How Much is a Gold Bar Worth?

Gold is often seen as a safe haven asset, particularly in times of economic uncertainty or market volatility. Its intrinsic value and limited supply make it a reliable store of value over the long term. One of the main reasons to consider investing in gold is its ability to act as a hedge against inflation.

When fiat currencies lose value due to inflation, gold tends to retain its purchasing power. This makes gold an attractive option for investors looking to preserve their wealth and maintain stability in their investment portfolios. Additionally, gold has a history of holding its value over time, making it a reliable asset to have in a well-rounded investment strategy.

What is a Gold Bar?

A gold bar is a piece of high-quality, pure gold that comes in a variety of sizes. Gold bars may also be referred to as bullion. Gold bars can be as small as one gram or 400 troy ounces. They are refined to a point of elemental purity, making them extremely valuable.

Gold bars have an innate, physical value, and their exact worth changes daily with the market. However, many investors include them in their portfolios because their value is often preserved even as paper currency loses value.

Factors Affecting the Value of Gold Bars

Several economic and consumer factors affect the value of gold bars.

• Inflation: During times of inflation, the dollar loses its value. Many investors flock to gold as a hedge, and as demand rises, gold’s value usually climbs.
• Economy: When the economy dips, investors typically purchase more gold to preserve their wealth. Similarly to times of inflation, as the demand for gold rises, so does its value.
• Supply and demand: There is only a limited supply of gold, and it’s not easily created. So as demand rises, the value of gold also climbs. Similarly, when demand drops and there’s an increase in supply, its value can dip.
• Interest rates: As interest rates fall, gold becomes more appealing than other safe investments like bonds. Similarly, when interest rates are high, interest in gold falls in favor of high-yield bonds.
• Investor sentiment: Investor sentiment trends with the changing economy. Times of poor performance may make investors wary of the market, causing them to flock toward commodities like gold. But when the markets are soaring, they may find gold less enticing.
• Purity and weight of the gold bar: The value of a piece of gold is heavily dependent on two factors: purity and weight. The heavier the gold coin or ingot, the more valuable it’ll be since it contains more of the metal. However, if a piece of gold isn’t fully pure, it’ll be less valuable since it’ll be contaminated with non-gold components.

Calculation of a Gold Bar's Worth

Gold bars are sold in a variety of weights, and their weight determines their value. For example, a gold bar that is one ounce will be worth much less than a gold bar that is one kilo. Gold bars are measured in troy ounces, which is different from an avoirdupois ounce.

An avoirdupois ounce is used to measure things like food whereas troy ounces are used to measure precious metals. One troy ounce is about 0.06857 pounds, which is about 10% heavier than an avoirdupois ounce.

The worth of gold is also dependent on its purity. A gold bar may be one kilo, but if it is only 75% gold, then 25% of its weight isn’t. That means it would be worth less than a one-kilo gold bar that is 99.5% pure.

Current Gold Bar Price by Weight

The value and price of gold bars fluctuate every day. So how much is a gold bar worth today?

How to Invest in Gold

If you’re looking to add gold or other precious metals to your portfolio, there are a few avenues you can take.

• Physical metal: You can buy the physical metal. Gold typically comes in the form of bars and coins and can be purchased online or at precious metal stores. You would hold onto your gold bullion, track its value and sell it to get your returns.
• Exchange-traded funds (ETFs): Gold ETFs allow investors to track the price of gold without holding the physical metal. Typically, gold ETFs hold a portfolio of gold bullion, and investors purchase shares of that portfolio, not the gold itself.
• Mining stocks: Another way investors can get indirect exposure to gold is through mining stocks. Through these stocks, investors purchase shares in the companies that do the physical mining of gold and production of the bullion.
• Gold futures: Gold futures are exchange-traded contracts where investors agree to buy a certain amount of gold at a certain price on a future date. This type of investment allows investors to try and buy amounts of gold for lower prices than the current market value. However, this type of investing can be very risky.
• Gold IRAs: A gold IRA is a unique individual retirement account where investors can allocate their retirement savings to gold. The IRS only allows precious metals to be held in a self-directed IRA.

Ways to Buy Gold

Gold comes in two forms: coins and ingots.

• Gold coin: Gold coins are often still made of elementally pure gold and typically come in 1 oz sizes, though some gold coins weigh less. Typically, gold coins are official currency and will have a face value much less than its actual worth. These coins are often favored by collectors and are struck with unique designs that aren’t found in circulation. These coins are considered currency and can be purchased from a variety of countries.
• Ingots: Ingots are more commonly referred to as gold bars. These are solid pieces of metals in rectangular form that come in a variety of weights. They do not have face value the way gold coins do. Some of them may have inscriptions, indicating their seller or containing a design. Gold ingots come in many more sizes than gold coins.

Investment Potential of Gold Bars

Gold is used in a variety of industries, from electronics, medicine, decoration, and jewelry. It’s also been a staple in currency, and gold coins can still be found in circulation today. It’s a necessary, tangible commodity, which is why many investors include it in their portfolios.

Gold is often seen as a sign of wealth and glamor. High-quality gold jewelry is expensive but still purchased since it’s seen as a symbol of status. But gold also has many practical uses. It can be used as a compound in medical treatments and in technology since it’s an excellent conductor.

Several industries rely on gold for aesthetic and practical purposes, and it’s not likely to fall out of demand any time soon. Gold has an innate value to it, which sets it apart from other investment vehicles. And though its price can fluctuate, many investors prefer to keep at least a portion of their wealth in gold. Gold’s value can often remain steady even as inflation changes the value of the dollar.

Recent Trends and Market Insights

Gold has largely remained steady in price in recent years, continuing an upward climb. Many investors have been flocking to gold after seeing its performance during the pandemic. Gold spiked in value in 2020, even as stock markets crashed. It held steady in 2021 but did drop from almost $2,000 in January 2022 to around $1,600 in October 2022. 2023 saw it climb in value again and it has continued to increase in 2024.

These insights into its performance during the pandemic and times of inflation have piqued many investor’s interest. Even as the dollar loses value during times of inflation, gold’s value remains steady. And though it did drop in 2022, it climbed back to pre-inflation highs.

Pros and Cons of Investing in Gold Bars

Unsure if gold would make a good addition to your portfolio? Here are some key advantages and disadvantages to consider.

Pros

• Highly liquid: As a commodity, gold is liquid. It is easily bought and sold, which can decrease risk in some portfolios.
• Tangible commodity: Gold is a physical, necessary commodity. It has an intrinsic value, even aside from its use in currency. Many industries rely on it, and it’s scarce.
• Hedge against economic downturns: Even as the economy begins to dip, gold remains steady. It fares well in times of inflation and is proven to hold steady even as the stock market dramatically dips. It can help mitigate losses incurred by poor market performance.

Cons

• Performance over time: Gold performs extremely well during times of economic uncertainty, but its growth doesn’t necessarily hold up to traditional markets when the markets are performing well. It’s a great way to diversify, but it’s not recommended to invest only in gold.
• Volatility: Gold prices fluctuate daily, just like other investments, so its value is not guaranteed.
• Storage: If you choose to invest in gold bullion, you’ll need a way to store it safely. The value will only hold if it is kept in mint condition, so you’ll need to ensure they are kept in a suitable environment. Additionally, you may need to purchase a safe or other means of keeping them protected.

Take the Next Steps to Gold Bar Investing

Gold can be a great way to diversify your overall holdings. Here are a few ways you can add gold to your portfolio.

Should Gold Be in Your Portfolio?

Every investor and portfolio is different, but many investors find gold to be a great way to diversify their holdings. Though its long-term performance may not rival more aggressive stocks, it can mitigate losses during times of poor market performance. And its intrinsic value instills confidence in many investors. If you’re thinking about adding gold to your portfolio, consider the different ways you can invest in gold and talk with your financial adviser to find the best product for you.

Frequently Asked Questions