How much is a gold bar worth ?

Twice a day in London, the London Bullion Market Association quotes gold. The spot gold price is a snapshot of the value of an ounce of gold at a given time. Determining the price of gold depends on several factors:

• Supply and demand: currently, some countries and central banks are increasing their gold reserves. Demand is therefore increasing;
• Central banks and their economic policies;
• The different international geopolitical situations.

The price of gold is outside the traditional stock market. It is not linked to a state, an institution or a society. The financial health of mining companies has no link with the daily price of gold.

To obtain the price of a gold bar, you will need to add the following information to these elements:

• The intrinsic value of the ingot: it corresponds to the weight of gold contained in the ingot multiplied by the price of the ounce of gold;
• Size: the larger the ingot, the easier it is to melt. Its price per kilo is therefore lower than an ingot;

The gold market is enjoying great success these days. Opportunities are multiplying but not all are good ones to seize. This is why you should buy your bullion from a trusted and reputable partner like Gold Union. Several indications are marked on the ingots:

• The purity of 999.9: this means that the bar is produced from pure gold;
• The name of the smelter: this mention is important, because the reputation of the smelter can vary the premium upon resale;
• The serial number;
• Gross weight.

The professional must also issue you with a test report on which all legal notices appear.

The price of gold varies but we can say, as an indication, that an ounce of gold is priced at 1838 euros. On this basis, we can therefore determine the price of a pure gold bar. Be aware that there are different sizes of bars. Here are some examples:

• Bar 12.5 kg;
• 1 kg ingot: approximately 53,800 euros;
• 500 gram ingot: around 30,000 euros;
• 100 gram ingot: around 6,000 euros;
• 20 gram ingot: approximately 1,200 euros.

When the weight of pure gold in an ingot is less than 100 grams, the bar is then called an “ingotin”. There are several advantages to investing in a 100 gram bar:

• Ease of storage;
• The price by weight is higher than a one-kilo ingot;
• The price of ingot is more accessible;
• Ease of resale;
• Acquisition allows you to complete a collection.

Gold remains one of the most expensive precious metals on the market. Global natural reserves are low and extraction requires know-how and experience and generates high costs. If you want to invest, you can choose another precious metal: silver. It also exists in the form of investment coins or bars of different sizes and weights. Unlike gold, the price of silver is lower (around 20 euros per ounce) and therefore accessible to more investors.

The value of your gold bar  will vary over time. The first element that comes into consideration is the price of gold. Particularly in times of crisis, the price of gold increases. Its role as a safe haven is used by investors. Other criteria must also be taken into account, including the bonus. It expresses the difference between the intrinsic value of the bar and the sale value. For example, a gold coin with a face value of 5 euros and an intrinsic value of 10 euros can be sold for 15 euros. The difference between the sale value (15 euros) and the intrinsic value (10 euros) then determines the premium (15 – 10 = 5). The premium is said to be 50%. This added value can only be realized if the item sold has been stored in optimal conditions. For this, experts recommend:

• Depositing gold bars and coins in a safe. At home, you can sell them whenever you want. In banking, the level of security is higher. In return, you must respect the rules of the establishment and therefore cannot come and collect your bars whenever you want;
• A minimum of handling: any removal outside its case may damage your ingot. It can fall, your sweat can attack the patina or corrode the surface of the metal;
• A separation between the gold bars: they must not touch each other, otherwise there is a risk of damage appearing.

Gold is a fragile metal. Usually, it is mixed with other metals, including silver, to solidify it and thus create jewelry. In the case of an ingot, the use of an alloy is impossible. The purity of an ingot must be greater than 99.5%. This is why it is strongly recommended to store your bars and coins in a dry place, away from light and on a clean cloth.

Gold Union agencies welcome you all year round. You can make an appointment with one of our advisors or ask your question via our e-commerce site. Gold Union experts will detail our range of gold investment coins, as well as gold or silver bars.