Gold bars come in various sizes, from one gram to 400 ounces, and they are 99.99% pure gold, according to the London Bullion Market Association. The standard gold bar held as gold reserves by central banks and traded among bullion dealers is the 400-ounce Good Delivery gold bar.
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What are gold bars?
Gold bars are rectangular-shaped pieces of precious metal weighing anything from a fraction of an ounce to 400 ounces. They generally have a purity of .999 fine gold and 24 karats and are produced by national mints, private refineries, and gold bullion dealers.
While most investors recognize the benefits associated with investing in gold bars – including the fact that they are among the purest forms of the precious metal available on the market today – some are unaware that there are different types of bars that they can purchase. Here is a brief overview:
Minted Gold Bars are the most popular type of bar among investors, as they sport engraved designs and logos from national mints worldwide. They also tend to be among the purest forms of gold available, as most are .9999 or .9995 fine. Popular minted gold bars include those from PAMP Suisse and Valcambi Suisse.
Cast Gold Bars: These bars are produced by pouring molten gold into a mold and letting it cool until it takes the desired shape. Cast bars tend to be slightly less refined than minted bars – must have a purity of .9999 fine – but they offer a more rustic look for investors who prefer this aesthetic. The weights for cast bars also tend to be more diverse than minted bars.
Poured Gold Bars: These look similar to cast bars but differ in how they are produced. Instead of being poured into molds, poured bars are made by pouring molten gold directly onto table tops or other smooth surfaces until they solidify. The weight and purity offerings for poured bars tend to be similar to those for cast bars.
How are gold bars made?
Gold bars are created using a process called “gold casting.” Gold found in nature is not pure gold. It is mixed with other elements, such as silver and copper. To create pure gold, these impurities must be removed. The first step in gold casting is melting the gold into a liquid form. Once the gold is in liquid form, any impurities will surface. The impurities are then removed, leaving behind only pure gold.
Once the gold is pure, it can be poured into molds of different shapes and sizes to create gold bars. The most common type of gold bar is the nugget, which is a bar that has been carefully measured and weighed. Gold nuggets are then stamped with a mark that indicates their purity and weight. These bars are generally used for trading purposes and are not meant for everyday use.
What is the difference between gold bars and other gold products?
The main difference between gold bars and other gold products is that gold bars are typically made of pure gold, while other gold products may contain other metals or impurities. Gold bars are also generally more expensive than other gold products due to the higher purity of the gold.
How to store gold bars?
Before buying gold bars, an investor needs to consider how they will be stored. Gold bars come in many weights and sizes. The standard gold bar weights are 1 oz, 10 oz, 100 oz, and 1 kilo. Good Delivery Bars, which are the standard for the London Bullion Market Association (LBMA), are typically only available in sizes of 400 oz (approx 12.4 kg or 438 troy oz) and 1000 oz (approx 31 kg or 995 troy oz).
While storage options for gold bars vary, depending on factors such as ease of transport, certifications, costs, and safety concerns, the most important consideration when storing gold bars is security.
Gold bars should be stored in a secure location, whether a home safe, bank deposit box, or at a professional storage facility. When selecting a storage option, it is important to consider who will have access to the gold bars and the costs associated with storing them.
Home safes and bank deposit boxes are good options for investors who want to store their gold bars. Both provide security and insurance against loss or theft; however, there are some limitations to consider with each option.
Home safes can be expensive and difficult to transport if investors want to move their investment later. In addition, if an investor dies without disclosing the location of their home safe to their heirs, the gold could be lost forever. Bank deposit boxes provide easier access to stored items; however, banks can limit the items stored in a deposit box and may not insure against certain types of loss, such as theft from the bank itself.
For these reasons, many investors choose to store their gold bars at professional storage facilities specializing in precious metals storage. These facilities provide highly secure vaults and are insured against any loss, including theft, fire, or natural disaster.
Conclusion
Gold bars come in various sizes, from 1 gram to 1 kilogram. The standard size for a gold bar is 400 Troy ounces (about 27.3 pounds or 12.4 kilograms). Some gold bars are available in sizes 1 ounce, 5 ounces, 10 ounces, and 100 ounces.
