Gold bullion is a bulk storage method for gold used by central banks as foreign exchange reserves or for processing into jewelry. The standard size for a gold bar is 400 troy ounces, and the minimum purity is 99.5%. Central banks hold 19% of all existing gold as bullion, and the largest gold bar on record weighs 551 pounds.
Gold bullion is a method of storing gold in bulk for foreign exchange reserve purposes or for further processing into gold jewelry, gold charms, and other ornamental uses. Bullion bars are usually a rectangular, cast, brick-like shape with some type of surface imprint indicating the purity and net weight of the gold, as well as potential ownership information. Another common name for a gold bullion is a gold bar, although bullion is a special subsection of the definition of a gold bar.
Gold bars are typically small, hand-held amounts of gold weighing an ounce or more, and are cut or stamped from rolled sheet metal. The gold bars that the national central banks hold as gold reserves are much larger. The accepted standard size for a gold bar among bullion dealers is 400 troy ounces (12.4 kg). The Roman monetary system initially established the measure of a troy ounce while using bronze bars as currency, and it is equal to one twelfth of a pound, or 480 grains (31.1 grams). Although the avoirdupois ounce is used as a standard of measurement in cases other than precious metals, it is equal to one sixteenth of a pound (28.35 grams).
Gold bars can be quite heavy, so despite the fact that they don’t appear to be very large, they measure 6 inches by 3 inches by 2 inches (36 cubic inches or 589 cubic centimeters). A gold bar weighs approximately 27 pounds (12.25 kilograms). The official name for gold bullion held by central banks is the “Good Delivery” bar, and its actual weight can vary between 350-430 troy ounces (10.9-13.4 kilograms). The minimum purity of the gold bar must be at least 99.5% gold. Good Delivery is also the official name and size designation for bullion of silver and other precious metals held as foreign exchange reserves.
It is estimated that the world’s central banks hold 19% of all existing gold as foreign exchange reserves. Nations from the United States to Burundi, more than 110 in all, have reported their gold reserves to the International Monetary Fund. All of this is stored in the form of gold bullion, although the actual amounts are not verifiable as most central banks do not allow foreign access to their reserves.
Occasionally larger than standard gold bars will be minted for various reasons. The largest gold bar on record was produced by the Mitsubishi Corporation at its Toi Gold mine in 2005. The 18-inch-long (45.72-centimeter) bar weighs 551 pounds (250 kg) and was worth 400 million yen, at that moment. In 2005, that was equivalent to approximately $3.7 million United States dollars (USD).
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