From Refinery to Investor: The Journey of a Gold Bullion Bar
Buying a gold bar may seem as simple as purchasing a finished product with a specified weight and purity. However, a great deal goes into producing each bar. Gold passes through several stages before it reaches dealers, vaults, financial institutions, or private investors. These stages can include mining, transportation, refining, assaying, casting, and distribution. It is good to know the background of this process, because it will help you understand the importance of a refinery's standards, purity, weight, markings and handling of physical gold. 1. From Mine to Refinery The process begins with the extraction of gold-bearing ore from a mine. The extracted material can contain gold along with other minerals and metals and cannot be processed directly into investment-grade gold bars. Gold doré refers to a semi-refined alloy of gold and other minerals that form part of the types of gold sent to a refinery. When the material reaches the refinery, it is accepted, weighed and th...