Definition of Gold Bars

Gold bars are a convenient way to store gold bullion for trade and storage. Gold bars are made in a wide variety of sizes. Individual investors buy them in sizes so small that they can fit in a hand. Governments store gold bars in sizes so large that many people find them hard to lift. Gold bars have their weight and purity written right on them. This makes it easy to identify and authenticate the bars, as well as calculate their value.

Types

There are two types of gold bars. Cast gold bars are made by pouring molten gold into a mold. The mold is made with writing inside indicating the purity and weight of the cast gold bar. Once the molten gold cools, the cast is removed. Minted gold bars are stamped out of a strip of gold blanks. They are cut to a specific size and stamped with the purity and weight. Minted gold bars are viewed as having a more finished quality than cast gold bars. This results in a slightly higher premium for minted gold bars even though the gold contained in the bars is the same.

Purity

A characteristic of gold bars is that they are very pure. How pure depends on where the gold bars are made. In the United States and much of the Western world, the standard is 99.99 percent pure gold. In Iran it is 99.50 percent pure gold. In Thailand it is 96.50 percent pure gold.

Measures

The weight of gold bars is measured in different ways in different parts of the world. The international standard is grams, but most countries use more than one system. In the United States, United Kingdom and Australia, ounces are also used. Tolas are used in the Middle East and India. Taels are used in China. Bahts are used in Thailand. A gold weight conversion chart can be found in the References section.

Cast Sizes

Cast gold bars are cast for the general public in sizes ranging from 10 g to 500 g, and a 1/2 oz. to 20 oz. Governments and banks often trade in London Good Delivery gold bars. These are 400 oz. (27.4285 lb.) and are 99.50 percent pure gold. These are far too large and valuable for most individual investors. They are worth several hundred thousand dollars each.

Minted Sizes

Minted gold bars are made in sizes ranging from 1/3 g to 500 g, and 1/10 oz. to 20 oz. They are primarily collected by individual investors seeking a financial stake in the gold market.