Why do two similar gold bars have different prices, why? Gold is gold isn’t it?

Two similar gold bars have different prices, why? Gold is gold isn't it?

Why do two similar gold bars have different prices, why? Gold is gold isn’t it?

Yes, gold is gold. There is no difference. The value and purity of gold is the same on two equivalent gold bars.

However, the retail pricing of two equivalent gold bars which are produced by different refineries may be different.

This is because each gold bar has undergone a different cycle of costs associated with the refining and processing gold to 999.9 fineness, casting and minting, packaging, financing and logistics.

Then the gold bars are branded, packaged, stored, transported, marketed and distributed world-wide.

Distribution channels can be as innovative, competitive and persuasive as the risk appetite of the gold refinery and the chain of distribution.

Finally, the dynamics are of the retail sector which eventually sells the gold bars to end buyer create the ultimate selling price of a gold bar. 

Whilst the above explains why there are differences in price between the same bar weights the real question you can ask yourself is: should I pay a higher price for a bar of the same gold content?

The easy answer is: it is up to you. 

A few things, however, should be borne in mind:

Reputation: each refinery has its own reputation based on what the market considers to be the quality of its product. So, yes, each bar has the amount of gold it contains effectively stamped on itbut some refineries have a long standing tradition and reputation of producing certain bars of certain sizes consistently over decades and sometimes more.

Switzerland for example has a long reputation of gold refining and whilst production costs can be higher compared to lower wage countries, the reputation Switzerland has allows it to command a premium on its gold bars. Some gold refineries are accredited by the London Bullion Market Association (LBMA) as a “good delivery” refiner and as such go through stringent and regular quality checks which can affect cost.This is frequently used as a major unique selling point (USP) by the distribution and marketing chain and can command a premium

Design: A lot of bars are simple bars of gold with no frills. Other refineries have made a case of designing their bars to make them aesthetically appealing. Other refineries have special editions with a logo or symbol on it. Some will be happy to pay a higher premium for these bars.

Whilst the above examples, which may cause slightly higher prices, may not be enough to warrant paying a higher price in your personal view, do not forget that they may also affect the resale value of your bars.

There are also short-term reasons for differences in gold prices. 

Some retailers of gold bars may update their gold bar prices more frequently than others. 

Other retailers may choose to have a higher profit margin on one particular brand than another. 

Whilst those traders with larger inventories, may sell some or all their gold bars more aggressively. This creates difference in retail prices of two equivalent gold bars. 

During volatile gold price fluctuations, some retailers may wish to liquidate stocks of certain brands to raise cash and meet credit or other financial commitments and provide a “discount” or a “special offer” to assist in selling their stocks faster.

Several gold refineries in the Europe, Asia and the Far East and USA that are neither members of the LBMA nor part of the London good delivery list of accredited refiners also produce very substantial amount of gold bars of various dimensions, weights and purities and are active suppliers of gold bars to private and industrial consumers globally. 

All these factors play a role into the pricing of a gold bar for retail sale.

Auric Gold knowledge base | all

Gold Market News

Adventus, Salazar Announce Additional Drill Results From Curipamba

According to the release, the first phase of infill drilling commenced in early March 2018 with the objective of upgrading the confidence level of the higher-grade portion of the open-pit constrained mineral resource by decreasing drill spacing.

Angkor Signs USD $3.65 Million Earn-In Agreement with Hommy Resources on Banlung Property

Angkor Gold (TSXV:ANK, OTC:ANKOF) (“Angkor” or “the Company”) CEO Stephen Burega is pleased to announce that Angkor has entered into an Earn-In Agreement (the Agreement) with Canadian-based private company, Hommy 5 Resources Inc. (“Hommy Resources”), on Angkor’s wholly-owned Banlung property in northeastern Cambodia. The Banlung property is one of Angkor’s five licenses in Cambodia.

Wallbridge Intersects 122.35 g/t Gold Over 2.95 Metres And 41.02 g/t Gold Over 5.52 Metres In Newly Discovered Habanero Zone

Wallbridge Mining Company Ltd. (TSX:WM, FWB:WC7) ("Wallbridge" or the "Company") is pleased to announce continued positive results from its underground drill program and to provide an update on the ongoing development as part of the 35,000-tonne bulk sample and underground exploration program at its 100%-owned Fenelon Gold Property ("Fenelon").

Algold Reports High-Grade Drill Results at Salma – Eleonore East

Algold Resources Ltd. (TSXV:ALG) today announced preliminary assay results from drilling carried out in July and August, 2018 on the high-grade Salma-Eleonore East Vein System (“SVS” or “Salma”) located at the Corporation’s Tijirit Project in Mauritania. 

Golden Predator Intercepts 8.5 meters of 5 g/t Gold at Brewery Creek Project; Drilling Extends Known Gold Mineralization over 200 m

Golden Predator Mining Corp. (TSXV:GPY) (the “Company”) is pleased to announce the successful completion of a 22 hole exploration and metallurgical drilling program at its 100% owned Brewery Creek Project in Canada’s Yukon, and reports today on the results of the exploration drill program designed to expand the current resource. 

New High-Grade Zone Located North of Gladiator near Surface with 27.4 g/t Au over 7.0 m

Bonterra Resources (TSXV:BTR; OTCQX:BONXF, FWB:9BR1) (the "Company" or "Bonterra") is pleased to announce the discovery of a new high grade gold zone near surface to the north of the Gladiator Gold Deposit with an intersection of 27.4 g/t Au over 7.0 m.

Enforcer Gold and SOQUEM Announce Amended & Restated Mineral Resource Estimate for the Roger Project

Enforcer Gold Corp. (TSXV:VEIN) ("Enforcer" or the "Company") along with SOQUEM today announce the results of an amended and restated mineral resource estimate on the Mop-II gold-copper deposit at the Company's Roger project.

Top Zimbabwe Miner May Pay Suppliers in Gold

Due to a cash shortage in Zimbabwe, gold miner Metallon has floated the idea of paying its equipment suppliers in gold in order to avoid disrupting its expansion plans.

Falcon Adds 41 More Claim Units to Coomer Lake Vanadium-Titanium Project, Northern Ontario

Falcon Gold Corp. (TSXV:FG) ("Falcon" or the "Company") is pleased to report it has acquired through staking, a further 41 mining claim units that are contiguous with its Coomer Lake Vanadium-Titanium property in the James Bay Lowlands in the Porcupine Mining Division of northern Ontario.

Comstock Metals Finishes Surface Exploration at Rawhide Cobalt-Silver Property and Plans Drilling Program

Comstock Metals (TSXV:CSL) ("Comstock" or the "Company") is pleased to report results from its Rawhide Cobalt-Silver Property, Ontario.

Lock in gold price

Buy now !

Pay a deposit and fix the price of your gold bar. Pay the remaining.

Call us now More Info