To determine the price of a standard 1oz gold bar, most people simply look to the spot price. This is a method that many advocate but it has its flaws. There are so many other factors that come into play when you sell bullion bars. Of course the weight of the gold price plays an important role but it isn’t the only factor that should be used to determine the overall price of the bar itself. You would also need to the gold dealers buy back pricing policy and how much under spot they pay when you sell bullion bars to them. This is why when you start thinking about cashing in your gold bars you need to do extensive research and understand how the market works.
One thing that makes it easy to sell bullion bars is that they are often manufactured under license by world renowned and reputable gold refineries. If your bars were manufactured by these reputable companies and refineries, you can be rest assured that the quality is good passing on little to no risk to the end-user.
Why invest in Gold Bars?
Gold has been a store of wealth for centuries. You can be sure that it will retain its value in the long run, so purchasing gold bullion is always a good idea. When you have gold bars in your possession, you get the sense that your wealth is literarily in your hands which is not the case with other investment assets. In turbulent economic times, stocks perform dismally, and money in the bank loses its value just sitting there. You might have witnessed how quickly world economies can plummet and how currencies could lose so much value that the value could be equivalent of toilet paper. There is always uncertainty around currencies, recently, we have watched the U.S dollar losing ground and tanking. Having gold ensures that you are protected from future catastrophes.
Some of the economic factors that have threated the strength of gold:
- Demand and supply
- Policies of Central Banks
- Change in Interest Rates
- Quantitative Easing (QE)
- Gold Reserves
- Economic and Geopolitical Crises
- Strength of the U.S Dollar
- Industrial Demand
- Central Bank Instability
Some different size gold bars:
The 400 oz. gold Bar
The most common Gold bar for banks is the 400 oz bar. It in fact weights about 398.71. The spot price of gold was $1978.60 an ounce at the beginning of September. This means that a 400 oz. bar will be worth $791,200.
The 1 kilo gold bar
You can buy 1 kilo bars which h weighs 32.1543 troy ounces. To work out how much all of that is worth take the weight and multiply by the spot price of gold as we’ve done above. This would be 32.1543×1, 1978.60 = which means that such a bar will be worth $ 63,620.50 at current spot prices.
1 gram gold bar
The price of 1 gram gold bar is $ 65.52. However, this price is known to fluctuate.
When do I sell bullion?
When the time is right after holding your gold investment for several years it will be time to sell to free up some cash. Most investors like to sell a proportion of their gold holdings when the price is up and buy it back at a later date when it drops.