Kalyan Wiki
Gold Bar
What is a gold bar? A gold bar is also called gold bullion or a gold ingot. They are also known as gold biscuits. A gold bar is made of highly refined metallic gold with a high level of purity or fineness. Depending on the process of manufacture, they are classified as cast or minted. Cast bars are manufactured by pouring molten gold into bar-shaped cast iron moulds positioned on a balance to measure the exact weight. It is then cooled and marked with the refiner's seal, its weight, purity and unique serial number. They have an uneven surface and are cheaper than minted bars as they require less time and work to produce. Minted bars are machine cut into precise dimensions and weight from a flat piece of gold. Hence they have a smooth and even surface.
Purity The purity or fineness of gold is measured in Karats or parts of gold per thousand. 24 K gold bar has 999.9 parts of gold per thousand, or it is 99.9 % pure. The minimum purity required by the London Bullion Market Association (LBMA) for a gold bar (called a Good Delivery gold bar), is 995 parts per thousand or 99.5%. 22K gold is cheaper than 24 K as it contains 916 parts of gold per thousand and is used to make jewellery.
Weight Gold bars in weights varying from 1g, 2g, 5g, 10g and up to 1000g or 1 kg are available in the market. The Good Delivery gold bars held in Bank Reserves and used for trading in International Markets weigh 400 Troy ounce which is 12.4 kg or 438.9 oz. Although the premium associated with smaller sizes are relatively higher, they offer more liquidity.
Why invest in a gold bar? Gold bars have less premium as compared to gold coins, so they are cheaper. Their value is very close to the Gold spot price as there is no additional cost related to design or craftsmanship.
Things to remember Be sure to look for BIS (Bureau of Indian Standards) hallmark. Preserve the certificate of authenticity. Minted bars are usually sold in a protective casing, keep it intact to maintain the purity of gold. Buy gold bars manufactured at popular refineries to ensure a high level of purity.
