How Much Is a Gold Bar Worth?

One of the questions we hear regularly, particularly from investors who are new in the gold business, is one touching on the worth of a gold bar. To answer this question comprehensively, we will explore all the factors that directly affect the value of a gold bar.

First, let’s outline what gold bars are worth today in terms of gold value. A quick disclaimer is that you wouldn’t fetch quite this high a price when it comes to selling as you need to account for the dealer’s buy/sell margin.

Gold Bar Value Table

Gold Bars Aren’t All Worth The Same

Before we begin, it is worth noting that all gold bars cannot cost the same. Even those with similar weight and size may not necessarily have the same value.

Also worth noting is that the price of gold bars keeps changing each day that markets are open in accordance with the gold spot price.

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1. The Current Spot Price Of Gold

Since the gold bar is just a piece of precious metal, it makes sense for the going price of gold to determine its value. The gold spot price tells buyers about the market’s dollar value of one troy ounce of pure gold.

Visitors to our site can always see the latest spot price for gold and silver at the top left-hand side of our web pages or on our specialised live gold price page with interactive price chart.

It is important to keep in mind that the gold spot price varies from minute to minute when the market is open, and also after hours in the Asian markets. After knowing the latest spot price of gold, you should then proceed with the following steps to know the value of a gold bar.

The price of gold bars continuously changes

2. Weight And Purity

After knowing the current price of gold, you should know more about the weight of the gold bar. Typically, manufacturers stamp purity and weight details somewhere on the gold bar – either at the back or front.

For the most part, gold bars are either .9999 or .999 pure albeit some brands may be .995 pure. If a buyer comes across a gold bar devoid of this information, it might not be real gold. Copper and bronze are common alloy metals that resemble gold in appearance.

On the other hand, gold bar weights vary dramatically from about one gram to 1 kilogram, with commercial ‘good delivery’ bars weighing in at a huge 12.5KG. So, the size clearly affects the pricing as well.

3. Gold Bar Melt Value

After knowing the current price of gold, you should know more about the weight of the gold bar. Typically, manufacturers stamp purity and weight details somewhere on the gold bar – either at the back or front.

For the most part, gold bars are either .9999 or .999 pure albeit some brands may be .995 pure. If a buyer comes across a gold bar devoid of this information, it might not be real gold. Copper and bronze are common alloy metals that resemble gold in appearance.

On the other hand, gold bar weights vary dramatically from about one gram to 1 kilogram, with commercial ‘good delivery’ bars weighing in at a huge 12.5KG. So, the size clearly affects the pricing as well.

Gold bars have a melt value

4. Premium

A premium refers to the price added to the melt value of the gold bar. Calculation of the premium depends on many factors. Often, the demand and cost of production are the main reasons a gold bar may sell high and above the spot price.

Premiums may vary depending on the gold bar’s weight, manufacturer or condition. It is usually indicated as a dollar value or percentage. Typically, the percentage premium will reduce as the gold bar’s weight increases.

5. Does Brand Impact A Bar’s Worth?

When buying gold bars, the cost can absolutely vary according to which brand bars you purchase. Brands such as Umicore tend to be priced slightly lower than Swiss brands such as Pamp, which command a ‘Swiss’ premium.

However, the importance of brand diminishes when you look to sell. Certainly, we’d pay the same for a gold bar regardless of its brand. We simply base our price on the gold price, weight and purity.

So buy the cheapest bar possible unless you especially want a Swiss brand for ego, prestige, or as a present. Its value will be the same when it comes to selling.

We sell pre-owned gold bars amongst our best sellers, to savvy investors who realise a brand shouldn’t impact a gold bar’s worth.

6. Value Of Gold Bars Vs Coins

If you’re interested in gold as an investment, then there are two main types of physical gold; Gold coins and gold bars.

As long as these forms of gold are at least 22 carats in purity, then both are exempt from VAT as they become classified as ‘investment grade’ gold. Other types of gold, like jewellery, gold dust, lower purity coins, etc, will attract VAT and so are less attractive as effective investments.

Generally speaking, your gold bar will not be worth quite the same as the equivalent weight in gold coins. The value of both tracks the various factors already discussed. However, gold dealers will likely pay you very slightly more for desirable bullion coins such as Sovereigns than an equivalent weight gold bar.

This reflects that the British coins are Capital Gains tax-free and can be sold to a number of potential buyers due to their modest size.

Certainly, larger gold bars will usually be sold back into wholesale, so premiums are slightly lower to reflect that. We’re not talking a big difference, but perhaps a percent or so, depending on the market.

How About The Worth Of Gold Bullion vs Older Coins

The bigger discrepancy will be when comparing the value of a gold bar with the equivalent weight in a more numismatic coin. If you look at the value of a Victorian gold Sovereign, for example, its worth is not only based on its gold content but also its age, scarcity and desirability. For that reason, the value of a gold bar will always be lower per gram.

The value of gold bars will never outpace the general gold price as they don’t contain a historical or collectable value. However, gold bars would have been cheaper to buy in the first place.

Gold bars are not the same value as gold coins per gram.

7. Timing

Obviously, the underlying gold price affects the value of gold bars, as covered in point one above. But other timing issues can impact the value of your gold bar.

Firstly, the general market sentiment and supply/demand dynamic can impact the value of gold bars. That’s because the premium or discount to the spot price can vary according to how busy the market is. When the gold price rises, demand for gold increases and the number of sellers reduces. In this scenario, premiums to buy gold bars can increase to reflect the robust demand and prices paid to buy back gold also increases.

The opposite is true when the gold price is in a period of downside. Fewer buyers mean that gold bars may be snapped up at slightly lower premiums (some online gold dealers may have sales on), while dealers may pay a percent less for your gold bar if you’re selling as there are more sellers.

What can I learn from this?

To maximize your gold bar’s value, buy when the market is quiet (and low) and sell when the market is on fire (even though everyone will think you’re mad!).

Secondly, the value of your gold wafer or bar can be based on either the live gold price or one of the two daily fixings. This may sound like a moot point, but it’s important to understand that on a volatile day, perhaps when important economic figures are released or interest rates increase, the price can vary greatly from morning to afternoon.

So if you’re seeking to sell your gold bar, make sure you agree if you’re basing it off the live price, the morning fix (10.30am) or the afternoon fix (3 pm), as this can greatly impact your bar’s worth.

Will Tax Affect My Gold Bar’s Worth?

While UK coins issued with a face value, such as Britannias and Sovereign coins, are Capital Gains tax free, gold bars are not. That means the value of your gold bar could be impacted by the tax.

Obviously, if you sell your gold bar below the price you paid, then CGT will not impact its worth. Similarly, if your gold bar has risen in value, but by not more than the annual CGT threshold (around £6k per annum, but falling to just £3k in 2024), then no tax is applicable, and the bullion’s value is straightforward.

However, for the larger investor, selling a considerable amount of bars at once, at a profit exceeding your annual allowance, will incur tax, reducing the overall sale value of your gold bar.

One way around this for sellers of larger quantities ofgold bars is to sell some bars before the April 5th tax year and others after the tax year.

Spreading profits over two years, and ensuring gains are below annual allowances will mean no tax.

This strengthens the argument for buying lots of medium-sized bars instead of very large bars which may incur CGT. With the UK CGT tax-free allowance halving in 2023 with a further 50% reduction in 2024, this will become less viable.

So, What’s The Best Value Gold Bar To Buy?

The price for physical gold will generally reduce as you buy more. In the case of gold bars, if you calculate the price per gram, larger bars are far better value than small gold bars.

In fact any gold bars below an ounce in weight are really not great value due to the high relative production cost. Most new small bars will be beautifully manufactured to include being encapsulated in a plastic cover, complete with certification.

In comparison, similar sizegold bullion coins,Sovereigns (7.32g of pure gold) andBritannias , can be bought at lower premiums as they’re sold loose. 100g gold bars offer decent value, with 250g and 500g being slightly better valued, and 1kg trading pretty close to the underlying spot price.

Buy Gold Bars Today – Live Pricing And Quantity Discounts

100g Gold Bars

10g Gold Bars

1kg Gold Bars

1oz Gold Bars

Best Value Gold Bars

Metalor Gold Bars

Does this mean 1 kilo bars are the best for worth?

The problems with 1kg gold bars are that many people can’t afford to invest £50k+ into gold at once and secondly, it limits flexibility. After all, if you buy a 1kilo gold bar to reduce the cost as much as possible, you can’t liquidate £10k worth of gold if you need to. You’re forced to sell the whole bar or nothing at all.

An alternative method to buy gold bullion at the best value is to approach quantity discounts in another way, depending on how much you have to spend. While 1kilo bars undoubtedly offer the best value, discounts are still available for buying a quantity of more modest-sized gold bars.

Instead of buying one 1 kg gold bar , it could provide a good compromise to buy 10 x 100g bars instead. Buying ten 100g gold bars at once will enable you to receive a discount (although not quite as cheap as 1 x 1kilo bar), but still maintain a degree of divisibility so you can sell some of your holdings if needed.

Gold Bar Worth In Future

As we stand on the cusp of the final quarter of 2023, casting our gaze towards 2024, the gold price forecasts paint a picture of cautious optimism. While some predictions are more bullish than others, a common thread weaves through them all – none foresee a significant tumble in gold’s value.

The World Bank, in its long-term gold price forecast as of April 2023, envisions the year wrapping up with gold prices at $1,900 per ounce. The current exchange rate of 1 GBP to 1.28557 USD from Xe.com translates to approximately £1,477.50 per ounce. If you’re eyeing a 1kg gold bar, this would peg its value at around £47,500 before adding the premium (usually between 3-5%).

Angel One’s analysis offers a slightly more optimistic outlook. They predict that by the next Akshay Tritiya in May 2024, the price of 24-carat gold could touch Rs 68,000 per 10 grams. This implies an average price of $1,950 per ounce, or around £1,515.50, for Q4 2023. In this scenario, a 1kg gold bar would be worth approximately £48,800 pre-premium.

Meanwhile, Long Forecast anticipates a bit of a roller coaster ride for gold prices in Q4 2023. They expect prices to fluctuate between $1,814 and $2,061 per ounce, with an average of $1,963 per ounce, or roughly £1,526.50. This would place a 1kg gold bar at about £49,200 pre-premium.

Taking a step back to look at the bigger picture, it’s clear that gold prices are expected to hold their ground in Q4 2023 and throughout 2024, despite some volatility and divergence among different sources.

The key factors steering the gold price will be the US Federal Reserve’s monetary policy, the strength of the US dollar, and the global economic recovery from the pandemic.

What is Bar – Unit of Pressure – Definition

Pressure is a measure of the force exerted per unit area on the boundaries of a substance. The standard unit for pressure in the SI system is the Newton per square meter or pascal (Pa). Mathematically:

p = F/A

• 1 MPa 10 6 N/m 2
• 1 bar 10 5 N/m 2
• 1 kPa 10 3 N/m 2

In general, pressure or the force exerted per unit area on the boundaries of a substance is caused by the collisions of the molecules of the substance with the boundaries of the system. As molecules hit the walls, they exert forces that try to push the walls outward. The forces resulting from all of these collisions cause the pressure exerted by a system on its surroundings. Pressure as an intensive variable is constant in a closed system. It really is only relevant in liquid or gaseous systems.

Bar – Unit of Pressure

The bar is a metric unit of pressure. It is not part of the International System of Units (SI). The bar is commonly used in the industry and in the meteorology, and an instrument used in meteorology to measure atmospheric pressure is called barometer.

One bar is exactly equal to 100 000 Pa, and is slightly less than the average atmospheric pressure on Earth at sea level (1 bar = 0.9869 atm). Atmospheric pressure is often given in millibars where standard sea level pressure is defined as 1013 mbar, 1.013 bar, or 101.3 (kPa).

Sometimes, “Bar(a)” and “bara” are used to indicate absolute pressures and “bar(g)” and “barg” for gauge pressures.

Absolute vs. Gauge Pressure

• Absolute Pressure. When pressure is measured relative to a perfect vacuum, it is called absolute pressure (psia). Pounds per square inch absolute (psia) is used to make it clear that the pressure is relative to a vacuum rather than the ambient atmospheric pressure. Since atmospheric pressure at sea level is around 101.3 kPa (14.7 psi), this will be added to any pressure reading made in air at sea level.
• Gauge Pressure. When pressure is measured relative to atmospheric pressure (14.7 psi), it is called gauge pressure (psig). The term gauge pressure is applied when the pressure in the system is greater than the local atmospheric pressure, p_atm. The latter pressure scale was developed because almost all pressure gauges register zero when open to the atmosphere. Gauge pressures are positive if they are above atmospheric pressure and negative if they are below atmospheric pressure.

• Atmospheric Pressure. Atmospheric pressure is the pressure in the surrounding air at – or “close” to – the surface of the earth. The atmospheric pressure varies with temperature and altitude above sea level. The Standard Atmospheric Pressure approximates to the average pressure at sea-level at the latitude 45° N. The Standard Atmospheric Pressure is defined at sea-level at 273oK (0oC) and is:
  • 101325 Pa
  • 1.01325 bar
  • 14.696 psi
  • 760 mmHg
  • 760 torr

  For example, a car tire pumped up to 2.5 atm (36.75 psig) above local atmospheric pressure (let say 1 atm or 14.7 psia locally), will have an absolute pressure of 2.5 + 1 = 3.5 atm (36.75 + 14.7 = 51.45 psia or 36.75 psig).

  On the other hand condensing steam turbines (at nuclear power plants) exhaust steam at a pressure well below atmospheric (e.g. at 0.08 bar or 8 kPa or 1.16 psia) and in a partially condensed state. In relative units it is a negative gauge pressure of about – 0.92 bar, – 92 kPa, or – 13.54 psig.

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