All About Gold Bars
400 ounce gold bar
This is an article all about gold bars and contains some detailed information about gold bars, the various types there are and who manufactures them.
What is a Gold Bar
All gold is measured in troy ounces and the purity is measured in karats (not to be confused with the weight measurement of carats for diamonds), and comes in a variety of forms sizes and weights. The definition of a gold bar is considered to be:
“A bar of gold made by a recognized bar manufacturer regardless of shape and size and upon which is reported the exact weight and purity of the gold as well as a registration number.”
The larger bars are called ingots and are made by casting. That is poring molten gold into moulds. The smaller bars are made by pressing gold strips with a huge multi tonne stamp much in the same way gold coins are made. These are usually called biscuits, although not so crunchy. All bars of gold, regardless of size, should have stamped on them, the weight, the size and the manufacturers stamp. Also a registration number that corresponds with a certificate, which should also accompany every bar.
The advantage of smaller bars is of course the convenience. Gold is heavy and toting around 400 ounce bars is not for everyone. A couple of ounces of gold can be carried around in a pocket however. Smaller bars are easier to buy and sell due to the lower cost involved they are easier to store and transport. The disadvantage is the price. They carry a higher premium over the value of the gold due to the costs involved in manufacture.
The advantage of buying larger bars or ingots is that the premium is considerably lower per ounce and usually a fraction above the spot price of gold for the day of the sale. The disadvantages of course are the shipping and storing considerations. They are much more difficult to move around and store due to their weight. It is also harder to sell a larger bar or ingot than a smaller one due to the shipping, security and costs involved. In fact most of the larger ingots are stored in bank vaults around the world and the ownership is simply transferred by paper. The gold itself is rarely moved.
Types of Gold Bars
In 2008, the Bank of England Museum hosted the International Gold Bars Collection. Here all the various types of gold bars were displayed. There were literally hundreds of these from the basic 400 ounce bars to donuts and double pendants to fillets of wafer thin gold bars. Many of the most common bars which, with a little searching, you can find are described here.
400 ounce or 12.5 kg Gold Bar
There are about 55 active manufacturers worldwide whose 400 ounce or 12.5 kg gold bars are known and accepted internationally as London Good Delivery. All 400 ounce London Good Delivery gold bars weigh between 350 ounces and 430 ounces with a minimum gold purity of 99.5%. About 150,000 are made each year
Kilogold Bars
The Kilogold bar (1000 grams) is popular among investors and fabricators being traded at a low premium above the spot price of gold and is probably the world’s most widely traded small gold bar.
Most Kilogold bars have a flat international shape, but many investors and fabricators in Europe prefer traditional Kilogold bars in the shape of a brick.
‘Tezabi’ Gold Bars
These roughcast gold bars are manufactured in Pakistan by the thousand in small backyard gold bar manufacturers. They are to a theoretical 99.9% purity. The gold bars are not manufactured to any specific weight but are usually around 99.9% pure. The size can depend on the amount of gold available to the manufacturer as they are usually made from old gold or melted down gold jewelery.
You often find that the Tezabi will resemble some of the earliest known gold coins made by the Lydian kings of Asia Minor in the 7th century BC. The method used by Pakistanis in the manufacture of Tezabi gold bars is not believed to have changed in over 2,000 years. The Exhibition displays Tezabi gold bars manufactured by Saleh Mohammed in Pakistan.
Tael Gold Bars
A tael is more widely known as a Chinese unit of weight. One tael is equivalent to 1.2 ounces or 37.4 grams. Tael gold bars, which are cast not pressed, ranging from 1 tael to 10 taels, and are widely traded in Chinese-speaking countries, such as Hong Kong and Taiwan.
Cast tael gold bars are manufactured in 3 shapes: ‘biscuits’, ‘doughnuts’ and ‘boats’ The ‘boat’ shape is known to have been used for silver and other Chinese coinage as far back as the Han dynasty (206 BC – 220 AD) so it is not unexpected that gold ‘boats’ should be made also.
The most popular is the 5 Tael ‘biscuit’ cast gold bar, 6 onces or 187 grams. these gold bars, manufactured in Hong Kong by the Chinese Gold & Silver Exchange (founded in 1910), are traded in large quantities. Minted tael gold bars, normally made outside Hong Kong, are also available.
Lastly, the Tael gold bars, known as ‘donuts’, are available in smaller sizes with a hole in the center. This makes it easy for the donut gold bars to be securely stacked or bound together with string.
Baht Gold Bars
The baht is the unit of weight in Thailand. The most popular gold bar here is the 10 baht gold bar. This is usually 4.9 ounces or 150.4 grams and is 96.5 percent pure gold.
Tola Gold Bars
The tola is the Indian unit of weight. The most popular cast gold bar being the 10 tola equal to 3.75 ounces or 116.64 grams in weight. These are very popular with over two million cast each year in Europe, imported and widely traded in such places as the Middle East, India, Pakistan and Singapore.
The ten-tola bar is distinctive in that it has no serial number and is often used for smuggling. The edges are round rather than sharp and so are an ideal for smuggling, inside a smuggler’s body. Round tola gold bars very form part of ‘marriage necklaces’ weighing over 500 grams in Pakistan where they are very popular.
Chi Gold Bars
The chi is a Vietnamese unit of weight. 1 chi weighs 3.75 grams. 10 chi (or 1 cay or 1 luong) weighs 37.5 grams. Pamp (Switzerland) was the first among the accredited manufacturers to produce a range of chi denominated minted gold bars for Vietnam.
400 ounce gold bar2
Decorative Gold Bars
Prior to 1980 gold bars were rather plain. Then decorated, even hologramed gold bars began to make their appearance. The manufacture of decorative gold bars is dominated mainly by manufacturers in Switzerland, Germany and Brazil with Pamp Suisse(Switzerland) pioneering multi-coloured hologram designs to minted gold bars in the 1990s. These gold bars are distributed worldwide and are very popular in the Middle East.
‘Rainbow’ Gold Bars
Mitsubishi (Japan), traditionally with a finger in very pie, is the pioneer manufacturer of multi-coloured ‘rainbow’ gold bars. This process produces various karat gold tones resulting in an infinite variety of gold patterns. The ‘Rainbow’ gold bar purity is set at 75 percent or 19 karat gold
Fine Gold Cards
Mitsubishi also pioneered fine gold business cards in the 1980s. These gold cards are very popular in Japan to impress VIP clients. Multi-coloured printed designs are available on the very thin sheet cards available from under 200 dollars each. Gold business cars up to 1000 g are available but the most popular and common card is the one gram gold card. They are available all over Japan as well as on the net by Mitsubishi.
‘Yin-Yang’ Gold Bars
Ishifuku, in Japan, have created to unusual kidney shaped gold bars representing the harmony of opposites in the Zen philosophy.
‘Koban’ Gold Bars
Tokuriki Honten, Also in Japan, has been manufacturing the ‘Koban’ gold bars since the early 1960s. These range in weight from 5 grams up to 50 grams. These gold bars commemorate the oval shape of traditional Japanese gold coinage issued between the 16th and 19th centuries.
‘Twin-Coin’ Gold Bar
Yoo Long Kim Kee (Thailand) was the first to manufacture a decorative cast gold bar to a precise weight through injecting gold into an enclosed mould under pressure. The Exhibition displays an experimental 1 baht gold bar, described as a ‘twin-coin’ gold bar, which was manufactured in 1992.
‘Gold Leaf’ Gold Bars
Widely used by Vietnamese refugees during the Vietnam war are the “Gold Leaf” gold bars. From the 1930s right up until 1975 these ultra thin bars were manufactured all over Vietnam. Being so thin they were easily hidden in clothing, placed between the soles of shoes and rolled up into narrow tubes. The standard “Gold Leaf” gold bar weighs around 15 g.
‘Gold Fillet’ Gold Bars
‘Gold Fillet’ gold bars, manufactured from thin rolled gold strips, are produced mainly for display purposes to demonstrate the official stamps of 400 oz or 12.5 kg gold bars. They illustrate the official stamps and other markings which appear only on London Good Delivery 400 oz gold bars.
Pendant & Double Pendant Gold Bars
Degussa (Germany) is recorded as the first among accredited manufacturers to have manufactured in 1978 a minted gold bar in an unconventional (hexagonal) shape, incorporating a hole so it can be used as a pendant. This concept was expanded by Pamp Suisse in 1984, with the production of minted gold bars in a number of unusual shapes. These are still around and can sometimes be bought from gold dealers and jewellers. In 1996, Pamp (Switzerland) launched the ‘double-pendant’ gold bars in the Middle East. These are available 10 gram, 7.5 gram and 5 gram with two inner shapes: heart and circular design.
Bank Gold Bars
Some banks have issued minted gold bars, marked with their own name but manufactured by an external manufacturer. In Europe and Brazil, minted ‘bank’ gold bars are widely available
Commemorative Gold Bars
Many countries commission the manufacture of Commemorative gold bars, Most notably Degussa (Germany) and Degussa (Brazil). The Chinese have also issued commemorative gold bars of Tuan Tuan and Yuan Yuan bars commemorating important national or international events. The minting of ‘commemorative’ gold bars, incorporating the mark of the accredited manufacturer, is not yet widespread but a selection of commemorative gold bars are displayed.
Heart Gold Bars
Innovative ‘heart’ gold bars, defined as heart-shaped or incorporating a heart design, were first made by Pamp SA in 1994, the outcome of a World Gold Council initiative in Singapore. The ‘heart’ gold bars of ARY Traders (UAE), launched in 1997, have aroused much interest in UAE, Pakistan and India and the Exhibition displays ‘heart’ gold bars from both manufacturers.
Kinegold Bars™
Union Bank of Switzerland (UBS), through its subsidiary refinery, Argor-Heraeus SA, has applied a KINEGRAM™ as a security device to the reverse of its minted gold bars since December 1993. This new gold bar is called kinegold bar™. KINEGRAM™ is the trade mark of the security device developed by Landis & Gyr Communications.
Bas-Relief Gold Bar
Buan Hua Long (Thailand) marks its standard 5, 10 and 25 baht gold bars in bas-relief. This is done when the bars are cast. The marks are carved into the base of the gold bar mould and formed as soon as the molten gold is poured into the mould eliminating the need for conventional marking tools: dies, punches and hammers.
Cartoon Gold Bars
Even cartoon gold bars are available. Pamp (Switzerland) introduced designs in 1996, from Warner Bros such as Tweety and Bugs Bunny, and, later, in 1997, from Disney, Mickey Mouse and Donald Duck.
Spanish Gold Bars
SEMPSA (Spain) has manufactured a 50 gram bar in the shape of a brick’. It is possibly the only minted gold bar among accredited gold bar manufacturers worldwide to have tapered sides, closely resembling the shape of typical large 400 oz or 12.5 kg London Good Delivery gold bars.
‘Dore’ Gold Bars
Most major gold mines process their gold-bearing ore at the site of the mine, producing low purity ‘dore’ gold bars. These rough gold bars are sent to gold refineries for upgrading into tradeable gold bars of high purity (99.5% or more). ‘Dore’ gold bars are normally quite large, some weighing as much as 25 kg. They are mainly used for transporting gold and not for trade.
‘Garimpo’ Dore
‘Garimpo’ dore gold bars are made by ‘Garimpeiros’, Brazilian peasants who independently mine gold in the Amazon jungle. Brazil was the world’s major source of newly-mined gold in the 18th century and still produces around 75 tonnes each year.
Gold Manufacturers & Refiners
Here we have a list of the world gold manufacturers and refiners. They are listed by country and in alphabetical order. Sometimes a gold bar might bear more than one assay stamp. In that case the lower value stamp is the one taken.
Disclaimer: As manufacturers and refiners come and go and various countries are subject to political, economic and other upheavals from time to time, there is no guarantee that any of the following are still operational although it is expected that most are. It is suggested that one does one’s own due diligence and checks out the manufacturer or refiner of one’s choice before approaching any to buy gold.
Gold Bars
400 ounce gold bar3
You can now invest any amount in gold bars, from $25 to $2.5 million, at professional bullion market prices. Click here for a detailed explanation of the cheapest, safest, and easiest way to buy gold.
Gold bars come in many different shapes and sizes, and buying in bulk saves you money.
At the most expensive end of the gold bar price scale, one-gram “novelty” gold bars are minted for the gift market. Often coated in plastic, these tiny gold bars cost at least twice the value of their gold bullion content.
Cheapest of all, in contrast, are the 400-ounce (12.4kg) “Good Delivery” gold bars held by central banks, and traded by professional bullion dealers in London, center of the world’s 24-hour gold market.
It’s the live dealing in these 400-oz gold bars, along with the trade in Comex gold market-approved bars in New York (100 oz), that creates the spot gold price you see quoted on the internet and in your newspaper.
Types of Gold Bar
There are more than 30 types of gold bar circulating in the world’s regional gold markets today. In value terms, the most heavily traded gold bars – with the largest ready market, open 24 hours a day, five days a week – are the Good Delivery gold bars bought and sold through dealers working in London.
Fifty-five active gold refineries, all closely monitored and approved by the London Bullion Market Association, make around 150,000 of these 400-ounce gold bars each year. That’s worth some $48 billion at current prices (Dec. ’07).
In the smaller, local gold markets of India, Singapore and the Middle East, the most widely traded gold bar is the “ten tola” bar. Rarely stamped with a serial number and weighing 3.75 oz (117g) each, two million of these “TT” gold bars are cast or minted each year.
The most popular gold bar in China is the “five tael biscuit” bar (6 oz; 187g). Manufactured in Hong Kong, five-tael gold bars are approved and recognized by the Chinese Gold & Silver Exchange, now in operation for almost a century.
Outside Asia, the most popular gold bar sold to private investors for personal storage is the kilobar (1000g; 32.15 ounces). More than a million of these gold bars are manufactured each year, most often in Switzerland.
The leading gold-bar refineries also make vast quantities of one-ounce gold bars every year – and just like the kilobar, these gold bars are widely promoted as a cost-effective route to gold investment.
But these smaller gold bars, although they’re cheaper than gold coins, don’t come without significant drawbacks.
Why Buy Gold Bars?
Buying Gold bars is almost always cheaper than buying the same weight in gold coins – and the bigger each bar, the lower the cost by weight.
Depending on your local tax regime, you can reduce or completely avoid paying sales tax (VAT) by buying gold bars instead of coins, too. Your savings will also depend on the quality (or “fineness”) of the gold bars you buy.
Trading Good Delivery gold bars – guaranteed to be of 99.5% fine or above – can then cut your tax bill again in many countries, because these 100- and 400-ounce gold bars are defined as investment gold and eligible for personal retirement plans. Good Delivery gold bars reduce your costs further still by retaining main market deliverable status. Depending on your point of view the elimination of private possession and insurance arrangements is also a plus.
Smaller gold bars bought and stored at home, on the other hand – or even kept in a bank safety deposit box – present three big drawbacks.
Price: If you’re buying small gold bars, your purchase price will be 2% or even 4% above the value of the gold content you get. Expect to lose nearly as much again when you sell small gold bars back to your dealer, too.
Delivery: Most gold bar retailers will cover the cost of insurance when sending gold out to new buyers, but they’ll expect you to cover this cost when you send back your gold bars to sell them.
Security: Insuring gold bars kept at your home will push your premiums sharply higher, even if you invest in a good safe. Using your bank’s vault won’t be cheap, either – and keeping gold in your possession without insurance is not a serious option.
Specialist gold-bar storage programs – such as gold pool accounts and gold certificate schemes – offer to help cut out the hassle of taking physical possession. This can certainly help reduce the premiums you pay to buy gold and sell. But their storage fees still run up to 1.5% per year.
That’s a significant charge for owning gold bars – a passive investment that pays you no interest. There is a much cheaper route, however, into buying gold and owning it outright.
Direct Access to the Biggest Gold Bars
To retain Good Delivery status, the big 400-ounce bars of gold traded by refineries, central banks, wholesalers, bullion banks and professional dealers must remain inside secure, recognized gold bullion vaults.
Take these gold bars out of market-approved storage – even to store at your bank – and they break the chain of integrity that guarantees each bar’s gold to the next buyer.
It’s the integrity of Good Delivery gold bars that ensures maximum resale when you come to sell. But until recently, private investors couldn’t easily access this market unless they were able to buy a whole 400-oz bar. Nor could they arrange market-approved storage unless they owned five big bars or more.
At BullionVault, however, you can now buy gold in amounts as little as one gram at a time. Stored in market-approved gold bar facilities, your gold will retain its maximum resale value. Storage fees for owning a portion of these big gold bars – whether in New York, London or Zurich – run as low as 0.12% per year, with insurance included.
400 oz Gold Bar
400 ounce gold bar4
THE SOURCES
http://gold.bullionvault.com
http://goldsilver.com
http://buying-gold.goldprice.org
