From pirate treasures to the secure vaults of international banks, gold bars have long been emblematic of wealth and prosperity. But the burning question on many minds is, “How much is a gold bar worth?”
Gold has been a popular investment for decades because it holds long-term value. It’s also a great investment portfolio addition to hedge against inflation.
Gold bars are known as bullion. If you can afford them, they are a wise investment because the price of gold increases with the cost of living.
You're not alone if you’re curious about investing in gold and learning how much a gold bar is worth. Most of us may never hold a gold bar in our hands, but investing in gold is a different story.
By the end of this article, you’ll know if gold is a good investment for you. If it’s not, you’ll have a few alternatives you can try instead to help boost your investment portfolio.
Are you ready to learn more about how much a gold bar is worth? Here are some prices as of August 30th, 2023:
|Gold Bar Type||Price*|
|400 oz gold bar||$778,220|
|100 oz gold bar||$194,555|
|1000 g gold bar||$62,257|
|1 pound gold bar||$28,372|
|1 oz gold bar||$1,945|
|1 g gold bar||$62.3|
What is a Gold Bar?
The questions, “What are gold bars?” and “Is gold a good investment?” often occur one after the other. To understand how this precious metal is valued, we must first learn more about a gold bar.
Beyond the obvious definition of gold bars manifesting gold formed in the shape of a bar, gold bars come in different sizes. These include:
- 1 gram
- 5 grams
- 10 grams
- 1 ounce
- 100 grams
- 1 kilogram
However, gold is valued in troy ounces, unlike the traditional ounce or gram you’d use in baking or cooking. This difference is notated with an “oz. t” marking that demonstrates the measurement is a troy ounce.
Indeed, a troy ounce weighs less than a traditional ounce. A single troy ounce is the equivalent of 0.91 traditional ounces.
Troy ounces are used to weigh all precious metals, including palladium, silver, and platinum. The “Good Delivery” bars you see in movies (those found in the back of an armored car or a sealed-tight bank vault) are actually 400 troy ounces.
Gold is often valued based on weight as well as purity. Like any other substance or commodity, the more pure it is, the more it costs.
How to Measure Gold Purity
Gold purity is measured in karats (“k”). While a gold bar is considered pure gold, there’s technically no such thing as a pure gold bar.
Without going too far into metallurgy and chemistry, filtering out every impurity found in gold is nearly impossible. This fact means that 24k gold is the closest to pure gold.
Most of the gold jewelry you see is made from gold and another alloy. The alloy, such as silver, makes the gold more durable to resist wear and tear.
Indeed, pure gold is malleable and easily indented. Without the alloys present to hold the gold together, it would deform with little pressure.
Because 24k is the purest form of gold, any other karat measurement is expressed as a fraction of 24. For example, 14k is 14 parts out of 24 gold, translating to a purity of 58.3%.
You can use this same formula to determine the purity of other types of gold. A piece of gold jewelry that is 10k is 10 parts out of 24 gold, or 41.7% pure gold, whereas 22k is 22 parts out of 24 gold, or 91.7% pure gold.
How Much is a Gold Bar Worth?
The value of a gold bar depends on the current spot price of gold. A gold bar typically weighs around 32 troy ounces, or 2.2 lbs, which is worth around $62,549. A 1 kg gold bar is worth around $57,870. A 100-gram gold bar is worth around $6,481. A 10-ounce gold bar can vary in price from around $13,245 to $20,301.
The price of a gold bar also depends on the premium and any additional costs. For example, a 99.9% pure one-ounce gold bar could cost between $2,100 and $2,200.
Gold bars are available in 1 oz, 5 oz, 10 oz, or 1 kg sizes. Credit Suisse PAMP gold bars are popular among investors because of their high quality and purity.
Buying gold bars is one of many long-term investment strategies. The going rate depends on several factors, including:
- Size of gold bar
- Market values
- Economic climate
- Supply and demand
Many investors choose gold as a hedge against inflation. As other investments may fall due to inflation, gold rises in value.
Where to Buy a Gold Bar
You don’t need hundreds of thousands of dollars to buy a Good Delivery bar if you want to invest in gold. You can purchase gold in smaller quantities, but you should ensure you’re dealing with a legitimate gold dealer before exchanging any money.
Below are a few of the most common and reputable sources from which you can buy gold. Peruse their websites to see which best fits your gold-buying needs.
The American Precious Metals Exchange sells many precious metals, including gold, silver, and platinum. It works with 18 different mints worldwide and sells over 20,000 products.
APMEX has served over 1.7 million customers over its 20+ years in business. It cultivates exclusive partnerships and offers the QuickShip program to provide next-day shipping to eligible customers.
If you want to buy gold coins, why not buy from BGASC? This precious metals dealer has an A+ Better Business Bureau (BBB) rating and offers competitive prices for their gold coins.
BGASC sells copper, platinum, silver, and gold. Orders ship the next business day, and those totaling over $199 ship free.
You can also purchase $199 in gold and ship it to the destination of your choice for free with JM Bullion. This precious metals dealer opened in 2011 and sells platinum, gold, and silver, among other commodities.
JM Bullion has sold over $9 billion in products and boasts 350,000 positive customer reviews. Located in Texas, this online precious metal dealer works directly with mints and distributors to find you the purest gold there is to buy.
If buying gold and storing it at the Canadian Mint sounds like fun, check out Vaulted. This website brags that buying gold can be easier “than ordering a pizza.”
Vaulted also lets you purchase gold and send it to your home or office. Simply pay the transaction and annual maintenance fee, and you’re ready to start investing in gold with Vaulted.
Pros and Cons of Buying Gold Bars
There’s something about owning a gold bar that can make you feel like you’ve reached a financial milestone. Here are some of the most common advantages and disadvantages of buying gold bars.
- Can be more stable than other types of investments
- Variety of weights (and corresponding budgets) to choose from
- Maintains value long-term
- You own a physical commodity
- Adds diversification to your portfolio
- Worldwide recognized value
- Storing safely can be expensive and inconvenient
- Gold transport companies charge additional fees
- You may have to pay sales tax on your purchase, depending on where you live
- Doesn’t earn interest or pay dividends
- Buying online can open you up to fraud
To learn more about the pros and cons of buying gold bars, check out our gold-selling guide.
Alternatives to Buying Gold Bars
If you’re concerned about the disadvantages of buying and owning gold bars, you’re not alone. Here are a few alternative ways to invest in gold.
A futures contract is an agreement between two parties that outlines buying and selling a particular commodity at a future time. For example, two people may sign a futures contract to exchange energy, currency, securities, livestock, or gold.
Futures are also one of the most direct ways to invest in oil. A futures contract can lock in a set price at a future date, benefiting sellers and buyers alike.
Participating in futures contracts, specifically with gold, can help you sell a gold bar in the future at today’s prices. Whether you make money or the buyer walks away with a steal is up to fate.
Exchange-traded funds (ETFs) work similarly to mutual funds and are often comprised of various assets. Some, but not all, ETFs are backed by gold.
Like purchasing gold bars, investing in gold ETFs can help limit your risk. You can also buy gold ETFs from most online brokers.
It’s essential to note that gold ETFs are backed by gold, not representative of any gold you invest in. Remember this distinction when you research gold ETFs.
Though it may seem self-explanatory, it’s worth mentioning that gold IRAs and traditional IRAs are not the same. Gold IRAs have their own account minimums, fees, and regulations.
Here are a few examples of companies that sell gold IRAs:
- Augusta Precious Metals
- Noble Gold
- Advantage gold
- Patriot Gold Group
- Goldco Precious Metals
- American Hartford Gold
- Birch Gold
- Oxford Gold Group
- Regal Assets
Gold IRAs are a type of self-directed IRA. Gold IRAs could be your best bet if you want to own physical gold and build up a retirement nest egg.
The days of the California Gold Rush are over, but that doesn’t mean you can’t invest in mines. Many available mining stocks let you share in the spoils without having to pan for gold in your local stream.
Unfortunately, mining stocks don’t necessarily share the same level of stability as other gold investments. Owning a single stock can be risky, so you should only invest as much as you can afford to lose.
However, mining stocks are long-term assets typically held for years. You can also purchase fractional shares of mining stocks through online stock brokers if you don’t have the funds to buy an entire stock.
Gold Bar Worth FAQs
Do I have to pay tax on the gold I buy?
Yes, depending on your state, you may have to pay tax on the gold you buy. However, most companies that sell gold maintain resources that help you determine what, if any, sales tax you owe on your purchase.
Can I return gold after I buy it?
Most gold-selling companies do not offer returns on gold purchases. Instead, you can participate in what’s known as “gold buyback programs” that allow you to sell your gold to the same company, potentially for a higher price.
Can you buy a gold bar at a bank?
Nine out of 10 banks do not carry gold bars at their physical locations. If you want to purchase a gold bar at a bank, it’s best to call and speak with a local representative or visit a branch in person to learn more about buying gold and setting up the transaction.
Is it safe to buy gold bars online?
Buying gold bars online is something most people do when they invest in gold. However, you should double-check any websites you visit that sell gold before you exchange your payment information.
How is the value of a gold bar determined?
The value of a gold bar is primarily based on gold prices or the spot price of gold, which is the current market price for one troy ounce of pure gold. The weight of the gold content in the bar multiplied by the spot price gives you the bar's value.
What is the typical weight of a gold bar?
A typical gold bar used in trade is approximately 400 troy ounces. However, gold bars come in different sizes, from 1 gram gold bars to larger gold bars weighing several kilos.
Are all gold bars the same weight?
No, gold bars come in various weights. For example, while you might find a 1 gram gold bar or a 10-ounce bar, most investors might prefer bars that weigh the same as others to ensure consistency in their investments.
What is the difference between minted bars and cast bars?
Minted bars are cut from a flat piece of gold and often have designs, while cast bars are made by pouring molten gold into molds. Cast bars tend to have a more rustic appearance.
Where can I buy gold bars?
You can buy gold bars from reputable dealers, online platforms like JM Bullion, or directly from reputable mints.
What should I consider when selling gold?
When selling gold, consider the current price of gold, the purity of your gold, any associated fees, and ensuring you're dealing with a trustworthy buyer.
How do gold bars differ from gold bullions or gold ETFs?
Gold bullions refer to gold in its physical form, including coins and bars. A gold ETF (Exchange Traded Fund), on the other hand, tracks the price of gold but doesn't always involve owning the physical asset. Investing in gold bars is a way to hold a physical asset, while a gold ETF provides a more passive investment method.
Why do people invest in gold?
Gold is seen as a safe haven asset, offering a hedge against economic downturns, inflation, and currency fluctuations. Its purchasing power remains relatively stable over time, making it a popular investment.
How does the price of silver compare to gold?
Silver and gold have different market dynamics. While both are precious metals, their price can vary based on supply, demand, interest rates, and other factors. However, in general, the price of gold is higher than silver.
Can I include gold in my retirement account?
Yes, some investors opt for gold IRAs (Individual Retirement Accounts) where they can hold physical gold bars or coins. Gold IRAs offer a way to benefit from gold's potential appreciation during retirement.
Is it cheaper to buy larger gold bars?
Often, larger gold bars come with lower premiums over the spot price of gold, making the per-ounce cost less than buying many smaller bars. However, they might be less liquid due to the higher overall price.
How do I ensure the authenticity of a gold bar?
Always purchase gold from reputable sources. Check for hallmarks and details about the production process. Additionally, the gold content and weight should align with what's advertised.
Is it necessary to store gold bars in a bank?
While not necessary, some investors choose to store their gold in bank vaults or specialized facilities for storage purposes. The choice often depends on the amount of gold owned and the investor's comfort level.
Remember, while gold is a stable and historically reliable investment, always consider the current economic climate, interest rates, and other factors before buying or selling.
Invest in Golden Opportunities with Gold Bars
Gold bars are a common and wise investment to hedge against inflation and diversify your portfolio. Many people think of gold bars as the only way to invest in gold, but that’s hardly accurate.
For instance, you can invest in gold coins, gold jewelry, gold IRAs, gold ETFs, and even gold-mining stocks. Each of these investments comes with its own set of risks and rewards.
We hope this article helped you determine how much a gold bar is worth and how to invest in gold if you don’t want to purchase this physical commodity. If you haven’t already added gold to your investment portfolio, now could be the best time.
Even if you don’t invest in gold right now or even this year, it’s still something to keep in the back of your mind. If you ever have some extra cash and want to focus on long-term investments, gold could be the ticket.
Now that you know how much a gold bar is worth, how will you invest in gold?