An Inside Look on the Price of a Gold Bar
For centuries, gold has always been regarded as a sign of wealth and power. It is a much sought-after precious metal. This is because it is difficult to find large deposits of gold. The scarcity of gold resources made it such a valuable element and made the price of a gold bar so expensive. Because of its value, gold has evolved into a great form of investment.
By buying gold bars and keeping them safe, you are assured that when the value of paper money drops, your gold remains valuable. It guarantees you a more stable and secure future amidst the unpredictability of the economy nowadays, especially with the deflation and inflation of the value of money worldwide.
What you are Really Paying For
Understanding the price of gold is crucial to buying and investing wisely. The price of this precious metal that you normally see is based on the weight per ounce or troy ounce. The type of gold varies according to origin and form. They come in the form of coins and bars that are available for purchase and investment.
Aside from the weight in ounces, there are other factors that affect the price of a gold bar, namely the purity, and the spot price that changes every day. The weight of a gold bar refers to how heavy the bar is. Most manufacturers already weighed the gold bars upon production. The weight is then stamped on the bullion bar. This also serves as your reference if you wish to double check the weight of the precious metal.
Purity refers to how much gold the bar actually contains. The purest is 9999 gold bar, meaning it contains 99.99 percent of gold. In some countries, their purest gold is at 96.5 while others are 98.5 percent pure. Its purity depends on which country it was manufactured and how much alloy and gold were mixed together. Gold mixed with alloy makes it hard enough and resistant to damage like scratches and dents. Gold in its purest form is soft. Therefore, there is no manufactured that is 100 percent pure. For manufacturers to be able to shape them into coins or bars, the gold needs to be mixed with another type of metal alloys like copper.
The spot price of gold usually fluctuates throughout the day. This is why it is important to keep track of spot prices. You would be able to determine the price for buying and selling gold bars by checking this, and be able to track the growth of your investment as well. Most websites that sell gold provide the current spot price for your reference.
Most spot prices show the price per ounce. And in order to calculate the value of the gold bar you want to purchase, get the weight in ounces and multiply it with the current price of gold or the spot price. Websites that sell gold also provide their own calculator for buyers’ convenience in computing for the price of a gold bar to prevent confusion resulting from miscalculations. For more relevant information, ask any accredited dealer or check out online consumer reviews and feedbacks.