Have you ever wondered how much a million dollars weighs? In gold, it’s heavier than you might think, especially when considering the industry-standard 400-ounce bar.
As the gold market continues its impressive rally, surpassing $2,500 an ounce, the value of a 400-ounce gold bar has now exceeded $1 million. This milestone was first reached last Friday, and gold prices have continued their ascent since then.
Spot gold recently traded at $2,525.60 per ounce, marking a nearly 1% increase on the day. So far this year, gold prices have surged by more than 20%.
The 400-ounce bar, also known as the Good Delivery Bar, is the standard in the global gold market, as defined by the London Bullion Market Association (LBMA). Today, this million-dollar bar weighs approximately 12 kilograms.
These bars play a crucial role in the international marketplace, serving as the benchmark for central banks when storing official gold reserves. All physical settlements of gold trades in the London loco market utilize these 400-ounce bars.
However, the specifications of a Good Delivery Bar are not uniform. According to LBMA standards, the gold content of these bars ranges between 350 fine troy ounces (about 10.9 kilograms) and 430 fine troy ounces (about 13.4 kilograms).
While a $1 million price tag might be beyond the reach of most retail consumers, demand for the 400-ounce bar has been strong this year. The World Gold Council reports that over-the-counter gold demand has significantly contributed to rising gold prices, with an increase of over 14 million ounces, or roughly 35,000 bars, in 2024.
Additionally, central banks have purchased more than 17 million ounces of gold in the first half of the year, equating to around 42,000 bars.
Analysts predict that ongoing consumer demand and central bank purchases will continue to propel gold prices to new record highs throughout the remainder of the year.
