(Kitco News) - Have you ever wondered how much a million dollars weighs? Spoiler alert—it's heavier than you might expect, especially in the form of a gold bar.
Not only does the gold market continue to reach consecutive record highs, but its rally above $2,500 an ounce has also pushed the value of a 400-ounce bar to over $1 million. This milestone was initially reached on Friday; however, after breaching the $2,500 level, gold prices have continued to climb.
Spot gold last traded at $2,525.60 an ounce, up nearly 1% on the day. Gold prices have increased by more than 20% so far this year.
While physical gold bullion comes in various shapes and sizes, the 400oz bar is the industry standard, as set by the London Bullion Market Association. Today’s million-dollar bar weighs approximately 12 kilograms.
The 400oz bar, also known as the Good Delivery Bar, is an essential tool in the global marketplace and the standard by which central banks store their official gold reserves. All physical settlements of gold trading in the London loco market are conducted with 400oz bars.
While this is the recognized gold standard, there is some nuance within the specifications of a Good Delivery Bar. According to the standards set by the LBMA, the minimum gold content in a bar is 350 fine troy ounces (approximately 10.9kg), while the maximum is 430 fine troy ounces (approximately 13.4kg).
While $1 million might be a little steep for some retail consumers, there has been strong demand for the 400oz bar so far this year. According to the World Gold Council, over-the-counter gold demand was a significant driver of gold prices this year, increasing by more than 14 million ounces, or roughly 35,000 bars.
Meanwhile, central banks bought more than 17 million ounces of gold in the first half of this year, or roughly 42,000 bars.
Analysts expect that consumer demand and central bank purchases will continue to support gold’s drive to consecutive record highs throughout the rest of the year.
