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How Much Does a Brick of Gold Cost?

Gold bars, coins with dollar signs and some one hundred dollars bills
Gold bars, coins with dollar signs, and some one-hundred dollars bills

Investing in gold bars is considered one of the best investment decisions that you can make. As an individual looking for suitable investment options, one of the choicest options available to you is to invest in gold. Gold is a precious metal that portends great benefits when you buy it. Among other precious metals are silver, palladium and platinum.  The price of a gold bar is determined by the size and where it was produced.  

The value of precious metal bricks otherwise known as bars is informed by prevailing spot precious metal price, which varies on a daily basis. Its price per ounce fixes the worth of precious metal bars. If you are thinking of investing your resources in precious metal via an IRA or as an avenue to diversify your portfolio, gold coins might prove beneficial. It is pertinent to note that the cost of a brick of gold may equally differ based on dealers and location. 

Precious metal bricks otherwise known as bars are much better investment options compared to coins. This is due to the fact that your investment is in the actual metals instead of the bullion value of the product.  The bullion value of the product is an additional benefit. Physical bars equally referred to as golden yellow bars are quite common and can be found in different weights and sizes. Compared to gold coins, they are more straightforward given the fact they’re liquid, portable and private. 

What Is the Cost of a Gold Bar? 

A good bar can be gotten for $750,000 when measured with 400 pounds of brick weight. This price is for a precious metal bar that weighs 400 ounces and 11.33-kilograms, or about 27.4 pounds. But the price will vary if you decide to go for a bar sourced from Credit Suisse or PAMP Suisse. This is due to different benefits that they offer. 

It is good to note that precious metals are measured in troy ounces. A troy ounce equals 31.1034768 grams. One troy ounce equals 1/10 of a standard ounce. However, most bars are consistent with troy ounces. 

Gold Bars or Bricks Explained 

Gold bullion otherwise known as metal bars is gold brick. Bullions are more stable when compared to orthodox currencies. More so, its valuation is determined mainly by the gold spot price, independent of deflation or inflation. 

They are also more stable when compared to money. A precious metal bar otherwise known as precious metal brick is usually shaped like a bar. It has the size as well as the purity well written on the front. Sometimes, there is a statement (mint) printed at the back of each bar. 

Precious metal bars are categorized into two, namely: 

a macro-photography of piece of gold rock on a black background
A macrophotography of a piece of gold rock on a black background

Cast Bars 

These are created by means of dispensing molten precious metals that become solid as it gets cold. The precious metal is differentiated from others by uneven surfaces and flaws. Cast bars are often less costly. 

Minted Bars

These are precious metal bars or bricks that are sliced from a single gold piece and are usually stamped. 

The bars appear smooth and they are more costly than usual bars, and often contain protective packaging and certifications. These are produced by refineries of repute. 

Among the refineries that produce them are: 

  • Royal Mint, Canada 
  • PAMP Suisse
  • Perth Mint 
  • Engelhard 
  • Credit Suisse 
  • Sunshine Minting 
  • Good Delivery 
  • US mint and others. 

Gold Sizes 

They come in a variety of sizes. The size that you may be able to purchase will greatly depend on your budget as your finances will determine your choice. They are usually stored in vaults. These sizes include: 

1 oz, Bars 

They are smaller bars that can be compared with a 1-ounce bar. They are convenient given their weight and size. The worth as well as demand for these bars is high and it’s worth is normally linked to existing market price. 

1 oz bar contains 1.097 ounces of gold and the price is about $2,000. 

1 Gram Bar 

These represent one of the smallest sizes but are a good place to start if you are in doubt of this kind of investment. This is a good option when one has a tight budget. It can also serve as an excellent gift. PAMP Suisse bars cost around $77.37 for each gram. 1-gram bar weighs about the same as paperclip. Also, a bar weighs about 0.222 pounds. 

10 oz Bar 

The price of this is between $18,621 and $19,459. The current precious metal spot price influences the cost of a bar. They are stocked by most mints and refineries to a good standard. Grapefruit weighs almost as much as a 10-ounce bar would weigh. More so, a bar is expected to weigh 0.685 pounds. Click on this link https://en.wikipedia.org/ to know more about sizes of gold.  

100 Grams

This is among the most widely known metric bars. A PAMP Suisse of this size will cost you $6520, while others may be similar. A 100 gram bar can be compared to a mobile phone. Usually, they weigh around 0.22 pounds. 

1000 Grams/1 Kg Bar 

These are among the biggest bars in size and are good for any individual seeking to make remarkable investment in gold. For instance, for one 24-karat, one-kilo will weigh about 2.24 pounds. Also, a 1-kilogram bar is priced at about $60,855. 

Variation In Price 

There are some factors that will affect the price of precious metals. Some of these factors are discussed below: 

Economic Situation 

The national or regional economic reality can affect the price of precious metal along with other related factors. During the time of COVID-19 and the ongoing Russia-Ukraine war, the economic uncertainty and crisis affected its price. 

There is also a relation between the stock market across the globe and precious metal price. When the stock market goes down, precious metal prices usually increase. Given its stability, it is regarded as a good hedge against global inflation. 

Inflation Rate 

Investing in precious metal is a good means to diversify and be protected against inflation. During inflation, the value of currency falls, prices of goods equally increase. However, precious metal can keep your funds stable. They are deflationary instruments. 

Forces of Demand & Supply

The price is influenced by demand. The price goes up when demand is high and there is a shortfall of supply. The price will not be significantly affected if the demand is not much and supply is high. The data which suggests that precious metal price across the globe has remained relatively stable for thousands of years is significant. 

Interest Rate 

Most times, the stock market impacts interest rates. As a result, interest rates are usually low during periods when stock market falls while gold prices spike. Simply put, these metals remain stable while the stock market on the other hand increases.  You can click here to know more about interest rates. 

Conclusion 

Gold is a go-to investment destination for anyone who wants to withstand inflation. Careful study and consideration is advised when one wants to venture into this investment. When confused or in need of clarification, research further or consult an expert. 

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