Gold is a precious metal that has been used as a form of currency for thousands of years. 1 oz gold bar is worth around $2,000 as of 2023.
Definition of an ounce of gold
An ounce of gold is defined as 31.1035 grams. As of 2023, a 1 oz gold bar hovers around $2,000; however it is subject to dealer premiums as well as normal price fluctuations. The most accurate gold bar prices can be viewed now through the dealers you can find on this Precious Metals Blog.
Overview of gold bar value
Gold bars are a valuable commodity and are often used as a form of investment. They have retained their value during high inflationary periods and bad economic situations, during which investors and consumers typically turn to precious metals for emergency purchases. It’s for this reason that allocated gold is one of the world’s only two Tier One Riskless Assets, alongside the U.S. dollar. Investors also use gold bars and other precious metal products to diversify their holdings.
Factors Affecting Gold Bar Value
Gold bar value is affected by a variety of factors, including the current market conditions, the metal’s rarity, and the country of origin.
Gold Spot Price
Gold spot price is the raw market price of gold without any premiums. It’s standard for most dealers and mints to base their gold prices on the LBMA (London Bullion Market Association). On January 16, 2023, the spot price of 1 ounce Troy of gold is $1915 – $1917 USD.
With that being said, you will not find gold for sale at spot. All dealers and mints sell gold with some kind of premium, to cover the cost of minting and/or casting, and packaging, shipping & marketing. For 1 ounce Troy of gold, the premium can be around $100 above spot.
Gold Bar Size
Gold bar size varies depending on the country of origin, but on average, 1 oz gold bars are around 2.5 inches wide by 1.5 inches long.
Gold Bar Purity
There are 2 main ways to measure gold purity: karats, which are typically used for jewelry, and millesimal fineness, which is typically used for investment-grade precious metal products.
In millesimal fineness, “four nines” or .9999 fine means that the gold is guaranteed to be 99.99% or better in purity.
The karat (carat) measures the gold content relative to other metals. A lot of gold jewelry is alloyed with other metals due to the malleability of pure gold. Other metals, such as silver, copper and nickel, help to strengthen and harden the jewelry. 18 karats means the product is 75% gold, and 25% other metals. 24 karats means the product is pure gold, equivalent to at least “three nines” or .999 fine in millesimal fineness, which guarantees the gold is 99.9% or better in purity.
How to Calculate the Value of a Gold Bar
If you are looking to calculate the value of a gold bar, there are a few things you need to know. First, the gold bar is measured in troy ounces. One troy ounce is equal to 31.1034 grams. Second, the gold bar market is constantly changing, so the value of a gold bar can change quickly. Finally, gold bars are often sold in bulk, so the price per ounce may be lower than the price per individual bar.
Summary of Factors Affecting Gold Bar Value
Gold bar value is affected by a variety of factors, including the current market conditions, the metal’s rarity, and the country of origin. 1 oz gold bars are typically worth around $2,000 per ounce, but this can vary depending on the market conditions.