How many ounces does a bar of gold have?

Quick Answer

A standard gold bar contains approximately 400 ounces of gold. However, gold bars come in many different sizes and can range anywhere from 1 ounce to over 400 ounces. The most common gold bar size traded on financial markets is the 400 ounce bar, also known as a “good delivery bar.”

How Much Does a Gold Bar Weigh?

Gold bars are measured in troy ounces. One troy ounce is equal to approximately 1.1 avoirdupois ounces. The troy ounce measurement originated in the Middle Ages in the city of Troyes, France. It was adopted as the standard unit of measurement for precious metals such as gold and silver.

There are several different common sizes for gold bars:

Gold Bar Size Weight in Troy Ounces
1 troy ounce 1 troy ounce
5 troy ounces 5 troy ounces
10 troy ounces 10 troy ounces
1 kilogram (kg) 32.15 troy ounces
400 troy ounces 400 troy ounces
12.4 kilograms (kg) 400 troy ounces

As you can see, the standard gold bar size traded internationally is the 400 troy ounce bar. However, smaller gold bars in increments of 1 ounce, 5 ounces, 10 ounces, and 1 kilogram (32.15 ounces) are also commonly traded.

The 400 ounce gold bar is the industry standard because it is a manageable size and weight for storage and transportation purposes. A bar of this size also represents a substantial amount of value, making it convenient for large international transactions between central banks and major financial institutions.

Why 400 Ounces?

The 400 ounce gold bar became the industry standard during the late 1960s and early 1970s when the major gold trading markets were established in London and Zurich.

Prior to this time, gold trading was not nearly as organized or centralized. Gold was traded in a wider variety of bar sizes that varied from country to country. Some of the common bar sizes at that time included:

– 250 ounces (around 7.8 kg)
– 295 ounces (9.2 kg)
– 320 ounces (10 kg)
– 400 ounces (12.4 kg)
– 430 ounces (13.4 kg)
– 620 ounces (19.3 kg)

In the late 1960s, the central banks of the United States, Switzerland, West Germany, the Netherlands, Belgium, Italy and the Bank of England began working together to centralize and standardize the international gold trade. This group of central banks decided that the 400 ounce bar should become the universal standard, because it was a convenient size and weight for storage and transport.

The 400 ounce bar’s dimensions also made it easy to stack and handle efficiently. Each bar measures approximately 7 x 3 5/8 x 1 3/4 inches (17.9 x 9.2 x 4.5 cm).

By the early 1970s, the 400 ounce “good delivery bar” had become well established as the primary unit for gold trading and has retained this status ever since. Most large gold exchanges around the world, such as the London Bullion Market Association (LBMA), only accept 400 ounce bars meeting their stringent quality guidelines for trading.

Good Delivery Specifications

For a 400 ounce gold bar to be accepted for trading by the LBMA and other major exchanges, it must meet their refining standards for quality, purity and physical dimensions. Here are the key specifications required for LBMA good delivery gold bars:

– **Fineness** – The bar must have a minimum fineness of 995 parts per 1000 pure gold. In other words, it must be at least 99.5% pure gold.

– **Weight** – The acceptable weight range is between 350 and 430 troy ounces. However, most bars will weigh around 400 ounces.

– **Dimensions** – The permitted dimensions are a length between 6.7 and 8.0 inches, width of 3.6 – 4.8 inches, and height between 1.3 and 1.7 inches.

– **Marks** – The bar must be marked with its precise weight, purity, and the assayer/refiner who produced the bar.

– **Appearance** – The bar’s appearance should be free from any major imperfections on the surface. Minor surface marks from handling are acceptable.

Reputable refiners will always produce bars that meet the LBMA’s standards when selling to major financial markets or central banks. However, some shady dealers may try to sell non-standard or counterfeit bars, so buyers must beware. The LBMA estimates that counterfeit bars posing as good delivery gold are extremely rare, accounting for far less than 1% of the total gold bar market.

Most Gold Bars Are .9999 Fine

The minimum purity required for good delivery status is 99.5% or above. However, the vast majority of gold bars traded today are .9999 fine, meaning 99.99% purity. Major commercial refiners aim for these higher purity levels to meet the demands of modern gold investors and financial markets.

Producing the extra pure .9999 gold bars requires more time and effort in the refining process. But it provides buyers with maximum peace of mind that they are getting gold almost entirely devoid of other metals and impurities.

The most reputable and desired gold bar brands typically have .9999 purity, such as bars from PAMP Suisse, Credit Suisse, Valcambi, Perth Mint, Johnson Matthey and the Royal Canadian Mint.

Central Banks Hold the Most 400 Ounce Bars

Due to their huge gold reserves, central banks around the world are the biggest holders of large good delivery gold bars. The United States claims to hold the most, with over 8,100 metric tons of gold in its official reserves. Most of this is stored in the form of the standard 400 ounce bar.

The Federal Reserve Bank of New York acts as custodian for most of America’s gold, stored in a network of underground vaults beneath Manhattan. This cache represents about 75% of all the official gold reserves held by governments and central banks around the world.

Other major central bank holders of large gold bars include Germany, Italy, France, China, Russia, Switzerland, Japan and India. Private individuals or institutions would usually purchase smaller gold bars in 1 ounce to 1 kilogram sizes. The 400 ounce good delivery bars are really only practical for central banks and the largest commodity trading houses dealing in huge volumes of gold.

Could I Buy a 400 Ounce Gold Bar?

Very few individuals can afford to buy a full 400 ounce gold bar, which is worth several hundred thousand US dollars at current prices. However, it is possible to buy fractional portions of these large bars from some dealers that offer pooled accounts.

For example, Olimpia Metals based in Switzerland allows retail investors to buy as little as 100 grams of a 400 ounce bar. The company purchases and vaults the large bars, then offers account holders the option to own a certain portion. All allocated portions are fully segregated and identified by the owner’s name.

The benefits of buying a share of a larger good delivery bar include:

– Extremely low premium/markup over the spot gold price, since you are essentially sharing in the wholesale price.

– Avoiding the higher manufacturing costs of smaller bars and coins.

– Diversification by not having all your gold in one form.

– Near-perfect liquidity when you want to sell, since your portion can easily be sold back to wholesale markets.

The minimum investment at Olimpia Metals is 100 grams, currently worth around $6,000. Other platforms may allow investment starting at just a few grams or ounces of a larger bar.

Conclusion

In summary, the standard gold bar held by central banks and traded by major financial institutions contains approximately 400 troy ounces of pure gold. This has been considered the industry standard size since the late 1960s when the modern international gold market developed.

While a variety of smaller and larger bar sizes exist, the 400 ounce “good delivery bar” remains the go-to choice for large gold transactions between central banks, governments and major financial companies. Most large gold exchanges only accept delivery bars meeting strict quality specifications.

Although individual investors generally opt for smaller bars and coins, it is possible to invest in fractional portions of 400 ounce bars through pooled accounts offered by some dealers. This provides an affordable way to own part of these top-tier wholesale gold bars.

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