Value of a gold bar reaches $1 million for the first time
A bar of gold is worth a million dollars today.
Fox – LA
The price of gold hit an all-time high this week, pushing the price of a standard gold bar above $1 million for the first time.
A typical gold bar as we know it weighs 400 troy ounces or 27.5 pounds, according to the US Gold Bureau. As of Friday afternoon, a bar of this size is selling for just over $1.3 million, with 1 ounce worth over $2,500.
The record highs reported this week reflect a price that has skyrocketed in recent years and even within months. From the beginning of the year to August 22, 2024, the price of gold rose from $2,066.32 per troy ounce to $2,500.72, an increase of 21.02%. At the close of trading on Tuesday, the spot price of gold was $2,514, the highest price record in history.
Even grocery wholesaler Costco joined the modern gold rush in late 2023, starting to sell 1-ounce gold bars and later other precious metals and coins.
Here you can find out everything you need to know about the record prices.
Costco sells a lot of gold: Should you buy? How this gold rush is affecting the market
How much is the price of gold?
The price of spot gold is currently $2,515.83 as of early Friday afternoon.
The unit of measurement generally used in this evaluation is the troy ounce, a unit of precious metals that is heavier than a standard ounce, according to the American Precious Metals Exchange (APMEX). A troy ounce is equal to 1.097 “standard” ounces, or 31.10 grams.
The unit of measurement was first used in the Middle Ages and originates from Troyes, France.
The term “spot gold” refers to the current market price at which gold can be bought and sold for immediate delivery, also according to APMEX. It represents the market value of gold at that moment, as opposed to a future or long-term value.
Gold prices: Track the gold price of the past year with Blueprint
Why is the price of gold rising and how is this measured?
According to investment website Investopedia, the price of gold is influenced by a number of market factors, including supply and demand, interest rates, market volatility and potential risk to investors.
The precious metal’s value has increased over the past five years, starting from a spot price of around $1,200 per ounce in 2019.
While research has shown that gold does not appear to be directly correlated with inflation in any meaningful way, Jonathan Rose, co-founder of Genesis Gold Group, told CNBC that people are likely buying more gold to gain some sense of stability in an economy marked by inflation, a difficult housing market and growing distrust of banks and other financial institutions.
Rose also told the outlet, “The outlook for stability in the market is not good and people want a (tangible) asset that offers them a safe haven. And that’s exactly what gold and silver offer.”
Owning a genuine piece is attractive to people who want to build a sense of independence that they believe will endure even in turbulent cash markets.
Is your gold bar from Costco worth $1 million?
Grocery wholesaler Costco made headlines when it began selling gold bars in October 2023, resulting in over $100 million in sales of the precious metal in the first fiscal quarter of 2024.
Costco’s gold bars weigh one troy ounce, a far cry from the 400 troy ounce bars currently valued at $1 million.
As of early Friday afternoon, an ounce of gold was worth $2,515.83. If you happen to have about 400 of these Costco bars on hand, you could have a stash that could sell for around $1,006,332.
However, since the retailer has a purchase limit of two bars per customer, it is unlikely that this investment will make you the next real millionaire.
