For years, gold bars have been used as an inflation and recession-proof asset for those looking to keep their wealth safe and sound. As the price of a gold bar continues to skyrocket, it doesn’t look like this dynamic is going anywhere anytime soon.
A standard gold bar is now worth more than $1 million for the first time, according to a new report. Bloomberg. This number is for bars weighing 400 troy ounces or more, as the price of gold per troy ounce has climbed to $2,500. While a standard gold bar contains approximately 400 troy ounces of gold, they are allowed to contain between 350 and 430 troy ounces of precious metal.
This shift is happening amid “fracturing geopolitics, escalating sanctions and de-dollarization,” which has led to “a growing appetite to buy real assets, including gold,” Gregory Shearer, JP Morgan’s chief basic and precious metals strategist, said in a statement.
Some of that rising price action is due to “concerns about the U.S. fiscal deficit, central bank diversification into gold, hedging against inflation and a fraying geopolitical landscape,” said Natasha Kaneva, global commodity strategist at JP Morgan. “This has pushed prices to all-time highs this year, despite a stronger U.S. dollar and higher U.S. yields,” Kaneva said.
If you can spare a million dollars (or more), now is the time to invest in some gold bars and hopefully reap the rewards down the road. Or, buy one-troy-ounce bars from Costco for much less.