Gold Bars Now Worth $1 Million
Gold bars come in many dimensions and weights, but the standard gold bar that central banks and sovereign wealth funds own is currently worth over $ 1 million, a function of its weight, 400 troy ounces, multiplied by the gold price at a new record of more than $2,500 an ounce.
To be sure, these are not the gold bars that individual investors typically purchase—one ounce bars are far more affordable and portable. But the vaults of the Bank of England, Fort Knox, and the Federal Reserve Bank of New York—some of the most important secure vaults on the globe—are stacked with 400 troy ounce gold bars, each weighing nearly 27-1/2 pounds, that are bought and sold by central banks and professional bullion dealers, bars that for the first time are valued at better than $1 million.
Even among these “professional-sized” bars there is variability. The London Bullion Metals Association (LBMA) Good Delivery Rules sets the acceptable standards for physical settlement of gold transactions. LBMA guidelines call for a minimum gold content of 350 troy ounces and a maximum of 430 troy ounces, with weights rounded to the nearest 25/100th of a troy ounce. (A troy ounce is slightly heavier than a standard ounce, weighing in at 1.097 ounces.)
During the first half of the year, central banks purchased 483.3 metric tons of gold, or nearly 39,000 gold bars, a major factor that has pushed the price of the precious metal above $2,500 an ounce.Real Time Precious Metals Data Below
