A gold bar, also known as gold bullion or a gold ingot, is a quantity of refined gold that can be shaped into various forms. These bars are produced under standardized conditions, including specific manufacturing, labeling, and record-keeping practices. Larger gold bars, produced by casting molten gold into molds, are called ingots. Smaller bars are often made by minting or stamping gold sheets. The standard gold bar used by central banks is the 400-troy-ounce (12.4-kilogram) Good Delivery bar. This bar is widely traded among bullion dealers. Smaller bars, such as the kilobar (1,000 grams) and the 100-troy-ounce (3.1-kilogram) bar, are also popular for trading and investment due to their more manageable sizes. These bars usually have a minimal premium over the spot price of gold, making them suitable for small transactions between banks and traders. While most kilobars are flat, some investors, especially in Europe, prefer brick-shaped bars.
Types
Gold bars can be classified into two main types based on their production process:
- Cast Bars: These are made by pouring molten gold into molds and allowing it to cool and solidify. This process often results in bars with irregular shapes and uneven surfaces, giving each bar a unique appearance. Due to the simpler production process, cast bars are generally less expensive.
- Minted Bars: These bars are made from gold blanks cut from flat gold sheets. They have smooth, uniform surfaces due to the more precise and labor-intensive manufacturing process, which makes them more expensive than cast bars.
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Security Features
To prevent counterfeiting and ensure authenticity, gold bars often have security features. Common methods include unique serial numbers and certificates of authenticity. Some bars, even the smallest ones, are embossed with serial numbers that match their certificates. Minted bars are typically packaged in protective coverings or equipped with tamper-evident features. Additionally, some gold bars have a Kinegram, a type of hologram that adds another layer of security. These bars are known as Kinebars.
Standard Bar Weight Units
Gold is measured in troy ounces, where one troy ounce equals approximately 31.1 grams. This unit is heavier than the avoirdupois ounce used in the U.S. customary system, which is about 28.3 grams.
The standard gold bar held and traded internationally is the Good Delivery bar, weighing 400 troy ounces (12.4 kilograms). However, its actual weight can vary between 350 and 430 troy ounces, with a minimum purity of 99.5% gold. These bars are stored in secure vaults to maintain their quality and resale value.
Manufacturers
Various manufacturers produce gold bars in different sizes and weights. Notable manufacturers include:
- Baird & Co.
- Emirates Gold
- Heraeus
- Metalor
- PAMP
- Perth Mint
- Royal Canadian Mint
- Royal Mint
- Umicore
- Valcambi
- UBS
Largest Gold Bar
The largest gold bar in the world, produced by Mitsubishi Materials Corporation, weighs 250 kilograms (8,038 troy ounces). It measures 455 mm × 225 mm at the base and is 170 mm high. This bar was displayed at the Toi Gold Museum from July 11, 2005. In 2005, its value was around 400 million yen (approximately $3.7 million). As of January 2023, it is valued at approximately $15.1 million.
Conclusion
Gold bars play a significant role in global finance and trade. They come in various sizes and forms, each with unique features and production processes. Their widespread use and standardized nature make them a reliable and important asset in the financial world.
