trustee?
• Have you cleared tax questions with your professional before purchase day?

Common Pitfalls to Avoid

• Chasing limited-edition collectibles when your goal is ounces and liquidity.
• Buying without a full, written all-in quote, including shipping and fees.
• Ignoring the sell side; spreads matter as much as premiums over time.
• Concentrating storage in a single location; diversify across at least two.
• Failing to document serials, delivery dates, and storage statements.

Putting Numbers to Work (A Simple Playbook)

Here’s a clean way to execute a million-dollar purchase:

• Decide on a 60/40 or 50/50 split (bars/coins) that fits your liquidity needs.
• Schedule two to four tranches with dates on your calendar.
• Lock each tranche only after you receive an updated all-in quote and same-day buyback.
• Ship directly to your vault for that portion and schedule a secure handoff for any home-stored pieces.
• Log serials, weights, and invoices the day boxes arrive; file digital copies in two locations.
• Review vault statements and insurance certificates the following week; confirm corrections in writing.

Conclusion: Clarity Beats Noise

So, how much gold can you buy with a million dollars? Using realistic all-in pricing, expect roughly the high three hundreds to low four hundreds of ounces. Your exact result depends on spot, premiums, spreads, and storage choices. Choose coins, bars, or a smart blend; phase purchases in tranches; verify on delivery; and document everything. Markets will swing. Your plan should not. Control the inputs, and the ounces will quietly do the job you hired them to do.

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