Holding gold bars as part of your investment portfolio offers insurance and diversification. Most investment portfolios will contain stocks, property and bonds but these ‘normal’ investments do not stand up well to uncertainty, inflation and geopolitical risk. This is where gold bars step in, to steady the ship. Their presence in your portfolio acts as a form of financial insurance.
But, it can be confusing knowing where to start. Gold bars come in a range of shapes, weights and sizes in order to accommodate the needs of as many investors as possible. If you have decided to buy a gold bar, it is important to know which gold bar best suits your investment needs and portfolio. Read on to find out more.
What is a gold bar?
A gold bar is a standard block of gold with a minimum purity of 99.5%. There are a number of gold bars available, from 400 oz bars down to 250g gold bars. The range means that there are weights and sizes to suit any level of investment.
Read more: What are Gold bars?
Are gold bars measured in ounces or kilos?
When you are trying to get a clear understanding of how investment grade gold is measured, it can be confusing to understand what unit of weight is used. Across the world you hear many different names for the units of measurement for gold such as Baht (Thailand) or Chi (Vietnam) but in the West you will only see investment-grade gold bars in multiples of either troy ounces or kilos.
The troy ounce differs from the more common avoirdupois (standard) ounce. One troy ounce is equal to 1.097 ounces. You will only hear the term; ‘troy ounces'', in relation to precious metals and gemstones. The measure’s origin is in Troyes, France and can be traced back to the Middle Ages.
One troy ounce is equal to 31.1g in the modern metric system.
The most important large gold bar is the London Good Delivery 400 oz bar. This bar is traded on wholesale markets and its price is quoted in US dollars per troy ounce. It is the equivalent to roughly 12.5kg which you may also see quoted in the media.
The COMEX 100 oz bar is also significant given the exchange’s dominance in the gold futures market.
Beyond 400 oz Good Delivery bars one will generally find that smaller bars are presented in both grams and ounces.
Which gold bar should I choose?
GoldCore only operates at the highest standard and will only ever buy and sell gold that has come from LBMA approved refiners and government mints.
We are pleased to be able to offer the following gold bars to buy:
- 1 Ounce Gold Bar: Our 1 oz gold bullion bars are made from investment grade gold bullion of at least 99.5% purity. Each one weighs exactly 1 troy ounce (31.1034768 grams).
- 250 gram Gold Bar: These bars have a gold content purity of at least 99.5%. This bar is popular amongst both high-net-worth investors and store of value buyers. The 250 gram gold bars are not only a great investment choice but it is easy to store and transport.
- 10 Ounce Gold Bar: This bar is also a great size. They weigh exactly 10 troy ounces (311.034768 grams) and have a purity of around 99.5% or above. These investment grade bullion bars are sold at slightly lower premiums than 1 ounce gold bars or coins
- 500 gram Gold Bar: Also coveted by both high-net-worth investors and store of value buyers alike. 500g gold bars are a great investment option for those wanting to purchase gold bars at lower premiums.
- 1 Kg Gold bar: The 1 kilo (32.1507 troy ounces) gold bars on the GoldCore platform weigh exactly 1 kg, with a purity of between 0.995% and 0.9999%. These 1 kg gold bullion bars are increasingly preferred by high net worth and institutional investors, especially those in Asia.
Investment-grade gold bars must have a minimum fineness of 995.0 parts of fine gold per thousand, as decreed by the London Good Delivery List, administered by the London Bullion Market Association (LBMA).
How much is a gold bar?
There are three factors that affect the price of a gold bar:
- The price of a troy ounce of gold
- How many troy ounces are in a bar
- The premium charged
A gold bar is worth the amount of troy ounces of gold it contains multiplied by the wholesale spot price for a troy ounce of gold.
For smaller denominations of gold bars, below 400 oz, then expect to pay an additional premium. This premium is to cover the costs that are involved in converting a large wholesale 400 oz gold bar into smaller retail products such as 1 oz gold bars. The premiums charged may also be reflective of any demand and supply factors for that specific gold bar.
Understandably you will find that premiums increase as the size of the gold bar decreases. This is due to the relatively stable costs of processing gold bars and the sale of them staying the same, but reorienting a larger percentage of the gold bar’s value, the smaller it is.
If the bar you are looking at is quoted in grams then you carry out the following calculation:
A troy ounce is equal to 31.1 grams, so to work out the 1kg gold price in the US divide 1,000 by 31.1 and multiply by the current spot price of gold.
Also read: How much is a gold bar worth?
Ready to Buy Gold Bars?
At GoldCore, we have a range of gold bars available to meet the needs of any investor looking to add gold investments to their portfolio. Whether you are interested in investing for the first time or are a seasoned investor, we have something for everyone.
To get started, all you have to do is to visit our website's “open account” page and follow the on-screen instructions to set up your trading account.
If you’re feeling unsure or have any questions, call our team on any of the following numbers:
We are here to answer any questions you may have and help you to the best of our ability. Reach out to us today for more information. We look forward to hearing from you.
Still feel like you don’t know enough about gold Find out all you need to know on our “What is Gold?”