Gold Bar
Also: Fine Gold Bar, Investment Bar, Gold Brick
A gold bar is a standardised piece of fine gold with a defined weight and fineness, serving as a physical investment form and internationally recognised store of value.
A gold bar is the purest and most direct form of owning physical gold. Unlike gold coins, bars carry no legal tender face value and no numismatic premium — their value derives almost exclusively from the current gold price and their fine weight. For private investors, central banks, and institutional investors, the gold bar therefore represents the most cost-efficient way to hold investment gold in physical form.
Production: cast or minted
Gold bars are manufactured in two fundamental ways:
Cast bars are produced by pouring liquid fine gold into a mould and allowing it to cool slowly. The surface displays a characteristic, slightly uneven crystal structure and has a rustic appearance. Cast bars are less expensive to produce and are therefore offered mainly in larger weight classes (from 50 g upwards).
Minted bars (also: coin bars) are punched from a rolled gold strip and then imprinted by a minting press with the fineness, weight, serial number, and manufacturer's logo. The smooth, mirror-like surface and the sharply defined impressions make them visually more refined. They are more expensive to produce, which is why the premium (agio) is noticeably higher for small denominations (1 g – 10 g).
Denominations at a glance
| Weight | Typical bar type | Target group |
|---|---|---|
| 1 g – 5 g | Minted, blister | Beginners, gift |
| 10 g – 50 g | Minted or cast | Private investors |
| 100 g – 500 g | Minted or cast | Experienced investors |
| 1 kg | Mostly minted | Large investors |
| ~12.4 kg (400 oz) | Cast, Good Delivery | Central banks, wholesale |
Fineness and purity
Almost all modern investment bars are manufactured from 999.9 ‰ fine gold (also known as "Four Nines" or 24 karat). This value means that out of 1,000 parts by weight, at least 999.9 parts are pure gold — the remaining fraction consists of unavoidable trace impurities.
Fine weight = Gross weight × (Fineness ÷ 1000)
Example: 100 g bar at 999.9 ‰
→ 100 g × (999.9 ÷ 1000) = 99.99 g fine gold
You can conveniently calculate the current melt value of a bar online.
LBMA Good Delivery – the global standard
The most important international standard for large-volume gold bars is the LBMA Good Delivery certificate from the London Bullion Market Association. An approved Good Delivery bar must meet the following criteria:
- Fineness of at least 995.0 ‰
- Weight between 350 and 430 troy ounces (approx. 10.9 – 13.4 kg)
- Clear marking: serial number, manufacturer's logo, weight, fineness, year of manufacture
- Origin from a refinery accredited by the LBMA
The best-known accredited manufacturers include Heraeus, Umicore, PAMP Suisse, Valcambi, and Argor-Heraeus.
Checking authenticity
Because gold's high density makes it difficult to counterfeit without deviating from the correct weight or dimensions, the authenticity of a bar can be plausibly verified using simple methods:
- Weight check on a calibrated precision scale (typical tolerance ± 0.05 g)
- Density determination using the Archimedean principle (gold: 19.32 g/cm³; tungsten is close but has different thermal conductivity)
- Magnet test — gold is diamagnetic and is not attracted by a strong magnet
- Ultrasonic measurement or X-ray fluorescence analysis (XRF) for professional verification
Our authenticity checker helps you perform a quick plausibility check based on weight and dimensions.
Tax treatment in Germany
Gold bars with a fineness of at least 995 ‰ qualify as investment gold under § 25c UStG and are exempt from VAT on purchase. This fundamentally distinguishes gold from silver, platinum, and palladium, which are subject to VAT when purchased in Germany.
On a sale at a profit: if more than one year has elapsed between purchase and sale, the gain is income-tax-free for private individuals in Germany (§ 23 EStG, speculative holding period). For sales within one year, the gain counts as taxable income insofar as it exceeds the annual tax-free allowance. Note: this is not tax advice — for your individual situation please consult a tax adviser.
For cash purchases of precious metals, the identification obligation under the Anti-Money Laundering Law (GwG) already applies from €2,000; this threshold was significantly lowered in 2020 from the previous €10,000.
Premium and cost efficiency
The smaller the bar, the higher the percentage premium (agio) over the pure spot price. A 1-gram bar can trade with a 20–35% surcharge, while a 1-kilogram bar typically carries only 1–3%. Cost-conscious investors therefore benefit from buying the largest possible units — provided liquidity and storage allow. The current gold rate and the resulting calculations can be found in the gold calculator.
Storage
Gold bars can be stored at home (safe, ideally built into a wall or anchored), in a bank safe deposit box, or in a specialist precious metal storage facility (bonded warehouse). Each option has a different cost and risk profile. For home storage, household contents insurance with an explicit precious metals clause is recommended.
Key takeaway
Gold bars with 999.9 ‰ fineness are the purest and, in large denominations, the most cost-efficient form of physical gold investment — VAT-exempt, tax-free on disposal for private individuals in Germany after more than one year of holding, and verifiable for authenticity using well-established methods.