Gold has fascinated humankind for thousands of years. Highly valued for its beauty, durability and scarcity, gold has been used ascurrency, in jewelry and in art since ancient times. The allure of gold continues today, with the precious metal seen as a reliable store of value and safe haven investment.
Gold is traded on global markets, with the price fluctuating according to supply and demand. Most gold trading happens on futures exchanges like the New York COMEX or via spot transactions between large banks and speculators. The gold price is typically quoted per troy ounce.
But gold also comes in other weights and measures like grams, kilograms and even a rarely used unit called the brick. So how much is a brick of gold actually worth?
What is a Brick of Gold?
A brick of gold is simply gold shaped and cast into a brick form. Bricks were historically used as a way to hold and trade large amounts of gold. In earlier times when forms of money were crude, gold in brick form served as a way for wealthy people, traders and even governments to easily transport valuable gold holdings.
The standard gold brick size became 400 troy ounces. At today’s prices, this would make a standard gold brick worth around $500,000. However, smaller gold bricks are popular with collectors and investors looking to buy physical gold. For example, many mints sell one ounce gold bricks for investors who want to own smaller increments.
Gold Brick Sizes
While 400 ounces became the standard, gold bricks have been made in many different sizes through history. Some of the most common include:
– 1 gram gold brick
– 5 gram gold brick
– 10 gram gold brick
– 1 ounce gold brick
– 5 ounce gold brick
– 1 kilogram (32.15 ounces) gold brick
– 400 ounce standard gold brick
Heavier gold bricks between 1-5 kilograms are also popular with large buyers of physical gold like central banks and wealthy investors.
The huge amount of money contained in larger gold bricks means they are rarely handled or traded directly by individuals today. Instead, they tend to be held in bank vaults and transferred between accounts electronically. Smaller sized gold bricks remain popular among collectors and ‘stackers’ who value holding real gold.
Price of Gold Bricks
To determine the value of a gold brick, there are two key pieces of information needed:
1. Weight of the brick
2. Current spot price of gold per ounce
Let’s look at some examples to see how brick valuations can be calculated:
1 Gram Gold Brick Price
With the spot gold price around $1,650 per ounce, a 1 gram gold brick would be worth about $53 dollars. Here is the calculation:
– 1 gram = 0.0321507466 troy ounces
– 0.0321507466 ounces x $1,650 per ounce gold price = $53
10 Ounce Gold Brick Price
The price computation is easy since the weight is already in ounces:
– 10 ounces gold brick
– 10 ounces x $1,650 per ounce gold price = $16,500
So a 10 ounce gold brick would currently be valued at $16,500.
400 Ounce Gold Brick Price
A good old fashioned 400 ounce standard gold brick weighs 12.4 kilograms or 27.5 pounds. With gold trading for $1,650 per ounce:
– 400 ounces x $1,650 per ounce = $660,000
Making a 400 ounce gold brick worth $660,000 at today’s market prices.
1 Kilo Gold Brick Price
One kilogram is equal to 32.15 troy ounces making this calculation simple:
– 1 kilogram brick
– 32.15 ounces x $1,650 per ounce = $53,048
So the value of a 1 kilo gold brick is around $53,000.
Gold Brick Valuations Over Time
The price of a gold brick fluctuates daily based on the changing gold spot price. Here is how the value of some sample brick sizes has changed over the past 5 years:
| Date | Gold Price/Oz | 10 Oz Gold Brick Price | 1 Kilo Gold Brick Price |
|---|---|---|---|
| November 2018 | $1,200 | $12,000 | $38,580 |
| November 2019 | $1,450 | $14,500 | $46,668 |
| November 2020 | $1,850 | $18,500 | $59,528 |
| November 2021 | $1,790 | $17,900 | $57,644 |
| November 2022 | $1,650 | $16,500 | $53,048 |
This table shows how both smaller and larger gold bricks can gain significant value over time as gold prices increase. The bright yellow metal generated excellent returns in the early 2020s as inflation hedging demand soared during the pandemic crisis.
Buying Gold Bricks
For large scale investors like central banks and governments, buying gold bricks happens through authorized dealers like JPMorgan or HSBC. Smaller kilogram sized bars are also popular with savvy private investors who want to own physical gold bars.
For retail buyers, gold bricks come in smaller, more affordable sizes. 1 ounce gold bricks can be bought from mints, refineries, coin dealers and even jewelry stores in some countries. Online precious metals dealers offer portability and convenience for today’s gold investors too.
Here are some tips for those interested in purchasing their first gold brick:
– Focus on reputable dealers with high ratings and reviews
– Verify the gold content and weight before buying
– Avoid counterfeits by only buying serialized and branded gold bars
– Consider storage issues if buying large gold bars
– Compare pricing between dealers to find the best premiums
Owning physical gold bricks remains an attractive option for many aiming to diversify their investment portfolio. And thanks to the availability of smaller gold bars, this classic asset is accessible today even for smaller buyers.
Fake Gold Bricks
Given the huge value contained in larger gold bars, criminal schemes involving fake gold bricks still persist. Scammers will try substituting gold-plated metal or even just paint bricks of lead to resemble real gold bars.
Always be wary of offers that seem too good to be true when it comes to buying gold bricks. Only deal with reputable sellers and take steps to verify authenticity of larger gold bars. Handling or trying to resell fake gold will result in huge losses.
Storing Gold Bricks
Properly storing physical gold bricks is important for security and protecting your investment. Smaller gold bars can be kept at home in a hidden safe or safety deposit box. But larger 400 ounce standard gold bricks require professional storage arrangements.
Here are some gold brick storage options to consider:
– Bank safe deposit box
– Private vault or safe
– Secured storage at a gold dealer
– Insured storage account or gold IRA
Home storage works for smaller bars but security risks are greater over time. Paying to store larger gold holdings in an insured vault provides peace of mind for investors. Whenever accessing stored bullion, be sure to re-verify the gold content before moving or liquidating your bricks.
Selling and Liquidating Gold Bricks
Selling or liquidating gold bricks is easiest for smaller bars bought from reputable dealers. Most gold dealers will repurchase gold bars they originally sold to retail buyers. Larger kilogram and 400 ounce institutional bars must be handled through authorized gold dealers.
To get the best price when selling your gold bars:
– Shop prices between multiple gold dealers
– Consider an online auction to reach more buyers
– Double check gold is authentic before any sale
– Verify correct weight to ensure accurate valuation
– Understand any fees or commissions on sales
You can also choose to liquidate smaller gold bars for physical cash. Many dealers will pay cash for gold, albeit typically at lower prices than selling through them directly.
Conclusion
From ancient times to today, gold bricks remain a popular way to hold and invest in physical gold. Standard 400 ounce gold bricks store immense value in a highly portable form. While too large for most individual investors, smaller brink sizes starting at just 1 gram provide access.
The price of gold bricks fluctuates daily based on prevailing gold spot prices. At nearly $1,650 per ounce, a 1 kilo gold bar is worth around $53,000. But even smaller bricks carry significant value. When buying and storing physical gold bricks, be sure to use reputable sources and verify authenticity.
