Gold bar
Encyclopedia
A gold bar is a quantity of refined
metallic gold
of any shape that is made by a bar producer meeting standard conditions of manufacture, labeling, and record keeping.
Larger gold bars that are produced by pouring the molten metal into molds are called ingot
s. Smaller bars may be manufactured by minting or stamping from appropriately rolled gold sheets.
The standard gold bar held as gold reserve
s by central bank
s and traded among bullion dealer is the 400-troy-ounce (12.4 kg or 438.9 ounces) Good Delivery gold bar.
The kilobar, which is to say 1000 grams in mass, is the bar that is more manageable and is used extensively for trading and investment. The premium on these bars when traded is very low over the spot value of the gold making it ideal for small transfers between banks and traders. Most kilobars are flat, although some investors, particularly in Europe, prefer the brick shape.
and minted
, based on their method of manufacturing
. Cast bars are made by pouring molten
gold into an ingot mold to shape the gold product. Minted bars are made from gold blanks that have been hand cut to the required dimensions from a flat piece of gold. Markings are almost always applied by presses.
s, often simply referred to as ounce when the reference to gold is evident. One troy ounce is equivalent to 31.1034768 grams.
The much more commonly used avoirdupois
ounce is used for measuring weights in most situation in daily life in countries using imperial measures, an avoirdupois ounce is lighter than a troy ounce; One avoirdupois ounce = 28.349523125 grams.
The standard gold bar held and traded internationally by central banks and bullion dealers is the Good Delivery bar with a 400 oz. nominal weight. However, its precise gold content is permitted to vary between 350 oz and 430 oz. The minimum purity required is 99.5% gold. These bars must be stored in recognized and secure gold bullion vaults to maintain their quality status of Good Delivery. The recorded provenance
of this bar assures integrity and maximum resale value.
Tola
is a traditional Indian measure for the weight of gold and prevalent to this day. Many international gold manufacturers supply tola bars of 999.96 purity.
. It went on display at the Toi gold mine
on July 11, 2005. It was valued in 2005 at 400 million yen (approximately $3,684,000 USD at the time), though at current 2011 gold prices it is worth approximately $15.3 million USD (value calculated is for gold weight alone @ $1,900/troy ounce, not accounting for the premium associated with being the world's largest gold bar).
Refining
Refining is the process of purification of a substance or a form. The term is usually used of a natural resource that is almost in a usable form, but which is more useful in its pure form. For instance, most types of natural petroleum will burn straight from the ground, but it will burn poorly...
metallic gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
of any shape that is made by a bar producer meeting standard conditions of manufacture, labeling, and record keeping.
Larger gold bars that are produced by pouring the molten metal into molds are called ingot
Ingot
An ingot is a material, usually metal, that is cast into a shape suitable for further processing. Non-metallic and semiconductor materials prepared in bulk form may also be referred to as ingots, particularly when cast by mold based methods.-Uses:...
s. Smaller bars may be manufactured by minting or stamping from appropriately rolled gold sheets.
The standard gold bar held as gold reserve
Gold Reserve
Gold Reserve Inc. is a gold mining company with operations and mining property in Bolivar State, Venezuela.Founded in 1956, Gold Reserve Inc. is now headquartered in Spokane, Washington. The company has about ten employees at its Washington office and about 55 in Venezuela. Of these 55,...
s by central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
s and traded among bullion dealer is the 400-troy-ounce (12.4 kg or 438.9 ounces) Good Delivery gold bar.
The kilobar, which is to say 1000 grams in mass, is the bar that is more manageable and is used extensively for trading and investment. The premium on these bars when traded is very low over the spot value of the gold making it ideal for small transfers between banks and traders. Most kilobars are flat, although some investors, particularly in Europe, prefer the brick shape.
Types
Gold bars are classified into two different types, castCasting
In metalworking, casting involves pouring liquid metal into a mold, which contains a hollow cavity of the desired shape, and then allowing it to cool and solidify. The solidified part is also known as a casting, which is ejected or broken out of the mold to complete the process...
and minted
Mint (coin)
A mint is an industrial facility which manufactures coins for currency.The history of mints correlates closely with the history of coins. One difference is that the history of the mint is usually closely tied to the political situation of an era...
, based on their method of manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
. Cast bars are made by pouring molten
Melting
Melting, or fusion, is a physical process that results in the phase change of a substance from a solid to a liquid. The internal energy of a substance is increased, typically by the application of heat or pressure, resulting in a rise of its temperature to the melting point, at which the rigid...
gold into an ingot mold to shape the gold product. Minted bars are made from gold blanks that have been hand cut to the required dimensions from a flat piece of gold. Markings are almost always applied by presses.
Standard bar weights
Gold is measured in troy ounceTroy weight
Troy weight is a system of units of mass customarily used for precious metals, gemstones, and black powder.There are 12 troy ounces per troy pound, rather than the 16 ounces per pound found in the more common avoirdupois system. The troy ounce is 480 grains, compared with the avoirdupois ounce,...
s, often simply referred to as ounce when the reference to gold is evident. One troy ounce is equivalent to 31.1034768 grams.
The much more commonly used avoirdupois
Avoirdupois
The avoirdupois system is a system of weights based on a pound of 16 ounces. It is the everyday system of weight used in the United States and is still widely used to varying degrees by many people in Canada, the United Kingdom, and some other former British colonies despite the official adoption...
ounce is used for measuring weights in most situation in daily life in countries using imperial measures, an avoirdupois ounce is lighter than a troy ounce; One avoirdupois ounce = 28.349523125 grams.
The standard gold bar held and traded internationally by central banks and bullion dealers is the Good Delivery bar with a 400 oz. nominal weight. However, its precise gold content is permitted to vary between 350 oz and 430 oz. The minimum purity required is 99.5% gold. These bars must be stored in recognized and secure gold bullion vaults to maintain their quality status of Good Delivery. The recorded provenance
Provenance
Provenance, from the French provenir, "to come from", refers to the chronology of the ownership or location of an historical object. The term was originally mostly used for works of art, but is now used in similar senses in a wide range of fields, including science and computing...
of this bar assures integrity and maximum resale value.
- One tonne = 1000 kilograms = 32,150.746 troy ounces.
- One kilogram = 1000 grams = 32.15074656 troy ounces.
- One tola = 11.6638038 grams.
- One taelTaelTael can refer to any one of several weight measures of the Far East. Most commonly, it refers to the Chinese tael, a part of the Chinese system of weights and currency....
= 50 grams.This is the official rate of taels in mainland China since the country implemented the metric systemMetric systemThe metric system is an international decimalised system of measurement. France was first to adopt a metric system, in 1799, and a metric system is now the official system of measurement, used in almost every country in the world...
. In Taiwan and Hong Kong a tael is equivalent to 37.429g. - TT (Ten Tola) = 117 grams (3.75 oz)
Tola
Tola
Tola was one of the Judges of Israel whose career is documented in Judges 10:1-2. Tola, the son of Puah and the grandson of Dodo from the tribe of Issachar, judged Israel for twenty-three years after Abimelech died and lived at Shamir in Mount Ephraim, where he was also buried.Of all the Biblical...
is a traditional Indian measure for the weight of gold and prevalent to this day. Many international gold manufacturers supply tola bars of 999.96 purity.
Largest gold bar
The world's largest gold bar stands at 250 kg (551 lb), measuring 45.5 cm × 22.5 cm × 17 cm (equal to 17403.75 cm³, or 17.9 in x 8.9 in x 6.7 in≈1062.04 in³). It was manufactured by the Mitsubishi Materials Corporation, a subsidiary of MitsubishiMitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...
. It went on display at the Toi gold mine
Toi gold mine
-Galleries:The galleries of the mine total about 100 kilometers in length, over a surface of 37 hectares, and go as deep as 180 meters below sea level. The area visible for tourism is about 350m long, and goes about 150 meters deep into mountain rock.-Legacy:...
on July 11, 2005. It was valued in 2005 at 400 million yen (approximately $3,684,000 USD at the time), though at current 2011 gold prices it is worth approximately $15.3 million USD (value calculated is for gold weight alone @ $1,900/troy ounce, not accounting for the premium associated with being the world's largest gold bar).
See also
- Precious metalPrecious metalA precious metal is a rare, naturally occurring metallic chemical element of high economic value.Chemically, the precious metals are less reactive than most elements, have high lustre, are softer or more ductile, and have higher melting points than other metals...
- Fort Knox Bullion Depository
- Gold as an investmentGold as an investmentOf all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or harbor against economic, political, or social fiat currency crises...
- Gold coinGold coinA gold coin is a coin made mostly or entirely of gold. Gold has been used for coins practically since the invention of coinage, originally because of gold's intrinsic value...
- Millesimal finenessMillesimal finenessMillesimal fineness is a system of denoting the purity of platinum, gold and silver alloys by parts per thousand of pure metal by mass in the alloy. For example, an alloy containing 75% gold is denoted as "750". Many European countries use decimal hallmark stamps Millesimal fineness is a system of...
- Official gold reservesOfficial gold reservesA gold reserve is the gold held by a central bank or nation intended as a store of value and as a guarantee to redeem promises to pay depositors, note holders , or trading peers, or to secure a currency....
- Doré barDore barA doré bar is a semi-pure alloy of gold and silver, usually created at the site of a mine. It is then transported to a refinery for further purification.The proportions of silver and gold can vary widely...
- Bullion
- IngotIngotAn ingot is a material, usually metal, that is cast into a shape suitable for further processing. Non-metallic and semiconductor materials prepared in bulk form may also be referred to as ingots, particularly when cast by mold based methods.-Uses:...
- ChipGold