How much is it worth? a gold bar? Where to buy? We've made a complete guide!

Since ancient times, gold has been a universal symbol of wealth and power. Today, a gold bar continues to arouse curiosity and fascination, not only for its brilliance and value, but also for what it represents in the world of investments and the global economy.

But after all, how much is a gold bar worth? How much does it weigh? Where can we buy it safely? This text seeks to answer these and other questions about this precious metal that has been one of the most coveted for centuries.

How do you know how much a gold bar is worth?

THE value of a gold bar is primarily determined by the current market price of gold, which is quoted in dollars per troy ounce (approximately 31.1 grams). The price of gold can fluctuate daily, influenced by economic, political, and market factors.

But for illustrative purposes, considering that the price of gold today, on 06/10/2024, is 390 reais, a gold bar (1kg) would be worth 390 thousand reais!

How does the gold price work on the market?

Gold prices are set on international stock exchanges such as the London Bullion Market Association (LBMA) and the New York Mercantile Exchange (NYMEX). Prices are influenced by several factors, including:

• Supply and Demand: The amount of gold available on the market and the demand for it directly impact its price. In times of economic uncertainty, demand for gold tends to increase, driving up its price.
• Global Economic Conditions: Economic crises, fluctuations in interest rates, inflation, and changes in monetary policies of major central banks can affect the value of gold.
• Geopolitical Events: Conflicts, political tensions, and unexpected events can lead investors to seek safety in gold, influencing its price.

Gold Price Conversion to Bar:

To calculate the value of a gold bar, it is necessary to convert the gold price per gram to the weight of the bar.

Is a gold bar worth more than money?

The question of whether a gold bar is worth more than cash is complex and depends on several economic and contextual factors. Let's explore some key points that help understand this comparison.

Store of Value

Gold is widely recognized as a store of value asset. This means it tends to maintain its value over time, even in adverse economic conditions. Unlike money, which can be devalued by inflation, gold generally maintains its purchasing power. During economic crises, demand for gold often increases, which can further increase its value.

Protection against Inflation

One of gold's main advantages over cash is its ability to protect against inflation. When inflation rises, the value of money decreases, as its purchasing power is reduced. Gold, on the other hand, tends to appreciate or maintain its value, providing a natural hedge against inflation.

Stability in Times of Crisis

In periods of economic uncertainty or political instability, gold is seen as a "safe haven" for investors. During such times, financial markets can be volatile, and currency values can fluctuate significantly. Gold, being a physical and limited resource, offers a sense of security and stability that fiat currency may not provide.

Liquidity

While money is highly liquid and can be easily used for everyday transactions, gold also has a considerable degree of liquidity. Gold bars can be sold in specialized markets, pawn shops, and even banks, often at prices close to market value. However, converting gold into cash may involve additional steps and potential transaction costs.

But there are also disadvantages

Despite its advantages, gold also has some disadvantages compared to cash. It doesn't generate income on its own, unlike investments that can offer interest or dividends. Furthermore, storing physical gold involves security and insurance costs.

Is it worth buying gold bars?

Buying gold bars can be an excellent investment and value preservation strategy, but it's important to consider the pros and cons before making a decision.

Advantages:

• Store of Value: Gold is a proven store of value, protecting against inflation and currency devaluation.
• Security: In times of economic crisis or political uncertainty, gold is seen as a “safe haven” for investors.
• Liquidity: Gold bars can be easily sold in specialized markets, banks and brokerages.

Disadvantages:

• Storage: Keeping gold bars safe can be expensive and complicated, requiring vaults or secure storage services.
• Does not generate income: Unlike stocks or real estate, gold does not generate passive income like interest or dividends.
• Transaction Cost: Buying and selling gold may involve additional costs, such as brokerage fees and taxes.

Buying gold bars is worthwhile if you're looking for a safe investment and protection against inflation. However, it's important to balance it with other types of investments to ensure diversification and growth potential. Assess your financial goals and consider consulting a specialist before investing.