How Much Is a Gold Bar Worth? (And How To Buy One)
Gold bars have long been considered a valuable investment option for those looking to diversify their portfolio or hedge against inflation. But how much is a gold bar really worth, and is it right for you and your investment needs?
What is a Gold Bar?
A gold bar is a piece of gold that’s been shaped into a bar, typically by private or government run bar producers. Some of the most popular bar producers are PAMP Suisse, Perth Mint, and Royal Canadian Mint. Molding the gold in bars helps those looking to make a larger investment in gold than typical coins would allow.
How Much is a Gold Bar Worth?
A 1-ounce bar of gold is worth close to $2000 at the time of writing. This price is not exact, and the price will change constantly throughout any given day. This is due to what's called the spot price. A spot price is the amount you would pay for the gold if you bought it “on the spot.” These prices are updated down to the minute, so they can vary depending on a variety of factors, such as premium, weight, purity, and the market.
What Affects the Price of Gold Bars?
Gold bars vary in price depending on their weight, spot price, premium, and purity. While these various factors have an effect on the price of a gold bar, its worth is not nearly as volatile as other assets like stocks.
Most Common Sizes & Types of Gold Bars
One of the most important factors that determine how much a gold bar costs is its weight. Gold bars come in various weights, ranging from a fraction of an ounce to several kilograms. The most common weight for one bar of gold is one ounce, but larger bars are also available, such as 10-ounce bars or 1-kilogram bars.
Larger gold bars require a larger investment but can provide more bang for your buck. The problem with buying larger gold bars is it will also take longer to liquidate them compared to coins or smaller bullion options. Determining which entry point to begin your diversification into gold can be daunting; that's why precious metal specialists at the U.S. Gold Bureau are trained to help you find the right starting point for portfolios of all sizes, whether it's a 1-gram bar or a 1-kilogram bar, we can help find the right entry point for you.
It’s important to note that the troy ounce most gold bars are weighed by is slightly different from a standard ounce. This is called a troy ounce and is roughly 31.1 grams, compared to the standard ounce, which is roughly 28.4 grams we’re all familiar with. This is a small distinction but an important one.
A critical factor determining a gold bar's value is its purity. Gold bars are available in different levels of purity, ranging from 99.9% to 99.999% pure. The higher the purity of the gold bar, the more valuable it is. The purity of a gold bar is important because it affects the weight of the gold. Gold is a dense metal, and impurities can add weight to the bar without adding value. A higher-purity gold bar contains more gold and is, therefore, more valuable.
The premium is the amount above the spot price that you pay for one bar of gold. The premium above the spot price that you pay for one bar of gold will depend on the dealer and other factors, but typically the premium on a one-ounce gold bar is around 5% to 10% above the spot price.
Generally speaking, the larger the bar, the lower the premium you'll pay per ounce of gold.
The premium on a gold bar is determined by the dealer's costs for producing and selling the bar. These costs include refining the gold, fabricating the bar, and shipping it to the buyer. The dealer needs to make a profit on the sale, which is why the premium is always above the spot price.
For example, as of May 2023, the spot price of gold is around $2000 per ounce. If you were to purchase a one-ounce gold bar with a purity of 99.9%, you could expect to pay a premium of around 5% to 10% over the spot price, depending on the dealer and other factors. This means that a one-ounce bar of gold with a purity of 99.9% could cost anywhere from around $2100 to $2200, depending on the premium and any additional costs. If you were to purchase a larger gold bar, such as a 10-ounce bar, the premium per ounce would likely be lower. For instance, a 10-ounce gold bar with a purity of 99.9% might have a premium of only 2% to 5% above the spot price.
It's important to note that the value of a gold bar can also fluctuate based on the buyer's location and currency exchange rates. For example, if you were to purchase a gold bar in Europe or Asia, you may have to pay a higher premium than you would in the United States due to higher transportation and insurance costs.
Another important consideration when valuing a gold bar is the potential for fraud or counterfeit products. Working with a reputable dealer like the U.S. Gold Bureau when buying or selling gold bars is important for every investor.
The current market price of gold is also a crucial factor in determining the value of a gold bar. The price of gold is determined by the spot price, which is the current market price for one troy ounce of gold. This price is set by major commodity exchanges such as the New York Mercantile Exchange (NYMEX) and the London Bullion Market Association (LBMA).
To get an idea of the value of a gold bar, it's important to check the current spot price of gold and then factor in any additional costs such as fabrication, shipping, and insurance.
Why Get a Gold Bar?
For those approaching retirement age, keeping your investments in a saving account may seem like the smart option, but there are many options to consider. Savings accounts lose a significant amount of purchasing power as inflation rises. A popular tool to hedge against inflation is to diversify your portfolio with precious metals like gold.
Any investor worth their salt will tell you that diversity is key to a balanced portfolio. Holding gold in your portfolio is a simple and easy way to manage risk and protect your investments. Gold has historically performed well during periods of high inflation. This means investing in gold would reduce your losses when other investments fail. While gold coins and other rare coins may be able to provide quick liquidity, gold bars are seen as a more long-term investment. This is in part due to its history of weathering economic downturns.
Buying Power During 1920
Buying Power During 2022
How To Buy a Gold Bar
It is easier than you may think to buy physical gold and other precious metals. The most common way to purchase a gold bar is through a licensed online retailer, such as the U.S. Gold Bureau. Through a retailer, you can browse products by their weight, quantity, and price, finding the right gold bar investment for your needs.
The United States Gold Bureau offers gold bars, gold coins, and other precious metals. Our trained precious metals experts are ready to assist you with all of your investment needs and can help answer any questions, whether you’re ready to buy or simply want to learn more about investing in gold or other precious metals. You can start the process to acquire gold bars and other gold bullion directly on our website, or you can call us at (855) 752-2302, and our precious metal experts will walk you through the process.
Once you receive your gold bar, it may be necessary to pay storage fees to keep it safe. Storing your gold bar at home can be risky, so many investors choose to store their gold bars in a secure facility, such as a bank vault or a private storage facility. With the help of the U.S. Gold Bureau, you can store precious metals at the Texas Bullion Depository, which is the only state-run precious metals repository in the world.
The Texas Bullion Depository guarantees that your precious metals assets are safe by using multiple overlapping layers of security to ensure a proper chain of custody. Whenever you need to liquidate your gold bars or other precious metals at the Texas Bullion Depository, the U.S. Gold Bureau can assist so you can receive cash for your precious metals at your convenience.
Overall, the worth of a gold bar can vary depending on the market forces and what type of gold bar you’re looking to invest in. It’s important for investors to keep a close eye on the market and to consider their specific investment needs to ensure they’re getting the best possible deal when investing in gold bars.
Gold and other precious metals can be a wise investment for new and seasoned investors alike. Investing in gold bars can be a good way to diversify your portfolio and protect your wealth against inflation. However, it's important to understand all of the factors that affect the value of gold bars before making a purchase. By doing your research and working with a reputable dealer like the U.S. Gold Bureau, you can make an informed investment decision that fits your financial goals and needs.