What is the gold price? It is a quotation for a defined form of gold under particular market and settlement conventions. A wholesale spot indication, benchmark auction, futures contract, retail coin price and scrap-gold bid are not the same transaction.
This page deliberately does not publish a supposedly live number. It explains how to evaluate a quote from the source you choose and how to carry that number into a transparent calculation. Start with the static price-source directory.
The six-part gold quote checklist
- Source: Who published the number, and is it a primary market source, dealer quote or republished indication?
- Currency: Is it US dollars, euros, pounds, yen or another currency?
- Unit: Is the quote per troy ounce, gram or kilogram?
- Time: What is the timestamp and timezone? Is the market open, closed or unusually illiquid?
- Quote type: Is it bid, ask, midpoint, benchmark result, last trade or futures settlement?
- Market basis: What form, location, quality and settlement convention does it assume?
If any of these facts is missing, write it beside the number before comparing it with another source. Two quotations can differ without either being arithmetically wrong because they describe different sides, times or instruments.
Spot, benchmark, futures and physical prices
| Label | What it generally represents | Why it may not equal your transaction |
|---|---|---|
| Spot reference | Professional-market value for near-term settlement in a specified wholesale context | A household item is not automatically acceptable wholesale bullion in the required location |
| Benchmark | The outcome of a defined price-discovery procedure at a stated time | It is a reference point, not a standing retail offer for every form of gold |
| Futures | A standardized contract for a specified delivery month under exchange rules | Time, financing, delivery rules and contract size distinguish it from immediate physical metal |
| Dealer retail ask | The amount charged for a specific coin, bar or other product | Includes product fabrication, distribution, authentication, inventory and dealer margin |
| Dealer buyback bid | What a buyer offers for an identifiable product at that moment | Reflects resale demand, verification, payment, inventory and spread |
| Scrap offer | A net bid for recoverable gold in jewelry or mixed material | Starts from tested fine-gold content and accounts for non-gold weight, processing, risk and margin |
When a market page says only "gold price," it often presents a convenient wholesale reference. That can be useful, but usefulness depends on labeling it honestly.
Gold price per troy ounce, gram and kilogram
Precious metals are commonly quoted per troy ounce. One troy ounce equals exactly 31.1034768 grams. The ordinary avoirdupois ounce is 28.349523125 grams and must not be substituted.
price per gram = price per troy ounce ÷ 31.1034768 price per kilogram = price per troy ounce × (1,000 ÷ 31.1034768) price per troy ounce = price per gram × 31.1034768| Quantity | Equivalent | Important distinction |
|---|---|---|
| 1 troy ounce | 31.1034768 grams | Heavier than one ordinary ounce |
| 1 gram | About 0.0321507466 troy ounce | Use the same conversion for price and fine-metal weight |
| 1 kilogram | About 32.1507466 troy ounces | A kilogram contains 1,000 grams |
| 1 troy pound | 12 troy ounces | Not the 16-ounce avoirdupois pound |
From a gold quote to contained-metal value
First find the net gold-bearing weight. Gross jewelry weight can include stones, clasps, springs, steel watch components and dirt. Next establish a realistic fineness. Finally, convert that fine-gold weight into the same unit as the reference price.
net weight × gold fineness = fine-gold weight fine-gold troy ounces × price per troy ounce = reference melt valueSuppose an item contains 15 grams of fine gold and the chosen reference is quoted per troy ounce. Divide 15 by 31.1034768 to obtain approximately 0.48226 fine troy ounce, then multiply by the reference price. Our gold value calculator performs this arithmetic from a price you enter.
Keep currencies consistent. If your reference price is in US dollars, the calculated reference value is also in US dollars. A currency conversion creates another timestamp, source and spread that should be recorded.
Why physical gold trades above or below a reference
A reference quote does not eliminate the work of turning a particular object into a saleable product. Differences can reflect:
- Form and recognition: an accepted bar is easier to resell than mixed filings or an unverified necklace.
- Location: transport restrictions, local demand and settlement location matter.
- Lot size: small transactions carry more testing, labor and payment cost per gram.
- Timing: a buyer exposed to price movement may widen a spread or define a short quote-lock period.
- Documentation: invoices, hallmarks, bar lists and provenance can reduce uncertainty.
- Alternative value: collectible, artistic, branded or historical value may exceed melt.
Costs are not automatically evidence of an unfair deal, but neither are unexplained deductions self-justifying. Compare transparent net offers based on the same weight, test and pricing time.
Bid, ask and midpoint
The bid is the price at which a quoted party indicates willingness to buy; the ask is the indicated selling price. The gap is the bid-ask spread. A midpoint is simply halfway between the two and may not itself be executable.
For a seller estimating proceeds, an ask price is usually the wrong side to treat as a cash bid. For a buyer estimating acquisition cost, a bid omits the amount charged to buy the product. Always label which side was used.
A repeatable price-check workflow
- Record the quote source, time, timezone, currency, unit and quote type.
- Identify whether the object is bullion, a coin, jewelry, a collectible or mixed scrap.
- Establish net gold-bearing weight and a defensible fineness.
- Calculate fine-gold content and reference melt value.
- Ask each buyer to show weight, test result, pricing point, deductions and final payment.
- Compare like with like, including shipping, insurance, commission, settlement delay and return terms.