The value of a gold bar depends on the current spot price of gold. At current market rates, one troy ounce of gold is worth $2,032.40. Meanwhile, a gold bar typically weighs roughly 32 troy ounces (2.2 lbs or 1 kg), which means that a single gold bar is worth approximately $65,341.
The above scenario describes the most common type of gold bar known as “kilobar.” However, there are several different types of gold bars traded on the market, along with different gold units and types used to measure them, which can be a source of confusion for investors. Cheap Treadmill
In this article, we are going to examine different types of gold bars and units, explain who produces gold bars, and explain where you can buy them.
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A gold bar, also known as a gold bullion or gold ingot, is a rectangular-shaped piece of gold that is typically produced by gold refiners and mints. It is a standardized form of gold that is used for investment and storage purposes.
Gold bars are solid blocks made out of gold, often used as a way to store and trade large amounts of gold.
Gold bars are made from highly pure gold, typically with a fineness of 99.5% or higher. The weight of gold bars can vary widely, ranging from a few grams to several kilograms. The most common weight denominations for gold bars include 1 ounce, 10 ounces, 100 grams, and 1 kilogram.
These bars are often stamped with information such as the weight, purity, and the name or logo of the refiner or mint. The gold used to make these bars is typically sourced from gold mines or recycled gold.
There are quite considerable differences between the value of different gold bars depending on their size and purity. The most widely used gold bar type, the 1-kilo gold bar, is currently worth $65,341.
Here are some of the most common gold bars and their respective market prices as of December 7, 2023:
*Based on the spot price of gold of $2,032.40 (collected on December 7, 2023)
One ounce of gold is worth $2,032 as of December 7, 2023. An ounce of gold refers to a troy ounce, a unit of weight used for precious metals like gold and silver, as well as gems. A single troy ounce is equivalent to 31.103 grams (0.0311 kilograms) and roughly 0.0686 lbs. This means that a 1 oz gold bar costs $2,032, or precisely the equivalent of gold’s spot price.
The price chart below shows the spot price of Tether Gold (XAUT), a digital currency that is pegged to the value of a single ounce of gold.
One pound of gold (1 lb.) is worth $29,638 at current prices. Gold is currently trading close to its all-time high. The highest spot price that gold has ever reached occurred in August 2020, when the price of a single ounce of gold reached $2,075.
It is worth noting that gold’s price has increased significantly since the first gold exchange-traded fund (called “Gold Bullion Securities”) launched in the US in 2003, giving investors the ability to gain exposure to gold without having to own the physical commodity itself. Here’s a look at gold’s historical price movements before and after the first gold ETF launched.
Following the launch of the gold ETF, the price of an ounce of gold grew from roughly $335 in March 2003 to over $1,820 in late 2011, an increase of more than +440%. Source: TradingView
A typical gold bar can weigh anywhere between 1 gram (0.032 troy ounces) and 12.4 kilograms (400 troy ounces). There are also smaller and larger gold bars in existence, but they are far less common. For example, the world’s largest gold bar weighs a whopping 250 kg (551 lbs) and is worth more than $16.34 million at the current market price.
There are two broad categories of gold bars – large bars and small bars. In the table below, you can find the most common large and small gold bar sizes:
The most important large bar is the 400 oz gold bar, which is produced under the London Good Delivery specifications. These specifications are set by the London Bullion Market Association (LBMA), describing the physical characteristics of gold that change hands in the London bullion market.
Meanwhile, the most popular and important small bar is the 1-kilo gold bar, which is recognized by the LBMA and can be traded anywhere in the world. One of the most prominent “kilobar” manufacturers is the Swiss refiner Metalor.
Gold is traded all across the world, with both retail and institutional investors using it as the most popular safe haven asset and as a hedge against inflation. Case in point, the current rally in the price of gold can be linked to historically high internet rates that the central banks around the world have enacted in the fight against inflation.
Gold bars are made by various entities involved in the gold industry. There are three main players involved in the production of gold bars, including:
It is worth noting that central banks are the largest holders of gold, holding a whopping 35,715 metric tons of gold as of 2022, a large share of the gold’s $12.3 trillion market cap. Here’s how gold’s market capitalization compares to crypto and other prominent asset classes.
The combined value of all gold in circulation amounted to over $12 trillion as of July 2023.
To buy a gold bar, you can follow these general steps:
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If you want to sell gold, there are several different options available, including selling in person at a physical location (like your local jewelry store), using online platforms or marketplaces, or even consigning your gold to a reputable auction house.
When selling gold, make sure to get multiple quotes, as there can be quite significant price discrepancies between different buyers, depending on the gold content of your gold bar, its size, and the verification of authenticity. These factors can affect the price of your gold bar quite considerably, so make sure you find the best deal available.
There are quite significant discrepancies in the value of different gold bars. For example, a standard gold bar like the 1-kilogram bar produced by the Swiss refiner Metalor can fetch a price of $65,341 at current prices. On the other hand, buying a 1 oz gold bar will set you back $2,032.
If you want to gain exposure to gold but don’t want to pay maintenance and storage fees, you can consider investing in gold-backed cryptocurrencies. Also, if you want to expand your portfolio to other metals with real-world utility, you can consider investing in nickel stocks.
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