If you are interested in the gold and silver bullion market and want to enter this world, certain doubts may arise. Some of them may have to do with the value of these products. If you want to have an idea of how to know the prices of gold and silver bars and how these prices are set, keep reading this article in which we will talk about how much is a gold and silver bar worth?
How much is a gold bar worth?
The smallest are the 1 gram gold bars , whose presentation on the market is marketed for gifts and gifts, and those that end up being, in proportion, the most expensive. Since these bars of one gram, which are usually presented in plastic wrap, cost at least two times more than the real value of what they contain in gold .
On the other hand, there are the Good Delivery gold bars with the standard measure of 400 ounces, with which real-time purchase and sale transactions are made and the operations of the New York Comex. The gold price that is published in the media and on the charts is the result of these transactions and operations.
Gold has become a safe value to invest . That is why there are more savers who bet on gold bars, a metal that is listed on the London Stock Exchange . At the moment, an ounce of gold is at €1,071.72, and although the price may vary over time, in general , gold maintains its value .
The real price of gold results from its price on the stock market, which fluctuates according to the market and is shared in the countries of the Euro zone. It should be noted that this price refers to pure gold, 24K. However, in Spain 18K is more common.
To know the price of gold you have to take into account the carats and the weight of the piece. The weight of gold bars is measured in troy ounces which is equivalent to 31.1034768g. Taking into account the grams of gold that we have and reviewing the price at the time of the gold price, it is calculated with a rule of three what is the value of the piece according to the carats .
How much is a silver bar worth?
Like gold bars, there are silver bars of various shapes and sizes . And likewise, the larger the unit purchased, the better. Since buying a large unit means saving money, since each ounce of the ingot is cheaper.
The most expensive end of the silver bars are the minuscule units of one or five grams , as they have a price that is seven or eight times more expensive than the cost of their silver content . On the other hand, there are the thousand troy ounce Good Delivery bars . The spot price of silver is obtained from the purchase and sale transactions in the professional market of these bars. Trading such bars guarantees investors low prices and higher quality. Also, the small bars for retail investment come from these large thousand ounce bars, they are only melted down and create smaller sized pieces.
Small silver bars are expensive because they have to cover the extra cost of production , as well as the cost of distribution to the retailer. This means that the buyer ends up paying much more than the spot price of silver.
One ounce silver bars are usually cheaper than one ounce silver coins. But the difference between the purchase price and the sale price, that is, the spread , is still ten or more percent. Even on large purchases, say ten five hundred ounce bars, the spread exceeds 4%.
With silver, an additional cost must be taken into account, the sales tax . While gold bars do not have this tax in the European Union, silver bars do have VAT . This VAT is charged in the United Kingdom at 20%, being paid by the buyer and without individuals being able to claim it when selling the silver. This causes the spread to widen until it almost reaches 30% or more for those who buy small silver bars. However, due to London’s role in the global market, Good Delivery silver bars are exempt from VAT if they remain within the circuit, in accredited vaults that are operated by members of this market.
