The interest in buying a gold bar is not new. "Gold wins wars" is one of the most famous phrases of Tywin Lannister, the patriarch of the wealthy House of Lannister from Game of Thrones. Tywin considered that conflicts are won by those who are in a better economic situation, that is why he intoned that phrase.
Money allows you to feed towns, armies, buy mercenaries and even allies. And, of course, the leader of the fairest and most handsome clan in all of Westeros loved to pronounce it because the gold mines of Casterly Rock were the mana from which all gold bullion came and made them the richest family in the Great Houses.
It can be said that the Lannisters won the lottery because of all the metals, gold is just one of the most special because it has very particular characteristics. It's a hard material that can be used in various industrial processes, but that's not why it's so valuable: gold is expensive because it's rare and coveted. What is scarce has a lot of value, while what is abundant does not. And we humans are fascinated by its golden brilliance with which we adorn the most beautiful jewels or mint the most dazzling coins.
Gold has been highly valued throughout history and there is not much on the planet. It is speculated that there are only about 171,300 tons, according to the specialized consultancy GFMS. This amount is equivalent to a cube of 20 meters on each side. It is also difficult to counterfeit and very liquid, that is, easy to sell for cash.
That unique mixture of scarcity-desire has made it the best asset for times of uncertainty. When economic crises occur, or moments of high volatility, investors see gold bullion as a refuge value with which to protect their assets. If a civil war suddenly broke out with two factions on equal terms, would the banks that gave them loans prefer to collect them in gold or in the new currencies that each side would issue?
In times of instability, it is unknown what will happen in the future, but it is known with certainty that no matter what happens, “gold will remain gold”. This greater demand pushes prices up, so it is undoubtedly the value with which the investor can protect himself from volatility.
How much do you have to save to buy a gold bar?
An ounce of gold was around $1,850 at the beginning of December 2020. In precious metals, 'troy ounces' are used and each one is equal to 31.1 grams. A kilo is about 32.16 troy ounces.
Bullion can weigh between 350 and 430 troy ounces (10.9-14kg), according to the London Bullion Market Association. However, the most international standard is 400 troy ounces (12kg). A 12 kilo gold bar is around $720,000 at the end of 2020.
