Kilobars or 400-ounce bars?

Physically, a kilobar and a 400-ounce Good Delivery bar are the same metal. Commercially, they behave differently. The right choice depends less on the gold price than on what you expect to do with the metal later.

The 400-ounce bar

• The wholesale standard in London and the reference format for central banks and large institutions.
• The lowest premium over spot per ounce at purchase, because it is the format the wholesale market trades.
• Each bar is large — over £1 million at recent prices — so it is hard to sell part of a holding.
• Best kept within the accredited chain of custody to avoid re-assay costs when sold.

The kilobar

• Widely traded across Asia, the Middle East and Switzerland, and popular with private investors.
• Easy to divide a holding: you can sell, gift or move a single kilo.
• A slightly higher premium per ounce than larger bars, though competitive in active markets.
• Practical to move in smaller consignments, which can suit insurance limits per conveyance.

Ask yourself how you would sell 10% of your holding. The answer usually points to the right format.

Storage and transport cost

Storage is usually charged on value, so the format makes little difference there. Transport and handling are where they diverge: many small bars mean more counting and weighing at each hand-over, while large bars concentrate value in fewer pieces. Both are routine for us; the cost difference is rarely decisive.

Mixing formats

Many clients hold both: a core in 400-ounce bars for the lowest acquisition cost, and a portion in kilobars for flexibility. Your certificates and portal list each bar with its form, so the split is always visible.

Premiums and liquidity

The premium over spot is usually lowest on 400-ounce bars because they are the wholesale unit: banks and refiners trade them in volume, and the cost of making and assaying one bar is spread across a large amount of metal. Kilobars carry a slightly higher premium per ounce, but they are easier to sell in part and are actively traded in several regional markets, particularly in Asia.

Liquidity also depends on where you plan to sell. A 400-ounce bar in a London vault is about as liquid as physical gold can be. The same bar in a smaller market may be harder to place without first being cast into smaller units, which adds cost. Kilobars travel well between markets, which is one reason they are popular with owners who expect to move metal between jurisdictions.

Converting between formats

It is possible to convert large bars into kilobars, or the reverse, through a refiner. The process involves melting, casting, assaying and new certificates, so it costs a fee per ounce and takes time. Converting is rarely worthwhile for its own sake, but it can make sense ahead of a planned sale or when splitting a holding between heirs.

Recording mixed holdings

Because every bar in our records carries its own refiner, serial number, form, fineness and weight, mixed holdings are no harder to track than uniform ones. Your certificate lists each bar and shows totals for gross weight, fine weight and fine troy ounces, so you can see at a glance how a holding is made up and what proportion sits in each format.