About Gold Bars And Bullions
Gold and mankind have a history dating back thousands of years. Man was first attracted to gold’s lustrous yellow color and used it for jewelry. Then, as the scarcity of gold became known, the precious metal became a currency of trade. It was minted into coins to be used as currency. This worked fine until the value of the gold to make the coin became more valuable than the coin’s face value. When a society’s currency has a fluctuating value, doing daily business can become confusing.
A new way to trade gold was needed to stabilize the value of currency while recognizing the increasing value of gold.
Bullion is a way to trade gold that considers the mass of the gold instead of the face value of the coinage in which the gold is part. So unlike a gold coin whose value as money is the face value of the coin regardless of the cost of the gold in it, bullion’s value changes day-to-day depending on the market price of gold. It has no face value, only weight and purity stamped on it.
Gold bars are the most popular form of gold bullion. There are also gold bullion coins, which have the shape and design of coins, but are actually bullion. You pay a small premium over and above the value of the gold when you purchase them, though.
Gold bullion bars are the cheapest way to own actual gold. Though you also pay a premium, it is typically lower than that of bullion coins. The accepted standard for a gold bar is the London Good Delivery Bar. It contains 400 troy ounces of gold and is 99.5 percent pure. A standard-sized gold bar is slightly smaller than a building brick (7 x 3 5/8 x 1 ¾ inches) and weighs roughly 27 pounds. A gold bar is also worth around $380,000 (depending on the current market price).
While this is great for accumulating wealth in a compact way, it also keeps many investors out of the market. For this reason, small gold bars and even smaller gold bullion coins were developed to open up buying and selling gold bars to a larger marketplace.
Gold bars can either be minted or cast, which refers to how the bars are manufactured. Minted bars are hand cut from a flat piece of gold. Cast bars are made when molten gold is poured into an ingot (a mold for metal objects). ChipGold are credit-card-sized gold bars that are sealed and certified in packaging.
Gold bullion bars and bullion coins have become a popular way for investors to hedge against inflation. Since 1997, Americans have been able to buy and sell gold bars and coins in their individual retirement accounts as long as the bullion is at least 99.5 percent gold.
The first type of gold bar was most likely what is called a dore bar. When gold is mined, it needs to be stored in such a way that it can be easily transported. Mining operations would melt the gold they mined and pour the molten gold into ingots that could then be stacked and shipped to refineries. The refineries then purified the gold so that it could be used for coins and jewelry. There was no standard of purity for dore bars. Their use is to put the gold into a form that could be transported.
Gold was widely used for U.S. coins up until the election of President Franklin Roosevelt in 1932. In addition, banks and other companies held some of their wealth in bullion bars. Then in 1933, Congress made it illegal to own gold and gold coins were taken out of circulation. Ownership exceptions were made for gold jewelry and gold coins in collections, but the U.S. government now became the primary owner of gold in the country. Though some of the gold was in bar form, there were many coins. The government had these melted down and cast into gold bars as well. In 1936, the U.S. government began building the United States Bullion Depository at Fort Knox as a place to store the government’s gold bars. The first shipment of bars to the depository occurred in July 1937 and the Kentucky fort has been synonymous with a place of untold wealth since then.
The laws have changed since then and the country is now off the gold standard, which has allowed individuals and companies once again to buy and sell gold bars and coins.
Sell Gold Bars
So if you’re wondering where to sell a gold bar or how to sell a gold bar, then consider Cash4Gold. Our refinery is used to separate gold from other metals and jewelry, and form it into gold bars. We then sell gold bars to mints and jewelers at the market value. Selling gold bars is our business. We know where to sell gold bars to get a fair deal and that means if we can get more for the gold, we can pay you more for the gold in your broken jewelry.
At Cash4gold.com, we believe an educated customer is our best customer. The more you know about how we operate, the easier it is for you to compare us to other similar companies and recognize the value you get by doing business with Cash4gold.com. Not only can we give a satisfactory price for the gold in your jewelry (94 percent of our customers accept our cash offers), but we also provide you with committed customer service, 24/7 access to the materials you need to work with us, and lots of useful information to help you stay informed. You can find out more about gold bullion bars and coins on our blog, cash4gold.blogspot.com.