How much is 1 pound of gold worth? (2024)

Have you considered adding gold to your investment portfolio? This precious metal can be used as ahedge against inflation, protection against fluctuations in the stock market or in other ways to add stability to investment portfolios.

When you shop for gold, you'll find that it's usually sold by the gram or the ounce. But what about buying bullion by the pound? If you had a 1-pound gold bar lying around, how much would it be worth?

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How much is 1 pound of gold worth?

If you look at how gold is usually measured and sold, you may find that one ounce of gold isn't the same weight as one ounce of sugar. That's because gold is typically measured in troy ouncesrather than standard ounces.

One troy ounce weighs about 31.1 grams while a standard ounce weighs about 28.35 grams. Although there are 16 standard ounces in a pound, there are only 14.58 troy ounces in a pound. So, at today's gold price (approximately $2,027.44 per troy ounce), one pound of gold would cost about $29,560.08.

But that's only the case if you have a gold bar that weighs a standard pound, which would be unlikely since bullion is usually measured in troy weight units. If the gold bar weighs one troy pound, it only weighs 12 troy ounces. That would mean the price of the bar would be approximately $24,329.28.

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Frequently asked questions about investing in gold

Find the answers to some of the most common questions about investing in gold below.

Why should you invest in gold?

There are several reasons to consider investing in gold, including:

• The inflation hedge: The price of gold typically climbs alongside inflation. So, it can be a great way to protect your portfolio's value during inflationary cycles.
• Counter market volatility: Gold "is not correlated with the typical stocks and bonds you will find in your traditional portfolio," says Peter J. Klein, founder and CIO at ALINE Wealth. "So, it moves in a different direction than the majority of one's portfolio." As such, investors often use the precious metal to reduce risk of losses due to market volatility and potentially increase their risk-adjusted returns.
• An alternative to traditional currency: As a dollar alternative, gold is usually an effective way to hedge against economic pressures.

What causes movement in the price of gold?

Several factors play a role in the price of gold. It tends to increase in value when:

• Inflationary pressures are on the rise
• The stock market turns bearish
• Economic conditions are a cause for concern

Other factors may play a role in gold's value as well. For example, if miners produce less gold than expected in a set period, the price could rise. Should production be higher than expected, gold's price could fall.

Moreover, geopolitical conditions also play an important role in the price of gold.

"From a geopolitical perspective, gold is also an asset that is sought out in times where there are risks in the geopolitical front," says Klein. "For millennia, gold has been a safe haven for investors in times where the geopolitical fronts are heating up."

What are the best ways to invest in gold?

The best way for you to invest in gold depends on your unique investment goals and financial capabilities. That said, some of the most popular options include:

• Physical gold: You can buy physical gold coins and bars and store them in your safe or a third-party depository.
• Physical gold ETFs: Physical gold exchange-traded funds (ETFs) pool investments from a wide range of investors and use the money to purchase and store gold bullion. Each shareholder essentially owns a share of the gold in the ETF's vault. Investors share in the profits the gold generates based on the number of shares they own.
• Gold mining ETFs: Gold mining ETFs typically invest in a wide range of gold mining companies, rather than physical gold — though some of them have physical gold holdings as well. These funds can experience price movement as a result of gold news and news relating to the stocks they hold.

The bottom line

One pound of gold is worth between $24,329.28 and $29,560.08 when calculating it with today's gold spot price. Nonetheless, whether you buy one gram, one ounce or one pound of gold, it can be a wise idea to add some of the precious metal to your portfolio to offset potential losses due to other investment assets.