How Much do Gold Bars Cost

Written by admin on December 29, 2008 – 4:36 pm -

When it comes to buy gold bars, all gold bars come in a range of sizes from 50 grams, 100 grams, 1 kilogramm, 1 ounce, 10 ounces, 100 ounces and 400 ounces, to give a broad indication. The thinner gold bars are often referred to as gold biscuits or gold wafers.

Of course the very wealthy can purchase the 400 ounce bars and these are usually stored in banks, but it is mostly countries and large businesses that would use gold in such quantities as a means of storing their wealth this way. For us ordinary mortals it is usually the 1 gram up to perhaps 50 or 100 ounce bars that we can afford.

There are many bars available in the market imported from all over the world. Some of the more well-known refineries of gold bars are Credit Suisse, Johnson Matthey, PAMP Suisse, Perth Mint, UBS and Rand Refinery to name but a few.

How Much do Gold Bars Cost?

Firstly it is very useful to have a comparison of the weights of gold. 100 grams equals 3.2151 oz Troy ounces and 31.1035 grams equals 1 troy ounce

Gold always sells at the current market value with a margin from the dealer.

The margin can be high or low depending on the dealer, packaging, any sales tax and freight. For tiny 1 gram bars the margin is going to be considerable, perhaps even the cost of the gold again, so this would not be a very viable purchase. Purchasing a 100 gram or 50 ounce bar would give you a drop in the margin and, as you are getting more into the professional markets and less into the 'consumer' market, packaging becomes less of an issue. After all you want to buy a gold bar, not some plastic and printed cardboard with it.

The Fineness you often see, refers to the purity of the gold. Gold purity is expressed in parts per thousand. So 995 is 995/1000 or 99.5% pure. Today, it is possible to produce gold up to 99.9999% purity and referred to as 999.

This explains why you have two bars of identical weight going for different rates. The variation would be the fineness of the gold. It would be referred to as either 995 or 999. The 999 being more expensive since it is better refined.

Source: goldprice.org


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Understanding Gold Bar Weights and Purities

Written by admin on December 29, 2008 – 4:02 pm -

Gold bars are normally classified into two broad categories of weight.  A large bar weighs more than 1000 g, a small bar weighs 1000 g or less. Bars are manufactured in different millesimal gold purities (or fineness), most ranging between 965 and 999.9.

UNITS OF WEIGHT

Around the world, bars can be denominated or traded in different units of weight to accommodate the preferences of regions or countries.  The most prominent units are the gram, troy ounce, tola, tael, baht, chi (or cay or luong), don and mesghal.

Although the London Good Delivery 400 oz bar, the world’s most important large bar, is traded in troy ounces on the London Bullion Market, and the international gold price is quoted in US dollars per troy ounce, there is a worldwide trend for small cast and minted bars to be denominated in grams.

Although the list below provides a broad indication of where the listed units of weight for small bars are widely used, in many countries a variety of units is used.

Gram: International
Troy ounce: Mainly English-speaking countries: USA, UK and Australia
Tola: Mainly Indian Sub-Continent and Middle East
Tael: Mainly Hong Kong and Taiwan
Baht: Thailand
Chi: Vietnam
Don: South Korea
Mesghal: Iran

LARGE GOLD BARS

There are three prominent large bars:
400 oz: Approximate weight.  London Good Delivery, if manufactured by a LBMA-accredited refiner.
100 oz: Approximate weight.  COMEX Good Delivery, if the brand is accredited to COMEX.
3000 g: Shanghai Gold Exchange Good Delivery, if manufactured by a SGE-accredited refiner.

Some refiners advise that other large bars are also occasionally made to precise or approximate weights.  For example, in ounces (250 oz and 50 oz) and in grams (2 kg, 5 kg and 10 kg).

SMALL GOLD BARS

Among surveyed manufacturers, small bars around the world are available in a diverse range of more than 50 different cast or minted weights. However, by far the most important small bar, widely used by fabricators and investors around the world, is the cast kilobar (1000 g).

GOLD BAR PURITIES

The declared purity (or fineness) of a bar’s gold content is important as it enables its weight of “fine gold” to be calculated.

The purity is normally marked in parts gold per 100, 1,000 or 10,000 parts.
For example, the same gold purity (99.99% by weight) can be expressed as follows:
9999 9,999 parts gold in 10,000 parts
999.9 999.9 parts gold in 1,000 parts
99.99 99.99 parts gold in 100 parts

Although there is generally a widespread preference for small barswith a precise millesimal purity of 995 or 999.9, bars are also manufactured in other purities.

Large gold bars

In the case of some large bars, the gold fineness can vary.  For example, as London Good Delivery 400 oz bars and COMEX Good Delivery 100 oz bars are permitted to vary between 995.0 and 999.9, a mark of 995.8 or 998.7 or 999.6 might be stamped on a bar.

Small gold bars

Although there is generally a widespread preference for small bars with a fineness of 999.9 or 995, bars are also manufactured in other purities. Although the table below broadly indicates where specific purities for small bars are popular, in many countries bars are available in a variety of purities.

999.9: International
999: Mainly Indian Sub-continent
995: Mainly Middle East and Indian Sub-continent
990: Hong Kong
965: Thailand

Source: Gold Bars Worldwide


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Gold Bar Types

Written by admin on December 29, 2008 – 3:43 pm -

Gold bars are classified into two types, dependent on their method of manufacture: cast and minted.

A gold bar is broadly defined as a cast or minted gold item, regardless of shape, which is made by a recognized bar manufacturer.  It is normally issued at a low premium above the prevailing value of its fine gold content.

The markings on bars are mainly functional, recording where required the name of the manufacturer or issuer, the bar’s weight and gold purity, and a serial number.

However, it can be noted that the characteristics of bars manufactured worldwide can vary with many widely traded bars having their own distinctive features.

For example:
• London Good Delivery “400 oz” bars have variable weights and purities, and the weight is not normally recorded on the bar.
• The minimum or specified gold purity of bars, accepted as “good delivery” by leading associations and exchanges, can range from 99% to 99.99%.
• Most minted bars manufactured worldwide include a design or motif on the reverse side as a standard feature.
• While most cast bars record a serial number, like gold coins most small minted bars manufactured worldwide do not.
• Many cast bars have few or no markings, and variable weights and purities, when produced mainly for jewellery, industrial and other fabricators.

It can also be observed that the bulk of bars manufactured worldwide is absorbed by jewellery, industrial and other fabricators, and that all cast and minted bars have the capacity to be used by both fabricators and investors, when issued or available at a low premium above the prevailing value of their fine gold content.

CAST BARS
Cast barsare normally produced directly from gold that has been melted. However, the way in which melted gold is used in their manufacture can vary. The traditional method is to cast (i.e. pour) gold, which has been melted in a crucible, into a mould with appropriate dimensions.

A modern method, now widely used to manufacture a smaller cast bar, is to melt, in a furnace, a measured weight of gold granules or cut pieces of gold that have been placed in a mould with appropriate dimensions.

Another modern method, used to create a cast bar that is long and flat, notably for the manufacture of minted bars, is to pass melted gold through a die, which has a specified width and thickness and has been clamped between cooling blocks, in a continuous casting process.

Markings, if required, are usually applied manually or by a press. When manufactured in an open mould, most cast bars are “inclined” (i.e. tapered) in shape to facilitate their removal from the mould.

Consequently, the dimensions (length and width) of the top and base surface areas are not normally the same.  While the top surface is usually smooth, the base surface and sides tend to be relatively rough. Although cast bars are normally rectangular (broad or narrow, flat or inclined), some refiners also manufacture them in other shapes (e.g. rod, round, square).

MINTED BARS
Minted barsare normally cut from a cast bar that has been rolled to a uniform thickness.  The cutting is usually done with a die to create blanks that have the required dimensions and weight.

All the surfaces (top, base and sides) are smooth and even.  Markings are normally applied by a minting press. Although most minted bars are rectangular, they are also manufactured in a variety of other shapes (e.g. round, square, oval).

Minted “pendant” bars, which incorporate a hook or hanger so they can be worn, are also manufactured.

Terminology: minted bars are also referred to as ingots, and in some countries as wafers, minted products or “coins”, when the shape is round.

FURTHER DEFINITIONS
The following are broad definitions and classifications that are used by The Industry Collection of Gold Bars Worldwide.

Unwrought bars

The Industry Collection classifies low purity cast gold bars(i.e. newly- mined dore? bars and bars made from melted down scrap), and refined cast gold bars used for fabrication or investment purposes, as unwrought bars.

It also classifies minted gold barsas unwrought bars for fabrication or investment purposes, when they are manufactured by a recognized bar manufacturer, include official markings, and are known to have been issued at a low premium above the prevailing value of their fine gold content.
However, it can be noted that, while some countries classify minted gold bars as “unwrought”, others classify them under some other category, notably as “other semi-manufactured forms” or as “other articles of precious metal”.

Investment bars

The Industry Collection also classifies a cast or minted bar as an investment bar, when known to have been issued by a recognized bar manufacturer or issuer at a low premium above the prevailing value of its fine gold content.

Ornamental bars

Within the Industry Collection, this classification applies to gold bars that are issued at a fixed price or at a high premium above the value of their fine gold content.  This would include the limited edition of proof “Fine Art” bars from Singapore, and “model bars” from South Korea.

Note on pendant bars

The Industry Collection normally classifies minted pendant gold bars, i.e. those that incorporate a hook or hanger so they can also be worn, as investment bars.  This classification is applied when the bars are issued by a recognized bar manufacturer or issuer, include the same official markings as standard minted bars, and are issued at a low premium above the prevailing value of their fine gold content.

CATEGORIES OF GOLD BARS

Cast and minted bars from around the world can be grouped into more than 50 categories.  For concise information and an illustration of each category, refer to the International Bar Group Register, “Categories of Gold Bars”.

Source: Gold Bars Worldwide


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