1 Kilo Gold Bar
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1 Kilo Gold Bar
Serial numbers were photoshopped out in this photo.
Weighing 32.15 Troy Ounces, the 1 kilo gold bar is a popular option for bullion investors. The bars are easier to store and take up less space than the smaller 1 oz and 10 oz bars that used to be the most readily available options for individual purchases. 1 kilo gold bars, also known sometimes simply as "kilobars" are produced by major gold bullion manufacturers of the world and typically branded either with the stamp of the manufacturer, or that of a bank. Well known kilobar "brands" include UBS (Union Bank of Switzerland), Heraeus, PAMP Suisse, Johnson Matthey and several others.
As with other gold bullion bars, 1 kilo gold bars are typically manufactured at 24 karat, also known as 999.9 fine (at least 99.99% pure gold). This figure is marked on the bar along with the weight, assayers mark, manufacturer's stamp and (typically) a serial number.
Buying 1 Kilo Gold Bars
One of the advantages of larger gold bars such as the 1-kilo is that they carry a lower premium over spot than smaller bars. However, you have to be something of a serious investor to get your foot in the door: At early 2012 prices of around $1725 per Troy ounce, just one of these bars would set you back $55,459 plus the bullion dealer's premium, which may well be around another $1000 (or possibly even more than $2000 if purchasing with a credit card, for which bullion traders very often place an extra fee).
1 kilo gold bars are widely available online and by phone - and once you have done the hard part, which is obtaining sufficient capital, ordering would appear to be a relatively simple process. It is suggested to buy from one of the established bullion traders as they have a long reputation of service. Curiously, a quick search on Ebay shows that gold plated copper replicas weighing 8 ounces can be obtained for $40 - however with ebay's recent move to ban the sale of replicas of rare coins, it is possible that these too may be prohibited in future despite being clearly stated as replicas. It is unlikely that you would see a genuine gold bar for sale at less than the current spot price.
Selling 1 Kilo Gold Bars
1 kilo gold bars are considered a highly liquid commodity. This means that they are traded readily and can be converted into their cash equivalent through reputable bullion dealers.
If you are selling 1 kilo gold bars, you will not realise the "spot price" but will receive a quote for a "buy back price" from a bullion dealer. For this type of gold bar, the buy back price may be perhaps $500 less than the equivalent spot price.
So with the differences between buy and sell prices, you will need for the price of gold to have risen a certain amount before you "make your money back." Let's say for example you bought one of these bars when the spot price was $1700 / ozt. You would need to sell when the price was $1746 / ozt in order for a dealer premium of $1000 and a buyback deduction of $500 to be covered.
1 Kilo Gold Bar Dimensions
1 kilo gold bars, like other gold bars, are surprising in how small they are for their weight: They are typically 8cm long, 4 cm wide and 1.8 cm deep - around the size of a small cell phone.
1 kilo of gold is 32.150746568627981 Troy Ounces and the spot price of one ounce of fine gold should be multiplied by this number in order to calculate the current value of the kilobar.
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