What is an ingot ?

In the gold market, investors have a wide range of coins and bars at their disposal. The coins particularly appeal to collectors, but also to those who wish to make their first investment in gold. For example, the 10 Francs Napoléon coin, also called “Louis d’Or”, sells for around 200 euros. It can be a good introduction, but the particularity of the ingot also lies in its presence. However, an ingot weighing 500 grams will cost nearly 30,000 euros, which puts it out of the reach of many budgets. To remedy this, the founders decided to create smaller and more affordable ingots.

But then, why buy a bar ? Gold is a safe haven. When economic or geopolitical crises erupt, the various stock markets tend to slow down or even fall. At the same time, currencies can devalue and inflation can spread to countries. The money you then have in your bank accounts, or invested in stocks and other bonds, loses value. To buy a baguette, you no longer need 1 euro, but 1.50 euros. This is the loss of purchasing power. Investors are looking for ways to protect themselves, and precious metals, including gold and silver, are protection products. The price of gold varies depending on the period, but it remains stable over time and can even increase. 

Bars make it easier to purchase gold. Smaller, lighter and less expensive, it allows diversification of its assets. Gold is not an investment product like any other. It has no link with the economic situation of companies and has no dependence on States. On the contrary, different Nations and central banks seek gold to protect themselves and build up reserves. In addition, gold exists outside of stock prices (which are only a reflection of the value of gold) since it is used in the manufacture of jewelry, but also in different industries.

How is the price of an ingot determined ?

The price of an ingot depends on several factors which may vary:

• The relationship between supply and demand: mining and various other sources of gold products determine a certain amount of gold available on the market each day. This stable figure must be linked to demand. Industries, governments and jewelry are the primary consumers of precious metals. It is therefore mainly they who cause the price to fluctuate;
• Economic, monetary, political crises: these factors have a direct impact on the health of businesses, and therefore on investor morale. To avoid losing money, they turn to gold, the safe haven metal par excellence. It is for this reason that at the outbreak of the war in Ukraine, the price of gold reached its highest level;

This gold quotation takes place twice a day in London, at the London Bullion Market Association. The LBMA defines the spot price, the price of gold at a specific time. This price serves as a reference for transactions until the price is revalued (in the afternoon or the next day). Currently, a troy ounce of gold is worth around 1,800 euros.

Silver has the same characteristics as gold, but has a lower value. You can therefore buy a silver bar with a price per ounce of silver of around 20 euros.

What is the weight and price of an ingot ?

The term ingot does not have the same meaning on the gold market and on the silver market. Any bar weighing less than or equal to 500 grams is considered a bar on the gold market. For silver, ingots represent silver bars weighing less than 100 grams. There are therefore several weights and sizes of gold bars that you will discover here:

• 5 grams: around 300 euros;
• 10 grams: around 600 euros;
• 20 grams: around 1,200 euros;
• 50 grams: around 3,000 euros;
• 100 grams: around 6,000 euros;
• 250 grams: around 15,000 euros;
• 500 grams: around 30,000 euros.

The purchase of a gold bar or silver is an investment that must be made following some precautions. The selling company must give you a test report when purchasing. This certificate must include the elements:

• Gross weight;
• Quantity of gold or silver;
• Name of founder,
• Serial number;
• Signature of the tester.

The gold and silver market is experiencing a resurgence of fake bullion. You must therefore pay attention to ingots made with lead, all or in part, but also to the certificate. The slightest doubt should alert you. To protect yourself, call on recognized professionals like Gold Union.

Finally, you can choose your bar according to its country of issue. The Swiss issue allows you to obtain ingots with a neat presentation and without alteration. In France, ingots display variable weights, within the limits of the legal framework. The thickness is greater and the appearance less flattering. This does not detract from the value by weight, but resale may be impacted.

Gold Union professionals offer the purchase and sale of gold or silver bars and ingots, but also French and foreign gold coins. Contact one of our agencies or seek advice from one of our experts via our e-commerce site.