“PRICE OF gold bar hits $1m for the first time!” This was one of the many striking headlines last month, soon followed by “A gold bar is now worth $1m!” These headlines, although dramatic, were accurate. Last month, the spot price of gold surpassed $2,500 per ounce, making a 400 oz gold bar worth a cool $1m.
Dave Russell, CEO, GoldCore Ltd
Whenever an asset reaches a new price milestone, it naturally captures media attention, and gold is no exception. However, such headlines might lead some investors to worry that they’ve missed their chance to invest in this valuable metal.
Understanding what these $1m gold bars represent is essential. The 400 oz gold bar mentioned in these headlines is known as a London Good Delivery Bar, a type typically traded and held by central banks and major financial institutions. These bars measure about 10.7 inches by 3.7 inches and are over 2 inches deep – roughly double the size of an iPhone 14 Pro Max. They’re significantly larger than the bullion bars that individual investors commonly buy.
However, the hefty size and price of these bars shouldn’t discourage you. Fortunately, many other gold investment options are more accessible. Smaller bars, like 1kg bars (just over 32 oz) or 1oz bars, offer a more affordable entry into gold investing and are easier to store. Additionally, gold coins are popular investment options, with choices like the South African Krugerrand containing 1 oz of gold and the British Sovereign containing 0.24 oz.
Regardless of the size of the bar or coin, all gold investments have benefited from the recent price surge. The critical question for investors isn’t how much these bars or coins cost, but why the price of gold has risen.
In the short term, gold prices have increased due to uncertainty surrounding central bank interest rate decisions, particularly those of the Federal Reserve. Western investors have also returned to the market, looking to add security to their portfolios. However, the long-term rise in gold prices has been anticipated for years. This increase reflects growing global concerns about economic instability, financial pressures, and geopolitical tensions.
Gold has always been valued as a safe-haven asset and its appeal continues to grow as global uncertainties intensify. Central banks have significantly driven gold demand in recent years as they seek to protect themselves from the consequences of decades of risky monetary and fiscal policies. As conflicts escalate and financial systems face increasing strain, more individuals are turning to gold for security.
While $2,500 per ounce may seem high, especially when considering a $1m gold bar, gold investment is accessible to all. For example, many clients at GoldCore start saving in gold with as little as €100 a month. The real issue isn’t the price of gold but the declining value of money and the growing risks it faces. The question isn’t whether you’ve missed the boat on gold but rather: “Can you afford not to be in the boat?”
