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The value of a single gold bar has reached $1 million.
Gold has long been considered a reliable asset during economic uncertainty and a hedge against inflation, explaining its rising popularity among investors and central banks.
The catalyst behind the $1 million milestone is the climbing price of spot gold, which has recently soared to over $2,500 per troy ounce (the unit of measure for precious metals). This sets a new record high, as first reported by Bloomberg News.
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Spot gold refers to the price gold can be bought and sold immediately — "on the spot." Per the London Bullion Market Association, gold bars contain 350 to 430 ounces of pure gold. Meanwhile, investors and everyday shoppers alike have been gobbling up smaller bits at Costco, where you can buy gold in 1 oz bars.
Investors have witnessed a 20% increase in gold prices since the beginning of the year, highlighting a strong appetite for the precious metal amid expectations of an interest rate cut by the Federal Reserve.
Historically, as interest rates dip, gold's allure strengthens, offering an attractive alternative to bonds.
Additionally, central banks around the world, with China at the forefront, are amassing gold reserves in an effort to minimize dependence on the U.S. dollar.
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