Gold bar explained

A gold bar, also known as gold bullion or a gold ingot, refers to a quantity of refined metallic gold that can be shaped in various forms, produced under standardized conditions of manufacture, labeling, and record-keeping. Larger varieties of gold bars, produced by casting molten metal into molds, are called ingots. Smaller bars are often created through minting or stamping from rolled gold sheets. Central banks typically hold the standard 400ozt Good Delivery gold bar in their gold reserves and it is widely traded among bullion dealers. Additionally, the kilobar, weighing 10002NaN2, and the 100ozt gold bar are popular for trading and investment due to their more manageable size and weight.[1] These bars carry a minimal premium over the spot price of gold, facilitating small transfers between banks and traders. While most kilobars have a flat appearance, a preference for brick-shaped bars exists among some investors, particularly in Europe.[2]

Types

Gold bars are classified based on their production process into cast or minted forms, each differing in their appearance and market value. Cast bars, similar to ingots, are formed by pouring molten gold into a mold shaped like a bar, then allowing it to cool and solidify. This method often results in bars with irregular shapes and uneven surfaces, granting each bar a unique identity and making them easily recognizable. Due to their relatively simple production process and minimal handling, cast bars are generally less expensive than their minted counterparts.

Minted bars are made from gold blanks, which are precisely cut from a flat gold sheet to achieve the desired dimensions. These bars are characterized by their smooth and uniform surfaces, reflecting a more refined and labor-intensive manufacturing process.

Security features

Manufacturers have developed measures to ensure the authenticity of gold bars and to protect them against counterfeiting or theft. The most prevalent method involves marking bars with unique registered serial numbers or issuing a certificate of authenticity. Some refineries emboss even the smallest bars with serial numbers, which should correspond with the numbers on their associated certificates.[3]

In contrast to cast bars, which may be handled directly, minted bars are typically enclosed in protective packaging or equipped with tamper-evident technology to deter tampering and prevent damage. Additionally, a security feature known as a Kinegram, a type of hologram, can be embossed directly onto a gold bar. Bars containing this feature are referred to as Kinebars.[4]

Standard bar weight units

Gold is measured in troy ounces, often simply referred to as ounces when the reference to gold is evident. 1ozt. The troy ounce is heavier than the avoirdupois ounce, a commonly used unit for measuring weight in the United States customary system. 1oz.[5]

The standard gold bar held and traded internationally by central banks and bullion dealers is the Good Delivery bar with a nominal weight. However, its precise gold content is permitted to vary between and . The minimum purity required is 99.5% gold. These bars must be stored in recognized and secure gold bullion vaults to maintain their quality status of Good Delivery. The recorded provenance of this bar assures integrity and maximum resale value.[6]

Manufacturers

ManufacturerBar sizes
GramsOuncesTaelsTolas
122.551020501002505001,00012.55101004001123510
Baird & Co.[8]
Emirates Gold[9]
Heraeus[10]
Metalor[11]
PAMP[12] [13]
Perth Mint[14]
Royal Canadian Mint[15] [16]
Royal Mint[17]
Umicore[18]
Valcambi[19] [20]
UBS[21]

Largest gold bar

The world's largest gold bar stands at, measuring at the base and high with 5 degree draft angle (equal to). It was manufactured by the Mitsubishi Materials Corporation, a subsidiary of Mitsubishi. It went on display at the Toi Gold Museum on 11 July 2005. Its gold content was valued in 2005 at 400 million yen (approximately US$3,684,000 at the time).[22] [23] [24], it is worth approximately US$20.1million.[25]

See also

Explanatory notes

Notes and References

  1. Web site: US and European Gold Trading.
  2. Web site: What is a gold bar?. dead. https://web.archive.org/web/20100619042515/http://goldprice.org/buying-gold/2006/06/what-is-gold-bar.html. 19 June 2010. 31 July 2010.
  3. Web site: Frequently Asked Questions . . 24 April 2019.
  4. Web site: KINEBARS®. Gold Bars Worldwide. 15 May 2017. live. https://web.archive.org/web/20160304064636/http://www.goldbarsworldwide.com/PDF/NBA_79_Kinebars_Gold.pdf. 4 March 2016.
  5. Web site: Topi . 1 June 2024 . 1 Ounce . 28 October 2016 . Topi.vn.
  6. Web site: Full List of Official Good Delivery Rules . lbma.org . April 11, 2012 . dead . https://web.archive.org/web/20120330102927/http://www.lbma.org.uk/pages/index.cfm?page_id=28&title=good_delivery_rules . March 30, 2012 .
  7. This is the official rate of taels in mainland China since the country implemented the metric system. In Taiwan and Hong Kong, a tael is equivalent to 37.429 g.
  8. Web site: Baird & Co Gold Bars. Baird & Co.. 10 May 2017. live. https://web.archive.org/web/20171201200840/https://www.bairdmint.com/gold/bars#limit=45&format=html. 1 December 2017.
  9. Web site: Investment Bars : Rectangular Gold Bar. Emirates Gold. 10 May 2017. live. https://web.archive.org/web/20170519123602/http://www.emiratesgold.ae/rectangular-gold-bar.html?submenuheader=0. 19 May 2017.
  10. Web site: Gold bars. Heraeus. 10 May 2017. live. https://web.archive.org/web/20161019213515/https://www.heraeus.com/en/hmm/products_and_solutions_hmm/physical_supply/gold_bars/gold_bars.aspx. 19 October 2016.
  11. Web site: Metalor Gold Bars. BullionByPost. 10 May 2017. live. https://web.archive.org/web/20160623202100/https://www.thegoldbullion.co.uk/buy-metalor-gold-bars/. 23 June 2016.
  12. Web site: Cast Bars . . 10 May 2017 . live . https://web.archive.org/web/20170606095303/http://pamp.com/castbars . 6 June 2017.
  13. Web site: Minted Ingots . . 10 May 2017 . live . https://web.archive.org/web/20170606142724/http://pamp.com/mintedingots . 6 June 2017.
  14. Web site: Perth Mint Spot Prices. Perth Mint. 10 May 2017. live. https://web.archive.org/web/20170416155351/http://www.perthmint.com.au/metalprices.aspx. 16 April 2017.
  15. Web site: Gold Wafers The Royal Canadian Mint. www.mint.ca. 2019-08-21.
  16. Web site: The Mint's Refinery Services The Royal Canadian Mint. www.mint.ca. 2019-08-21.
  17. Web site: Gold Bars Buy Gold Bars Royal Mint Bullion . . en. 10 May 2017. live. https://web.archive.org/web/20170617203259/http://www.royalmint.com/bullion/products/rmr-gold-and-silver-bars. 17 June 2017.
  18. Web site: Investment Bars Gold. Umicore. 10 May 2017. live. https://web.archive.org/web/20170513025158/http://pmm.umicore.com/en/products/investment-bars/gold. 13 May 2017.
  19. Web site: Good Delivery Gold bar. Valcambi. 10 May 2017. live. https://web.archive.org/web/20170610041659/http://www.valcambi.com/products-and-metals/cast-products/au/400-oz/good-delivery-gold-bar/. 10 June 2017.
  20. Web site: 1 g Minted Gold bar. Valcambi. 10 May 2017. live. https://web.archive.org/web/20170508041048/http://www.valcambi.com/products-and-metals/minted-bars/au/1-g/1-g-minted-gold-bar/. 8 May 2017.
  21. Web site: UBS Gold Bars - Suisse Gold - Precious Metals Dealers.
  22. Web site: Historical Exchange Rates . OANDA Services . 14 January 2010 . live . https://web.archive.org/web/20110202154335/http://www.oanda.com/currency/historical-rates . 2 February 2011.
  23. Web site: The Japan Journal . November 2005 . Three Diamonds Cast Gold-Medal Gold Bar . March 10, 2010 . dead . https://web.archive.org/web/20110722111143/http://www.japanjournal.jp/tjje/show_art.php?INDyear=05&INDmon=11&artid=8316a817e8ec467bca342634350f8202&page=1 . 22 July 2011 .
  24. Web site: Japan Times . June 17, 2005 . Mitsubishi makes record-size gold bar . March 10, 2010 . live . https://web.archive.org/web/20150531011656/http://www.japantimes.co.jp/news/2005/06/17/news/mitsubishi-makes-record-size-gold-bar/ . May 31, 2015.
  25. Web site: Gold Spot Price . GoldHub . World Gold Council . 2020-08-18.

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