What Is A Troy Ounce
A troy ounce is a special unit of measurement reserved specifically for precious metals such as gold.
According to the U.K. Royal Mint, one troy ounce is equal to 31.1034768 grams .
The troy ounce has been the go-to weight designation for gold since at least the 10th century, making it one of the most enduring units of measurement in the West.
Bankers, traders, and jewelers in medieval Troyes, Frances famously used troy ounces to weigh out precious metals and valuable items made from them. However, historians believe that the unit may have its origins in the ancient Roman uncia, another unit of measurement that weighed precisely 31.1 grams.
How Much Is The London Good Delivery Gold Bar Worth
Is is fairly simple to calculate the price of a London Good Delivery Gold bar. Simply multiply the weight of the bar in troy ounces by the purity of the bar and multiply that by the spot price of gold. Then, add or subtract the gold bar premium.
- The gold spot price. The gold spot price is defined as the price of one troy ounce of pure gold that is available for immediate delivery.
- The weight of gold. The weight of pure gold found in a gold bar that is being purchased. A 400 oz gold bar has minimum 0.995 parts of pure gold. As such the 400 oz gold bar will weigh 398 troy ounces of pure gold.
- The gold price premium. The gold price premium is defined as a percentage adjustment that is added or deducted from the gold spot price value of the gold bar. Generally the gold premium of a gold bar is determined by the actual cost of production, logistics and making available for sale the bar, market based competitive forces and the overall value of gold that the client is seeking to invest as expected larger sums can reduce gold premiums.
What Are Gold Bar Premiums
Generally speaking, this added cost over the spot price for any bullion derives from a number of factors, including the production, storage, and overhead costs incurred by the mint/refinery in producing the coin, plus a “mark-up” indicating the selling cost and the profit for the wholesaler selling the coin to a retailer.
Some premiums are a set monetary amount over the spot price, while other premiums can be a set percentage over the spot. Set monetary premiums are most common among bullion items that are 1 oz in weight.
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Plan To Protect Your Gold Bars
Consider how and where you will store and protect your gold. Gold bars require less space than coins to store the same number of ounces, which can make them easy to keep at home. You could also store your bars in a bank safe deposit box or at a facility that specializes in gold storage and protection.
How and where you store your gold bars will partly depend on your financial goals. Do you plan on holding them as a means of protecting your savings until your children are grown, or as a means of emergency financial assistance? If its the latter, you may want to consider storing your gold close to home, as a bank or storage facility may have limited hours of operation or be located far away. In an emergency, your gold could be inaccessible. Mitigate risk by making accommodations for storing and protecting your gold bars before taking possession of them.
How Much Is A Gold Bar Worth In 2020
The value of the gold bar swaps every day, so you need to monitor the variations at every second.
It is very much evident that the gold stock and need has been hit hard, globally, owing to the COVID-19 pandemic situation.
To get to know about the actual value, several factors need to be considered such as- manufacturing, storage, handling as well as insurance cost.
This basic information will be passed on as premiums to the investors. Often, people prefer looking at the charts, but this is highly inaccurate.
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Weight And Dimensions Of One Gold Bar
Since gold is so hard to find in large quantities, many gold bars are relatively small. Gold is a common investment commodity, so many people purchase small amounts at a time. In most cases, people do not buy a standard bar of gold. Instead, they purchase bars that range in size from a paperclip to a smartphone.
A bar of gold the size of a smartphone would weigh about one kilogram or 2.2 pounds. A bar of gold this size is worth over $57,000. In comparison, a standard bar of gold with dimensions about 4 x 11 x 2 inches weighs approximately 400 troy ounces . This standard bar of gold is worth over $700,000.
Few average investors have a gold bar lying around at home. $700,000 is a lot of money to have invested in one commodity, even for a wealthy person. If someone is particularly interested in investing in gold, they are more likely to own several smaller bars rather than one standard size bar. We will return to this later in the article.
What Determines The Price Of Gold
The price ofgold is affected by a range of factors that might also impact several other sectors of the economy. Golds price is affected by ups and downs in the stock and real estate markets, market crashes, scarcity concerns, and a host of other social and economic issues.
While gold is a relatively safe investment when compared to some other investment tools, its not entirely safe from the ups and downs of the market. For example, the 2008 stock market crash resulted in a dramatic rise in the gold price for about a week. Then, the price of gold fell in a similarly dramatic fashion.
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Advantages Of Buying Gold Bars
Gold Bars are produced in sizes ranging from 1 gm. to 400 oz or more, with many sizes in between. Like coins, gold bars are portable, private, and liquid, though their advantages are often less understood.
- Diversification Gold bars are ideal for high-volume gold diversification. Due to their size and simplicity, gold bars are one of the fastest ways you can build your precious metals portfolio. Acquisition can be done in as little time as it takes to process your payment and ship your order. When time is of the essence, buying gold bars can be your fastest route to large-scale gold ownership.
- Cost per Ounce If youre looking to buy physical gold at the lowest price per ounce, gold bars could be a great option. You can generally purchase more ounces of gold for less than if you bought the same amount of gold as individual coins.
- Lower Average Premium In general, premiums on gold bars tend to be lower than for gold coins of the same weight and fineness. It all comes down to production costs. Gold coins can be more expensive to produce than gold bars due to a number of factors. These include intricate design, emphasis on condition and appearance, and thus greater labor and machining costs. Plus, the price of a gold bar is primarily based on its weight. With some gold coins, like certified coins, the rarity and grade of the coin are also considered in the final price. So, with coins, the gold content isnt the only factor influencing how much the coin will cost.
Materials In A Gold Bar
Gold bars, also referred to as gold bullions, are made by refining raw gold to a specific purity and weight. A typical gold bar contains the highest degree of purity . The weight of gold bars varies in size and weight. They are commonly measured in troy ounces and the smaller sizes in grams. Following the U.S. Mint regulations, bars weigh from 350 to 430 troy. One troy ounce in gold bar weight is equivalent to 31.1034768 grams, and 1 kg of gold bar weight contains 32.1507 troy ounces.
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Does Older Gold Lose Value Over Time
Gold is gold, no matter when the item was made, and it retains its value based on the current daily rates for gold. This is why many people buy gold as an investment when prices are low and then sell it to a gold buyer when prices go up.
If you want to find out how much your gold items, jewelry, watches, or gemstones are worth, or you have further questions about how to buy and sell gold, please feel free to stop by one of GEM Pawnbrokers 26 convenient locations or contact us at 718-596-5626 today!
We monitor market prices daily and offer the highest prices paid to ensure you get the most cash for your gold items. We also offer instant cash loans, have a friendly expert, GIA- and JA-certified staff, and have been in business for over 70 years.
So Whats The Best Value Gold Bars When Buying
The price you pay for physical gold will generally reduce as you buy more. In the case of gold bars, if you calculate the price per gram, larger bars are far better value than small gold bars. Infact any gold bars below an ounce in weight are really not of great value due to the high production cost. Most new small bars will be beautifully manufactured to include being encapsulated in a plastic cover, complete with certification. In comparison, similar size gold bullion coins such as Sovereigns and Britannias, can be bought at lower premiums as theyre sold loose. 100g gold bars offer decent value, with 250g and 500g slightly better again, and 1kg trading pretty close to the underlying spot price.Watch our related video How much is a gold bar worth
So 1kilo bars are the best for worth
The problems with 1kg gold bars are that many people cant afford to invest £30k+ into gold at once and secondly, it limits flexibility. After all, if you buy a 1kilo gold bar to reduce the cost as far as possible, then you cant liquidate £10k worth of gold if you need to. Youre forced to sell the whole bar or nothing at all.
An alternative method to buy gold bullion at the best value is to approach quantity discounts in another way, depending on how much you have to spend. While 1kilo bars undoubtedly offer the best value, discounts are still available for buying a quantity of more modest-sized gold bars .
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The 2020 Us Presidential Election
Despite all the controversy surrounding President Donald Trump and the impeachment proceedings that the world is been watching for months now, hes got as good a chance as anyone else to win the 2020 election. Markets generally dont like uncertainty, and another win for Trump might be four more years of making swift, big, bold and unpredictable decisions that force other leaders around the world to react.
More uncertainly generally means a higher gold price, but only time will tell whats really going to happen for sure.
Now that investors are aware of many of the factors that influence the decision to buy and sell gold, perhaps its time to take the plunge. Consider what provider is best for your needs, whether youre investing for the short term or the long-term and whether you can stomach all of the craziness going on in todays world.
If you cant, a long-term bet on gold might be the best one you can make.
History Of Selling Gold
Long ago, gold was used as a form of everyday money to pay for goods and services. People would use gold like we use cash or our debit cards today. The main problem people had was being able to carry around all that gold whenever they wanted to make a purchase.
To help make buying goods and services easier, governments created their own paper money. To protect the value of gold, many governments backed their paper money using what was called The Gold Standard.1
This standard meant that all paper money could be exchanged for the same amount of gold. One could exchange gold for the same amount of paper money, too. For example, you could cash in $5 of paper money for $5 of pure gold.
Here in the United States, The Gold Standard was slowly phased out after the Great Depression that lasted from 1929 to 1939. During this time, people were converting their cash into gold faster than banks could handle it. People were scared and wanted to make sure their paper money did not become worthless.
Even after the U.S. government phased out The Gold Standard, gold did not lose its value. Instead, gold was viewed as a way for people to make an investment and have something of value should another major depression ever occur again.
More recently, the Great Recession of 2007-2009 lasted for several years and caused concern about the value of paper money. People that had gold knew they could sell it, as gold had retained its value, even though the economy had collapsed.
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How Gold Bar Providers Influence Price
John Matthey is one of those providers. Like Credit Suisse, John Mattheys gold comes in .9999 fineness but instead of providing bars, the organization produces ingots. Whats good about this is it reduces the cost of producing the gold to investors. The company just prints a serial number on it, casts the gold in a unique design and sells it to the investor. No need to take the extra step of turning it into a bar.Perth Mint gold bars might be perfect for the investor who wants to buy varying amounts of gold. The organization sells gold in a quantity as small as half an ounce for those that want full gold bars, but those gold bars also come in much smaller quantities including 5, 10 and 20 grams. Perth Mint are packaged in a tamperproof display and the bars have a hopping kangaroo printed on them.
Another great option for investors who want smaller quantities of gold would be the Valcambi Gold CambiBar. They offer a 50 gram gold bar that can be split up into 50 equal pieces. The entire 50 gram bar is the size of a credit card and could fit into a wallet.
How do these providers influence price? At the end of the day they can only charge with the market demands but the fact that they offered different quantities allows investors to get into gold without spending a fortune.
How Is Gold Valued
The price per ounce of gold, like those above, or that you might see advertised by places where you can buy and sell gold, are normally for pure gold. Pure gold is the same as 24-karat gold. Gold that is not pure is rated based on the number of parts of pure gold it contains.
The easiest way to think about this is to look at 24K gold as a big pie that has been cut into 24 equal pieces. If you take two pieces away, you are left with 22K gold. If you take 6 pieces away, you are left with 18K gold.
Gold is valued based on its purity. So, if you have an 18K gold coin, it means there are only 18 pieces of pure gold, or it is 75 percent pure gold. If the current value of pure gold was $1,300 per ounce, then your 18K gold coin would only be worth 75 percent of $1,300 per ounce, which is $975 per ounce. If your gold coin contained two ounces of pure gold, then it would be valued at $1,950.
Basically, honest places that buy and sell gold will value your gold using a similar method. They will determine the amount of pure gold in the item. Then they will multiply the percentage of pure gold by the current daily rate of gold to determine its value and how much they will pay you for it.
- Please keep in mind, the dollar amounts used here are just to help give you an idea of how gold is valued and do not reflect the current daily rates or how much you could get for your gold items today.
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How Coronavirus Affects Gold Price
The gold price has been steadily increasing in the wake of the coronavirus that infected residents in Wuhan, China and has since spread to affect tens of thousands of people across the world. Around 2% of those infected have died and that is certainly causing concern for those living in fear of a potential pandemic.
That being said the majority of cases appear to be under control and most Gold investing experts expect the price of the commodity to drop as coronavirus fears calmed down and investors get back to point money into the market.
For those that managed to capitalize off the price of gold during this time, now might be the time to cash out from a short-term investment. For the long term with the U.S. presidential election coming up later this year, it might be a good idea to hold onto some gold.
What Is A Loco Swap
Loco is short for location. In stock trading and other digital investments, location is usually not a factor. When trading precious metals like gold, however, location is essential because of the transportation costs of moving the physical assets.
A loco swap is a way to transport gold or silver to another location without physically shipping it. In a loco swap, two parties must agree to exchange gold they have in different areas with each other. Under this arrangement, the loco discount or premium is transferred between both parties in addition to the metal price.
Loco swaps enable you to trade at discount or premium to London irrespective of your location, but rather depending on the local demand and supply at the time. Because gold trades at varying prices in different locations due to demand and supply, the loco discount or premium is often small. The small amount often involved gives investors a false impression of a single global spot price.
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