Determining how much exactly is the worth of a gold bar today is quite pretty easy. It is just a matter of doing simple mathematical calculations specifically, unit conversion and multiplication.
The formula is:
Gold Price = [Weight X Purity] X Gold Spot Price
Let’s have an example:
Let’s say that you have a 21 kg gold bar that you recovered for being a successful treasure hunter. Its purity is 0.9999 and at the current gold spot price of $1, 225.
The first step is to convert the gold’s weight unit into “troy ounces”. You can use Google for easy and effortless conversion.
1 Kilogram = 32.1507 Troy ounce
Thus, 21 Kilogram of gold bar is equal to 675.166 Troy ounce.
Now to calculate the current exact price of the gold bar, we can now directly apply the values according to the given formula above.
Gold bar price = [675.166 X 0.9999] X $1, 225 = $82, 6996
Basing from the formula alone, a “gold bar’s worth is not fixed” where it constantly changes or fluctuates. This is the main reason why you have to perform your own calculation if you are planning to buy or sell your gold bar.
With such very simple knowledge of calculating your gold bar’s worth today, it is one of the best way not to get ripped or cheated by a buyer or seller.
Aside from being able to avoid getting tricked, being aware of the current gold price allows you to make money through trading or investing. You just have to buy your gold at a low price and then sell it at the right time when the price goes high.
Determining Factors in Pricing a Gold Bar
Let’s further cover the specific details on how the price of a certain gold bar is determined by a legitimate buyer. Learning about them will let you better understand how the formula above got derived.
Current International Spot Price of Gold
There is actually an “international spot price of gold” which is one of the main basis used by legit gold buyers around the world. Spot price refers to the “latest updated” market price of gold in terms of dollar value for each one troy ounce of pure gold.
With today’s technology, access to the internet easily allows you to monitor the spot price of gold. Using your PC or laptop, there are too many websites offering free services of providing gold’s spot price presented in various forms of charts.
Observing the behavior of gold’s spot price, you will notice that the price do vary every minute as long as the market is open. It will only settle down when the market is closed.
Weight of the Gold Bar
Weight is also an important determining factor in pricing a gold bar. This means, “The heavier it is, the higher it’s worth value”.
In most cases, the weight of the gold bar is marked either on its front or back portion.
Fake gold bars used by scammers are made out from “copper and bronze”. These metals are very common unlike gold that is rare. The issue here is that, copper and bronze do really look a lot like good in appearance.
One good way to distinguish authentic gold bar from fake is by “measuring the weight”. Real gold bar is a lot heavier than fake gold bar made out of copper and bronze.
Purity of the Gold Bar
Purity refers to the concentration of gold that composes the gold bar. As a basis used for pricing, the higher the purity of the gold bar the higher will be its value.
Gold bars are commonly marked either on the top or bottom surface with 3 or 4 numbers. You will most likely see a number that starts with a decimal followed by 9. In most cases, you may encounter these numerical markings: .9999, .999 or .995.
If your gold bar has a marking of .9999 then it means that it has the highest grade of purity.
Gold bar manufacturers today strictly follow the standard of marking both the weight and purity of their gold bars. Without these two markings, the gold bar can be fake.
Added Melt Value of the Gold Bar
Today’s gold bars are produced by banks and companies. Depending on how they manufacture their gold bars, those cost are added into the “melt value” of the gold bar. This factor is referred by many on the gold buying and selling industry as “premium”.
The premium value of a gold bar is often indicated in dollar value or percentage. Surprisingly, when the weight of the gold bar increases this in turn decrease the premium value.
When is the Right Time to Buy Gold Bars?
Investors are most likely the ones who have interest in purchasing their own gold bars. But, it is vital for them to know when is the right time to buy which will allow them to reap the highest possible profit in return.
The best and perfect time to buy gold bars is when there is enough supply in the market. Professional investors can tell by studying the spot gold price action indicated on the chart. The “chart shows the history of the gold’s previous prices” reflecting its behavior which is either going up or down.
Assuming that it is the right time to buy gold bars, there is one more important thing that you need to know. It is actually a lot much better to buy physical gold bars with large sizes than the smaller ones. This is because “buying more will generally reduce the cost”.
You have to know that small sized gold bars are often “beautifully manufactured”. This includes the plastic cover and certification. So if you are going to buy several small gold bars, all the costs of the designs and other materials used are accumulated as additional costs.
When compared to buying a large size gold bar with the same weight as the small bars, you will actually pay less because of the lesser production cost.
Again, calculating your gold bar’s worth value today is quite pretty easy. Just follow the simple formula above and that’s it.
If somehow you cannot follow the given example above then you can provide the weight of your gold bar and its purity on the Comment Form below. Then, I will do the rest of the task for you.