What is a Gold Bar Worth?: Gold Bullion Bar Buying Guide
Investing in precious metals is something investors often inquire about, especially those interested in owning a gold bar.
You must understand that gold bullion profits are often quite slim. Let's say you want to sell gold bars for some other currency, such as Gold American Eagles. Additionally, because of the constantly fluctuating prices of gold bars, certain gold dealers and bullion brokers may pay a nominal amount that is a percentage lower than the current price of your gold bar. This is about as common in the business as it gets. The best way to get access to gold bars at or just slightly over the market price is to do business with a gold dealer.
Gold Bar Sizes
Size is significant, too. A variety of gold bars are available, with different weights. When considering a gold bar's premium above its inherent spot value, the smaller the bar, the larger its premium. In other words, a gram-weight gold bar will cost more to purchase than an ounce-weight gold bar.
Recommendation: Gold Vs. Silver: Which Metal to Invest In?
This Weight Represents the Gold Bar's Worth
The weight of gold nearly ultimately determines the gold bullion bar value. Like gold, the price of a bar closely follows the spot price.Price increases in proportion to the size of the bar. You have $100,000 you'd want to save in gold; what amount would you like to secure with the precious metal?
You may use this information to find bars that fit inside your pricing range. Depending on market supply and demand and national, global, and local economic situations, the eventual purchase price of a bar will differ somewhat from the spot price of gold.
See also: Where will the price of gold go?
Think About Cast Vs. Minted If Considering Getting Anything New
You have a few options when it comes to bar size, but mostly you have minted and cast bars. These bars are made by first hand-cutting or punching a broadsheet of gold from a flat piece, and they are finished to have a reflective sheen and beautiful patterns.
However, the designs usually have minimal impact on the market value of the coins. Size and refiner impact package design, as sealed assay cards serve to verify the authenticity and safeguard quality.
The process of pouring molten gold into molds has been used for thousands of years to produce bars. Gold bars are more like bars in appearance, ranging from being almost dull to sparkling bright. The best gold bar choices are the cast bars because they seem more natural and are excellent visual reminders of gold's historic nature.
See also: Cheapest Places to Buy Gold
Our Recap On Gold Bars
Before we go into the nitty-gritty details of gold bars, let's review the characteristics of a gold bar first. These purified bits of metallic gold are un-monetized. The physical size and weight of gold bars may vary greatly, ranging from a gram to one kilogram.
On the other hand, bars that are often labeled as bullion are bought more for speculative purposes. Many buyers of gold bars purchase them to put money into the precious metals market. In general, these investors are accumulating gold as a type of long-term savings. Because of their heaviness and purity, investors acquire gold bars that focus on the gold spot price, seeking the lowest premium over the price of gold.
One troy ounce of gold is standard for most gold bars. Furthermore, 10 oz, 5 oz, and 1 kg gold bars are the most frequent sizes (32.15 troy oz). You can buy gold bars at the institutional level as well.
Good Delivery bars that trade in London weigh 400 troy oz. On the other hand, 100 oz gold bars are used in settling COMEX gold futures contracts in New York. Gold bars used by the Shanghai Gold Exchange are standardized in kilobars.
For specific customers, such investors, private banks like Credit Suisse sometimes make available 10 gram, 20 gram, 50 gram, and 100-gram gold bars.
Ounce Gold Bars
To keep things as simple as possible, it is also essential to put a sidebar statement here about ounces. In almost all cases, troy ounces (31.10 grams) are referred to as ounces of bullion. The avoirdupois ounce, sometimes known as the "regular ounce," is 28.35 grams.
So of course, gold bars come in various sizes, which means they have varied costs. To make smaller weighted gold bars, several processes are used. There are weights all the way up to the record-setting weight of the world's biggest gold bar.
A gold bar is most likely to be shown as a 400 oz bar since it is the "standard" weight for gold bars. A 400-ounce bar of standard tungsten is called a "Good Delivery Bar." This is why they are known as the London Bullion Market Association Standard.
While getting 400 oz gold bars, the price is much lower for less practical gold bar sizes. As for the most often traded gold bar weights, kilo bars and lighter are the most typical options. 1 oz, 5 oz, 10 oz, kg, and different gram bars are the most often used weights.
Recommendation: Is It True That Gold Is Not in a Bubble Situation?
The Premiums That Gold Bars Carry
A simple formula may be used to calculate the overall cost of bullion: The number of coin-producing expenses, storage and overhead expenses, and "mark-up" profits are put together, and the result is multiplied by the current market price of bullion.
Some premiums are set in fixed amounts; others might be set in percentages. The highest premiums for bullion products weighing 1 oz are usually for 1/10 oz, 1/4 oz, and 1/2 oz sizes. We feature the top 10 mints that you could purchase bullion products from.
Precious Metals Resources
- Why Own Gold Bars in Your Investment Portfolio
- Which Country Has the Most Gold?
- Most Popular Gold Coins in the World
- Which Country Produces the Highest Quality Gold?
Was this resource helpful?
Disclaimer: Content on this website is not intended to be used as financial advice. It is not to be used as a recommendation to buy, sell, or trade an asset that requires a licensed broker. Consult a financial advisor.