Gold Bar
Also: Fine gold bar, Investment bar, Gold ingot
A gold bar is a standardised piece of fine gold with a defined weight and fineness that serves as a physical investment form and an internationally recognised store of value.
A gold bar is the purest and most direct way to own physical gold. Unlike gold coins, bars carry no legal-tender face value and no numismatic premium – their value derives almost entirely from the current gold price and their fine weight. For private investors, central banks and institutional investors, the gold bar is therefore regarded as the most cost-efficient way to hold physical investment gold.
Manufacture: cast or minted
Gold bars are produced in two fundamental ways:
Cast bars are made by pouring molten fine gold into a mould and allowing it to cool slowly. The surface shows a characteristic, slightly uneven crystalline structure and looks rustic. Cast bars are cheaper to produce and are therefore offered mainly in larger weight classes (from 50 g upwards).
Minted bars (also: coin bars) are stamped out of a rolled strip of gold and then embossed with fineness, weight, serial number and manufacturer logo using a coining press. The smooth, mirror-like surface and the crisp, sharp stampings make them look more premium. They are more expensive to produce, which is why the premium (agio) on small denominations (1 g – 10 g) is noticeably higher.
Denominations at a glance
| Weight | Typical bar type | Target group |
|---|---|---|
| 1 g – 5 g | Minted, blister | Beginners, gifts |
| 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 made from 999.9 ‰ fine gold (also "four nines" or 24 carat). This value means that out of 1,000 parts by weight, at least 999.9 parts are pure gold – the remainder being 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 accreditation of 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 markings: serial number, manufacturer logo, weight, fineness, year
- Origin from a refinery accepted by the LBMA
Among the best-known accredited manufacturers are Heraeus, Umicore, PAMP Suisse, Valcambi and Argor-Heraeus.
Checking authenticity
Since gold is difficult to counterfeit without missing the weight or dimensions – thanks to its high density – the authenticity of a bar can be assessed with simple methods:
- Weight check on a calibrated precision scale (typical tolerance ± 0.05 g)
- Density measurement using Archimedes' 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 testing
Our coin authenticity check helps you carry out a quick plausibility check based on weight and dimensions.
Tax treatment in the United Kingdom
Gold bars with a fineness of at least 995 ‰ qualify as investment gold and are exempt from VAT on purchase (HMRC; EU Directive 2006/112/EC as retained in UK law). This fundamentally distinguishes gold from silver, platinum and palladium, which attract 20 % VAT when bought in the UK.
On a sale at a profit, Capital Gains Tax (CGT) may apply. UK legal-tender coins from The Royal Mint (Sovereign, Britannia, Lunar, Queen's Beasts) are CGT-exempt with unlimited gains, but gold bars are subject to CGT on gains above the annual exempt amount. The gain is calculated as disposal proceeds minus acquisition cost; there is no German-style one-year speculation period in the UK. Note: This is not tax advice – for your individual situation please consult a tax adviser.
For cash purchases of precious metals, identity-verification obligations under the UK Money Laundering Regulations may apply above certain thresholds; see anti-money laundering law.
Premium and cost efficiency
The smaller the bar, the higher the percentage premium (agio) over the pure spot price. A 1 g bar can trade at a 20–35 % premium, whereas a 1 kg bar typically only carries a 1–3 % premium. Cost-conscious investors therefore benefit from buying the largest units possible – provided liquidity and storage allow. You will find the current gold rate and the resulting calculations in the gold calculator.
Storage
Gold bars can be stored at home (in a safe, ideally bricked-in or anchored), in a bank safe deposit box or in a specialised precious metals vault (bonded warehouse). Each option has a different cost and risk profile. For home storage, home contents insurance with an explicit precious metals clause is recommended.
In brief
Gold bars with 999.9 ‰ fineness are the purest and, in large denominations, most cost-efficient form of physical gold investment – VAT-exempt, subject to CGT on gains above the annual exempt amount, and verifiable for authenticity using established methods.