The price of gold hit an all-time high this week, driving the price of a standard gold bar up to $1 million for the first time ever.

A typical gold bar as we think of it weighs in at 400 Troy ounces, or 27.5 pounds, according to the U.S. Gold Bureau. As of Friday around noon, a bar of that size sells for a little over $1.3 million, with 1 oz valued at over $2,500.

The record highs reported this week reflect a price that has skyrocketed in recent years and even within months. From the beginning of the year to Aug. 22, 2024, the price of gold rose from $2,066.32 per Troy ounce to $2,500.72, representing a 21.02% increase. At closing on Tuesday, spot gold was valued at $2,514, the highest price record in history.

Even wholesale grocer Costco got in on the modern gold rush beginning in late 2023, launching the sale of 1 oz gold bars and later other precious metals and coins.

Here's what to know about the record-breaking prices.

Costco is selling lots of gold:Should you be buying? How this gold rush impacts the market

What is the price of gold?

The price for spot gold currently stands at $2,515.83 as of early Friday afternoon.

The units of measurement generally used in this valuation are Troy ounces, a unit of measure for precious metals that is heavier than a regular ounce, according to the American Precious Metals Exchange (APMEX). One Troy ounce equals 1.097 "normal" ounces or 31.10 grams.

The unit of measurement was first used in the Middle Ages, originating in Troyes, France.

The term "spot" gold refers to the current market price at which gold can be bought and sold for instant delivery, also according to APMEX. It represents the market value of gold at this moment as opposed to in the future or long term.

Gold prices:Track the price of gold over the past year with Blueprint

Why is the price of gold going up and how is it measured?

According to the investing website Investopedia, the price of gold is influenced by a number of market factors including supply and demand, interest rates, market volatility and potential risk to investors.

The precious metal has seen a rise in value over the past five years as it has climbed from a spot price of roughly $1,200 an ounce in 2019.

While research has found that gold doesn't directly seem to correlate with inflation in any meaningful way, Jonathan Rose, co-founder of Genesis Gold Group, told CNBC that people are likely buying more gold in an attempt to own some sense of stability in an economy that is rife with inflation, a tough real estate market and a growing distrust for banks and other financial institutions.

Rose also told the outlet, "The outlook for stability in the market isn’t good and people want a [tangible] asset that’s going to be a safe haven. That’s what gold and silver provide."

Owning a piece of the real stuff is appealing to people looking to build a sense of self-sufficiency that they believe will withstand a turbulent cash market.

Is your gold bar from Costco worth $1 million?

Wholesale grocer Costco made headlines when it began selling gold bars in Oct. 2023, resulting in over $100 million in sales of the precious metal in the first fiscal quarter of 2024.

The Costco gold bars weigh in at one Troy ounce, a far cry from the 400 Troy ounce bars currently being valued at $1 million.

As of early Friday afternoon, one Troy ounce of gold is valued at $2,515.83 If you happen to have about 400 of the Costco bars on hand, then you might be looking at a stash that could sell for roughly $1,006,332.

Considering the retailer has a purchase limit of two bars per customer, however, it's unlikely that investment will make you the next bonified millionaire.