Throughout the years, gold has remained a popular asset, particularly during times of turmoil. Investing in gold provides a sense of financial security that traditional investments do not. This was especially evident during the pandemic, when gold reached an all-time high. But how much is a gold bar worth in 2022? Let’s take a look.
How Much Is a Gold Bar Worth 2022?
A gold bar is worth the amount of troy ounces of pure gold multiplied by the wholesale spot price for a troy ounce of gold.
Gold is measured in troy ounces, which differ from the more common avoirdupois ounces. Troy ounces are slightly heavier than a standard ounce, 1 troy ounce - 1.097 oz.
For example, a 10 oz gold bar contains 10 troy ounces of pure gold and would weigh 10.97 standard ounces. Therefore, a 1 kilo bar of gold contains 32.1507 troy ounces of gold.
A troy ounce is the standard measurement of gold on the international financial markets for large 400 oz. gold bars, and this is the price you will see quoted in the media. 400 ounce gold bars are the standard "good delivery" bars that are traded on the wholesale markets. The price fluctuates constantly during trading hours in reaction to supply and demand pressures. This price is known as the spot price for gold.
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. If you are buying a gold bar, you will pay an additional premium that covers the production, marketing and distribution costs of converting a large wholesale 400 oz gold bar into smaller retail products like 1 ounce gold bars. Premiums can also be impacted by the current supply/demand imbalances for specific gold bars.
The smaller the bar, the larger the premiums, as the fixed costs of processing are a larger percentage of a smaller value gold bar than they are for a larger value gold bar.
Factors That Influence the Value of Gold Bars
The value of a gold bar is determined by three factors:
The price of 1 troy ounce of gold
The amount of troy ounces of gold in the bar
The prevailing premium
The prevailing premium of a bar is determined by the current supply/demand fundamentals for that specific type of bar.
What Is a Gold Bar Worth Today?
As mentioned above, the key determinant of the value of gold bars is the spot price of gold. The spot price fluctuates, daily in response to supply and demand fundamentals in the wholesale market. This makes answering any questions you may have, such as “how much does one gold bar cost?” and “how much is 5 g gold bar worth?” dependent on that day's prevailing spot price and the premium for that specific bar.
Please note that when you come to sell a gold bar, a precious metals dealer will charge a percentage for this transaction in relation to the spot price. Depending on the supply/demand fundamentals for that product, this could be a percentage above or below the spot price for gold.
Are You Ready to Invest in Gold Bars?
Gold bars are a proven store of wealth over thousands of years of history. Investing in gold bars allows you to diversify the risks of your more volatile investments, such as stocks. These investments are easily affected by economic factors such as inflation/deflation, interest rates and other fluctuations. Gold bars, on the other hand, tend to perform when traditional asset classes like stocks and bonds do not. This is what provides an element of financial insurance for an investment portfolio.
We hope we’ve answered your question, “how much is a gold bar worth?”. If you’re ready to get involved in investing gold bars, Simply click on the green “open account” button at the top of our website and fill in your details. Alternatively, you can call us on one of the following numbers:
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We are happy to help answer any questions you may have.
Want to learn more about gold bars first? Find out everything you need to know and more on our “Gold Bars: The Complete Guide Before Buying”