Gold bar value depends on the prevailing market price of gold at a particular time. Prices always vary as dealers cost and profit with some tax if applicable are added up to the manufacturing cost.
On larger and heavier bars, fewer premiums are added on an ounce or kilogram of gold as the higher the price, the premium goes down. Most common gold bars weigh about 400 troy ounces which should not be confused with the food grade weight. Food grade weight measured in ounce is lighter than a troy ounce.
Gold bar has a volume of around 39 cubic inches and the heightened density of gold makes it look something like a brick. A unit of troy ounce is 31.1034768 grams and a gram of gold would come at about US$27 if gold prices were US$850 an ounce. gold 100gm bar gold 1kg bar
According to early October prices a 1000 gram gold bar was valued at US $27,617.49. Gold bars can be bought as light as one gram to a kilo or around 400 ounces for commercial purpose.
While weight of gold bars is measured in troy ounces, the purity is determined by carats different form they way diamonds weights are calculated. Over the years inflation has taken its toll, currencies have gone down in value leading to the upward prices for gold and gold bars. If the currency was backed by gold, it would have taken the price of just an ounce to well over US$52000 at today's market conditions.
Gold retains its value even when the value of currency fluctuates. An ounce of gold would get similar goods and services got fifty or sixty years ago. Value of an ounce has not changed but gold was much cheaper earlier. What has happened is that the currency value has gone down so much that it would need a bagful of money to buy the same goods and services worth an ounce of gold fifty or sixty years ago.
So whenever gold prices are discussed the value of gold at a particular time automatically comes to mind. Again purchasing power for gold has not changed much in the last 200 years with a few exceptional high seasons of big buying. Only the value of dollar has changed over the years and went down with a rising inflation.
Smaller gold bars cost 2% to 4% more than the price of gold or the value of gold content.
Gold bar ensures diversification of investment, protection of wealth and purchasing power.
Value of a bar can be easily calculated after taking into account the purity and fineness and weight on counter scale to the nearest ounce. Where gold forms most of the value but just short of half the weight, they are known as 'dore' bars and they come stamped with value of gold and the other metal.
No comments yet