For years, gold bars have been used as an inflation- and recession-proof asset for those looking to preserve their wealth in a reliable place. That dynamic isn't poised to go anywhere anytime soon as the price of a bar of gold continues to skyrocket.
Now, for the first time ever, a standard bar of gold is worth more than $1 million, according to a new report from Bloomberg. That number is for bars weighing 400 troy ounces or more as the price of gold per troy ounce has climbed to $2,500. While the standard gold bar contains approximately 400 troy ounces of gold, they're permitted to contain anywhere between 350 and 430 troy ounces of the precious metal.
J.P. Morgan base and precious metals strategy head Gregory Shearer explained in a statement that this change is occurring "amid fraying geopolitics, increased sanctioning, and de-dollarization," leading to "an increased appetite to buy real assets including gold."
Part of this increasing price, J.P. Morgan global commodities strategy head Natasha Kaneva said, has been motivated by things like "U.S. fiscal deficit concerns, central bank reserve diversification into gold, inflationary hedging, and a fraying geopolitical landscape." This has "lifted prices to new all-time highs this year despite a stronger U.S. dollar and higher U.S. yields," she said.
If you can spare a million (or more) dollars, now is the time to invest in some gold bars and hopefully reap the benefits down the line. Or just buy one-troy-ounce bars from Costco for way less.
