For the first time, a single gold bar is now worth $1 million. The milestone was reached on Friday, August 16, when gold prices passed $2,500 per troy ounce. A standard gold bar is 400 ounces: $1 million. Gold has shot up in value by more than 20% in 2024 alone.
Why? Gold has an inherently limited supply, so it’s famously seen as a hedge against inflation. Central banks, especially the ones in China, have been increasing their gold reserves for months, reducing their dependency on the US dollar. Add in the expectation that the Federal Reserve might lower interest rates soon, and you’ve got yourself a gold boom.
In the first half of 2024, central banks bought over 17 million ounces of gold. Regular consumers were not that far behind, as we collectively bought over 14 million ounces in the first half of 2024. Individual investors don’t usually buy such large bars directly; instead, they opt to buy shares in index funds that hold physical gold (like GLD or IAU) or smaller, more affordable gold products. A gold necklace or a tasteful gold grill studded with rubies and emeralds. That kind of thing.
Gold analysts think the wild passion for the stuff will continue for a bit since economic conditions are still a little shaky, even if things are looking up for the most part. If you’re one of the few who has been hiding some gold bars in a mattress or a hollowed-out bible, now would probably be the time to take them to a local pawn shop so they can stare in bewilderment.
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The post Gold Bars Are Worth $1 Million for the First Time appeared first on VICE.
