GOLD ACADEMY
How Gold Pricing Works
The spot price is only the starting point. To compare quotes intelligently, you need to understand purity, premiums and spread.
1. The spot price
The spot price is the international reference value for one troy ounce of pure gold for near-immediate delivery. One troy ounce equals approximately 31.1035 grams. Gold is commonly quoted in US dollars, so a local price also moves with the relevant exchange rate.
2. Purity and fine-gold weight
24-karat gold is nearly pure, while 18K contains 75% gold and 14K contains 58.5%. Metal value is based on fine-gold weight: total weight multiplied by the proportion of pure gold. Ten grams of 18K gold therefore contains about 7.5 grams of fine gold.
3. The premium above spot
Bars and coins require fabrication, testing, packaging, transport and insurance. These costs, together with the dealer margin, form the premium. Smaller products often carry a higher premium per gram because their production costs are spread across less metal.
4. The buying and selling spread
A dealer sells above spot and will generally buy below it. The gap is the spread. Before purchasing, compare both the retail price and the buy-back terms. A low initial premium does not always produce the best overall transaction.
5. Collectible and craftsmanship value
Rare coins and well-made jewellery may be worth more than their contained metal. Condition, provenance, demand and workmanship all matter. The GOLD.AC calculator estimates metal value; it cannot assess collectible or artistic premiums.