Precious metals like gold, platinum, and silver are highly valued for their beauty and their chemical applications. Many of us have dreamed about holding a gold bar in our hands and wondered what it feels like.
So, how much does a gold bar weigh? More importantly, does the weight of a gold bar impact its value? Read on to discover the answers to these questions.
What Are Troy Ounces?
To understand how much a gold bar weighs, you need to first understand the concept of troy ounces.
A troy ounce is the official unit of measurement for weighing all kinds of precious metals, including gold, silver, palladium, and platinum. The troy ounce gets its name from Troyes, France, where the measurement method was first used.
According to the UK Royal Mint, a troy ounce is equivalent to 31.1034768 grams. Compared to a troy ounce, a standard ounce weighs a little less, clocking in at about 28.35 grams. This standard ounce, which is sometimes called an avoirdupois ounce, can be used to weigh practically any other commodity, like sugar.
Bottom line: Gold bars are weighed in troy ounces, not standard ounces. This measurement can sometimes be abbreviated as “t ounces” or “t oz.” Because of this difference, gold bars might weigh a little more than you expect, even if you are used to accurately guessing how much something weighs when holding it in your hands.
How Are Gold Bars Produced?
To produce a gold bar, refining and mining companies first harvest gold and other metals, then make larger bars of those metals in bulk. Over time, the gold will be separated from the other metals to produce so-called doré bars.
A doré bar is actually a bar of gold and silver alloy. It’s weighed and melted to ensure the contents are homogenous and relatively pure. Doing this also ensures that the resulting gold bar doesn’t have any pockets and is high purity.
Then, the same refining company will likely take the pure silver and gold and melt those materials into their own bars. Alternatively, the company might sell the precious metal in its pure, liquid form to chemical companies and manufacturers.
Gold Bars vs. Biscuits vs. Ingots
A gold bar is a technical term for a Good Delivery bar, which is the standard gold bar used for storage in banks, credit unions, and other institutions or vaults. A gold bar is a gold bullion of about 400 troy ounces that has its purity stamped on the metal by the refining or manufacturing company that produced it.
A gold biscuit, on the other hand, is a thinner cast bar. Because these bars are so thin, they are sometimes called wafers. These can also be stored in banks or used for transactions, though it’s not as common.
In many cases, a gold ingot is a preliminary step to creating a gold bar. A company might harvest or mine gold, but until the gold pieces are stamped and tested for purity, they remain ingots instead of bars.
Put another way, all gold bars are ingots, but not all ingots are gold bars. Generally, gold biscuits or gold wafers aren’t used for trading or purchasing, although there are some exceptions. In some cases, gold biscuits are melted down to create gold bars when a specific quantity is needed. The reverse can also be true; some gold bars are melted down and separated into wafers for easier splitting/spending.
What Are Some Common Gold Bar Sizes?
Gold bars come in a variety of sizes. Generally, smaller gold bars and coins comprise two-thirds of the demand around the world, so they are the most commonly traded gold pieces.
Out of all potential gold pieces, one-ounce gold bars are the most common. Many beginning collectors or gold purchasers, for example, will start out with bars that weigh one ounce or gold coins that weigh about one ounce together.
One reason for the ounce standard is price. Gold can often cost over $1,900 per ounce, depending on where you get it and the purity of the gold piece. Larger pieces of gold can easily be out of reach for many Americans.
Liquidity also plays a role in the standard. It’s easier to sell of small pieces of gold. A small gold bar is easier to carry around and sell. In contrast, a larger gold bar will be harder to transport and sell.
Larger gold bars — like the kinds you see in banks, movies, and elsewhere throughout pop culture — are also popular for those who can afford them. The most common large gold piece for saving and purchasing is the London Good Delivery Gold Bar. This bar is the standard bar size and weight.
More importantly, a London Good Delivery Gold Bar has certifications for refiners and stamp requirements. If a gold bar doesn’t meet those standards, it might still be made of gold, but it won’t be worth as much because buyers can’t verify its value.
So, How Much Does a Standard Gold Bar Weigh?
A standard gold bar weighs 400 troy ounces. This is equal to 12.4 kilograms or 27.4 pounds. It also weighs 438.9 standard ounces.
However, many gold bars that are kept in banks are smaller. These are 100-troy-ounce gold bars, and they are easier to transport in bulk. You can also sometimes find gold kilobars, which are 1,000 grams or 32.15 troy ounces. These are appropriate for larger deposits of gold or for storing gold in specific denominations of coins.
Why Does Gold Bar Weight Matter?
Simply put, a gold bar’s weight matters because it affects its worth. After all, if you want to purchase gold, you’ll have a good initial idea of how much you’ll have to pay for it just based on its weight.
Weight also matters because it determines how many gold bars can be stored in a particular location. You might be able to store thousands of standard gold bars in a standard bank vault. However, you could only store a handful of much larger gold bars. Gold bar size can heavily impact what kinds of gold savings you can purchase and where you can store those assets.
Many Americans are now looking into saving their retirement funds and other money by putting it into gold and other precious metals. That means doing heavy research into gold bars, gold coins, silver bars, and other items made of precious metals.
Now that you know how much a gold bar weighs, you are prepared to start purchasing gold. When you work with the experts at American Hartford Gold, you’ll be able to order exactly how much gold you can afford or even transfer your 401(k) into a gold IRA for long-term retirement safety.
This way, you’ll be able to purchase gold assets with your retirement funds. Even if the economy goes through ups and downs, gold has historically remained valuable. Purchasing gold is a good way to ensure your hard-earned cash is still around when the time comes to retire.
Wrap Up
Get started expanding your collection of gold and other precious metal assets. American Hartford Gold makes it simple to browse available gold purchases.
What’s more, we make it easy for you to transfer your savings into physical assets, insulating your retirement fund against economic uncertainty. Get in touch with our representatives today to learn more.
Sources:
About Good Delivery | London Bullion Market Association
Ingot Definition | Investopedia
Troy Ounce: Definition, History, and Conversion Table | Investopedia
