A gold bar, also known as gold bullion or a gold ingot, is a quantity of refined gold shaped into various forms and produced under standardized conditions of manufacture, labeling, and record-keeping. Larger gold bars, made by casting molten metal into molds, are called ingots. Smaller bars are created through minting or stamping from rolled gold sheets. Central banks typically hold the standard 400-troy-ounce (12.4-kilogram) Good Delivery gold bar in their reserves, which is widely traded among bullion dealers. The kilobar, weighing 1,000 grams (32.15 troy ounces), and the 100-troy-ounce (3.1-kilogram) gold bar are popular for trading and investment due to their more manageable size and weight. These bars carry a minimal premium over the spot price of gold, facilitating small transfers between banks and traders. While most kilobars are flat, some investors, particularly in Europe, prefer brick-shaped bars.
Types
Gold bars are classified into two types based on their production process: cast bars and minted bars.
- Cast Bars: Made by pouring molten gold into a bar-shaped mold and allowing it to cool and solidify. They often have irregular shapes and uneven surfaces, making each bar unique. Cast bars are generally less expensive due to their simple production process.
- Minted Bars: Made from gold blanks precisely cut from a flat gold sheet. These bars have smooth and uniform surfaces, reflecting a more refined and labor-intensive manufacturing process.
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Security Features
Manufacturers ensure the authenticity of gold bars and protect them against counterfeiting or theft by marking bars with unique serial numbers or issuing certificates of authenticity. Minted bars are typically enclosed in protective packaging or equipped with tamper-evident technology to deter tampering and prevent damage. Some gold bars feature a Kinegram, a type of hologram, embossed directly onto the bar, known as Kinebars.
Standard Bar Weight Units
Gold is measured in troy ounces, which is heavier than the avoirdupois ounce used in the United States. One troy ounce equals 31.1034768 grams, while one avoirdupois ounce equals 28.349523125 grams.
The standard gold bar held and traded internationally by central banks and bullion dealers is the Good Delivery bar, which has a nominal weight of 400 ozt (12.4 kg). The gold content of these bars can vary between 350 ozt (10.9 kg) and 430 ozt (13.4 kg), with a minimum purity of 99.5% gold. These bars must be stored in recognized and secure gold bullion vaults to maintain their Good Delivery status.
Manufacturers
Various manufacturers produce gold bars in different sizes, measured in grams, ounces, taels, and tolas. Some notable manufacturers include Baird & Co., Emirates Gold, Heraeus, Metalor, PAMP, Perth Mint, Royal Canadian Mint, Royal Mint, Umicore, Valcambi, and UBS.
Largest Gold Bar
The world’s largest gold bar weighs 250 kg (8,038 ozt) and measures 455 mm × 225 mm at the base and 170 mm high. It was made by Mitsubishi Materials Corporation and is displayed at the Toi Gold Museum. Its gold content was valued at approximately US$3,684,000 in 2005 and around US$15.1 million as of January 2023.
Conclusion
Gold bars, also known as gold bullion or ingots, are standardized forms of refined gold used for trading and investment. They come in various sizes, from large cast bars to smaller minted bars, each with unique characteristics and production methods. Central banks and bullion dealers commonly trade the standard 400-troy-ounce Good Delivery gold bar. Gold bars are authenticated through serial numbers and certificates, and often include security features like tamper-evident packaging and holograms. The gold bar market includes a variety of sizes produced by numerous reputable manufacturers, catering to both large and small investors. The world’s largest gold bar, weighing 250 kg, exemplifies the value and significance of gold in global economies.