Kilobar
A kilobar is a standardized 1,000-gram gold bar (approximately 32.15 troy ounces) that has become the most common format for both institutional and private bullion storage.
Its compact size, high purity, and easy tradability make it the preferred form for cross-border settlement, refinery output, and investor allocation outside large-scale central bank reserves.
Kilobars combine the production discipline of institutional bullion with the accessibility of private investment assets, forming a critical link in the global custody chain.
Definition and Market Position
A kilobar represents one kilogram of refined gold, typically with a fineness of 999.9 parts per thousand.
It is accepted globally for investment, retail, and professional storage, bridging the gap between 100 oz bars used in institutional custody and smaller minted bars used for personal holdings.
Kilobars are the standard settlement unit in the Swiss, Dubai, and Singapore refinery markets, where they are produced for both export and internal distribution.
They are also the predominant bar size used for conversion from 400 oz Good Delivery bars through refinery recasting.
Physical Specifications
| Parameter | Specification |
|---|---|
| Weight | 1,000 grams (32.15 troy ounces) |
| Purity | 999.9 parts per thousand (99.99%) |
| Dimensions (approx.) | Length: 117 mm · Width: 53 mm · Height: 8–9 mm |
| Form | Cast or minted bar |
| Markings | Refiner’s hallmark, serial number, fineness, and weight |
Kilobars are available in both cast and minted forms.
Cast bars are preferred for institutional storage, while minted bars — with polished surfaces and precise edges — are favored in investment portfolios and retail distribution.
Manufacturing and Refining Process
Kilobars are produced by LBMA-accredited or ISO 9001-certified refineries.
Production involves:
- Refining feedstock (doré or recycled gold) to 99.99% purity;
- Casting or minting gold into 1 kg molds or blanks;
- Stamping and engraving serial numbers, logos, and purity marks;
- Assay certification, ensuring compliance with LBMA standards;
- Packaging and registration for export or vault delivery.
Refineries such as Valcambi, Argor-Heraeus, Metalor, PAMP, and Emirates Gold are leading kilobar producers recognized in global bullion trade.
Storage and Custody Applications
Kilobars are widely used in allocated storage within professional vaults.
Each bar is individually numbered and listed in client barlists for insurance and audit purposes.
Due to their manageable weight, kilobars are suitable for:
- Institutional diversification across regional vaults;
- High-net-worth and family office storage portfolios;
- Refinery output held pending delivery to clients or distributors;
- Physical redemption from gold-backed investment products.
In institutional custody, kilobars provide flexibility for partial allocation or fractional redemption, where dividing a 400 oz bar is impractical.
Trade and Settlement Context
The kilobar serves as the dominant traded form of physical gold in Asia and the Middle East.
It is the standard delivery unit on the Shanghai Gold Exchange (SGE) and the Dubai Multi Commodities Centre (DMCC), where it supports settlement between refineries, dealers, and financial institutions.
Kilobars are typically denominated in grams or kilograms rather than troy ounces, aligning with the metric systems of non-Western bullion markets.
This standardization enhances cross-border liquidity and simplifies customs documentation for export and import.
Compliance and Verification
All kilobars must comply with:
- LBMA Responsible Gold Guidance (RGG);
- OECD Due Diligence Guidance for supply chain integrity;
- FATF AML/KYC standards for ownership and transfer transparency.
Independent audits verify that each bar’s serial number and certificate correspond to physical holdings in storage.
Bars held in institutional custody are included in periodic vault audits and insurance reconciliations to maintain full traceability and reporting accuracy.
Institutional and Private Relevance
The kilobar is the universal denominator of physical gold ownership.
For institutions, it provides liquidity, divisibility, and ease of transfer between vaults and jurisdictions.
For private investors, it represents a globally recognized, fully fungible asset that can be stored, insured, or redeemed without conversion.
Within the custody infrastructure, kilobars serve as the operational bridge between large-scale institutional reserves and individual ownership, maintaining the same standards of purity, auditability, and legal certainty that define the professional gold market.