?What is a gold bar

A gold bar is one of the most popular and widely used methods of investing in gold. This type of gold is easily bought and sold in the market due to its high purity and standard shape. In this article, we will explore the concept of gold bars, their fabrication costs, and the purity of gold bars.

What is a Gold Bar? Golden Insights on Gold Bars

A gold bar refers to a piece of gold with high purity that is produced in various standard shapes from raw gold. These bars are typically rectangular or square and come in different weights, such as 1 gram, 10 grams, 100 grams, and even more. Due to their high purity, gold bars usually contain between 99.5% and 99.999% gold and are recognized as a reliable investment tool. Investors and individuals looking to preserve the value of their assets often turn to buying gold bars.

What is the Purity of Gold Bars?

The purity of gold bars is very high. Typically, none of the gold artifacts have this level of purity. The high purity of the bar makes its surface relatively soft so that if you place your finger on it, your fingerprint will remain clearly visible. Keep in mind that there is no such thing as 100% pure gold. The molecular structure of gold requires the presence of other elements for stability to prevent degradation. The term “four nines” in the Iranian market refers to a gold bar with a purity equivalent to 99.9999%. The “four nines” indicates the number of nines present after the decimal point in the gold’s purity. In contrast to the high purity of bars, melted gold with a fineness of 18 karats has about 75% purity. Since this type of gold is obtained by melting old jewelry, it usually does not have a specified purity. Therefore, if you intend to buy melted gold instead of bars, it is advisable to visit reputable websites for buying and selling melted gold. Purchasing from reliable centers reduces the possibility of fraud and scams.

Fabrication Costs of Gold Bars

One important aspect to consider when purchasing gold bars is their fabrication costs. The fabrication cost refers to the expenses incurred for producing, transporting, insuring, and storing gold bars. These costs are typically calculated as a percentage of the price of gold and can vary depending on the manufacturer and market conditions. The fabrication cost can include expenses related to melting, molding, packaging, as well as management and distribution costs. These expenses should be taken into account when buying gold bars so that buyers can make informed investment decisions.

Marks on Gold Bars You will find marks on all gold bars. Manufacturers are required to engrave these marks on their produced bars. This prevents the creation and sale of counterfeit bars. These marks include:

• Purity of the Bar: The purity mark for gold bars is 999.

• Weight of the Bar: The exact weight marked on the bar should match what a jeweler’s scale indicates.

• Identification Code: The code on the bars is known as the tracking code. Each bar has a unique identification code. You can use the gold tracking system for this purpose.

• Logo and Name of the Manufacturer: Similar to other gold artifacts and jewelry, the logo or name of the company is engraved on the bar.

Bars or Coins? One of the challenges faced by most investors in this market is whether it is better to invest in gold bars or coins. Gold bars are not exempt from this rule, and investors choose them for investment as well. It’s beneficial to familiarize yourself with some characteristics of each option to make an informed investment decision.

• Weight and Price: In the market, coins are offered at fixed weights and prices; however, gold bars generally come in various weights, which may give you more flexibility when purchasing.

• Volatility: Coins tend to be more volatile and are often significantly influenced by domestic policies.

• Industry Role: Gold bars play a crucial role in industry; most investors and central banks buy and store gold bars.

• Premium: Gold bars generally have lower premiums compared to coins because coins have more complex designs that require additional manufacturing processes. Therefore, you may have to pay extra for coins.

• Storage: Storing gold bars is easier; one bar requires less space than an equivalent number of coins.

Where Are Gold Bars Produced?

Prominent gold bars are produced globally in countries such as Switzerland, England, Australia, and the UAE. Due to the high demand for these bars, they typically come at a higher price. Swiss gold bars are among the most renowned. In our country, gold bars are manufactured by state mints. It is worth noting that some private sectors can produce gold bars if they obtain the necessary approvals from the government.