Gold price basics: spot price, merchant price, and why they differ
The gold price on your phone is not the price your supplier charges. Here's why — and how to use the right price in your calculations.
What is the spot price?
The spot price is the international benchmark, traded continuously on COMEX (New York) and LBMA (London). It's quoted in USD per troy ounce — and one troy ounce is 31.1035 grams, not 28.35 like a regular ounce.
price_eur_per_gram = (spot_usd_per_oz ÷ 31.1035) × EUR/USD_rate
What is the merchant price?
The merchant price is what your local supplier or refinery actually charges per gram at a specific karat. It's always above spot, typically by a 3 – 8% premium that covers the merchant's storage, insurance, bid/ask spread, and profit.
How goldsmiths receive daily prices
- Daily SMS or WhatsApp from the merchant, broken down by karat
- Trade association published prices (some EU and Gulf countries)
- Calculated from spot + a known fixed premium
What drives gold price movements
On a practical level: USD strength (gold and USD move inversely), inflation expectations, geopolitics, central bank buying, and investor demand. You don't need to forecast — you just need to use today's price for today's quote.
How to use prices in Goldify
In your profile you can set a "merchant premium" once. Goldify applies it automatically to every calculation, with a manual override always available on each quote.
Set your merchant premium in Goldify
Configure your default premium in your profile so every quote uses your real merchant rate.