The value of the gold bar

The gold bar keeps going up in value because the shiny yellow metal keeps getting rarer and rarer every day. Unless someone invents the alchemy machine soon, the gold bullion will be the next thing that Indiana Jones will be after. At the same time, if you have a gold bar under your name, it's a bad idea to just keep it under lock and key. 

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Since Alchemy Is a Fairy Tale, the Gold Bar Reigns Supreme


A gold bullion has its own proper storage, although it's not impossible at all to find some unscrupulous individuals still hiding their absolutely precious gold bar under their basement. Still, the best type of gold bar ownership is a high-security facility and having the investment under your name. On the other hand, people who buy gold rights without actually owning a piece of the gold pie are still more blessed than someone who has no gold shares at all.


At the end of the day, real gold owners have more money in the bank because they are literally sitting on a gold mine. But with the ever growing rarity of the precious metal, rights with the absence of actual name inscription is nevertheless, a growing practice among investment firms. The wiser investors, however, are more inclined to have their treasure trove bolt the high-security prison in order to commence the gold-melting process.


How the Junkyard Concept Works for Gold


For gold ownership is like the business of buying and selling losing companies. As a rule of thumb, the value of the parts is much greater than the whole. So it makes perfect sense to have the gold bullion melted with the intent of transforming the asset into a wide assortment of handcrafted jewellery and accessories.


From the junkyard point of view, it's easy to understand this concept. Used car parts operators know only too well that they won't reap as much profits from selling an old, decrepit and misshapen automobile. They would rather break the whole thing down and sell the car part by part. In the gold trade, the strategy of breaking down the bar to pieces and selling it into jewellery like earrings or rings--can work like a charm.


How the Sum of the Parts Become Greater than the Whole


While alchemy does not exist, the diamond business is a totally different animal since scientists have already found ways to manufacture diamonds instead of relying on the Earth. This is why relative to gold, the price of diamonds is on a downward spiral. Troy ounce remains as the standard unit of measure for the precious yellow metal. It is exactly

1.09714 standard ounces. That will make a 400 troy ounce gold bar a little more than 25 pounds. So if you know how much gold is trading for in any given day, just multiply that amount by 400.


The Closest Thing to Alchemy


The closest thing to alchemy in the gold business is turning a bar into ornaments, bling, and accessories. It's equivalent to the pot of gold concept. The secret is to de-purify your original investment by diluting the gold content.


The practice is a lot like turning milk into powder and subsequently pouring more water into the mix. Doing this can really stretch the original investment. You can literally watch your money multiply as you acquire the Midas touch.