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

Metallis Announces Expansion of Mineralized Hawilson Monzonite, Drill Targets Identified and 2% NSR Purchase

Metallis Resources Inc (TSXV:MTS)("Metallis" or the "Company") announces positive results from its 2018 Phase 1 exploration program (the "Program") and has planned the first of two drilling campaigns on its 100%-owned Kirkham Property (the "Property"), prospective for multiple deposit types in the prolific Eskay camp of northwest British Columbia.

3 Factors That Could Boost Gold’s Performance in H2 2018

The World Gold Council has released its Mid-year Outlook 2018 and revealed three key factors that could bring gold out of its decline in the second half of the year.

Stakeholder Gold Corp. Announces Board of Directors Changes

Stakeholder Gold Corp. (TSXV:SRC) ("Stakeholder" or the "Company") is pleased to announce the appointment of Mr. Artie Hao Li to the Company's Board of Directors.

OZ Minerals Releases Quarterly Report

OZ Minerals has released its quarterly report for Q2 2018, detailing updates on its operations and production as well as the Avanco takeover.

War Eagle adds 122 hectares to the existing Kirana Goodfish Property, Kirkland Lake

War Eagle Mining Company Inc. (TSXV - WAR) ("War Eagle" or the "Company") is pleased to announce that it has completed the purchase of the Deloye Family Claims ("Deloye Claims" or "the Claims") located in the northeast corner of Teck and the northwest corner of Lebel townships, Ontario, 3.1 km north of the Kirkland Main Break. (Figure #1, #2 and #3.)

Nevada Sunrise Announces Commencement of Airborne Survey on Coronado VMS Property in Nevada

Nevada Sunrise (TSXV:NEV) is pleased to announce that an airborne electromagnetic survey has commenced on the Coronado VMS property ("Coronado", or the "Property"), located in the Tobin and Sonoma Range of Pershing County, Nevada, approximately 30 miles (48 kilometers) southeast of Winnemucca.

Fremont Identifies Silica Alteration and Arsenic in Soils at North Carlin Project, Nevada

Fremont Gold (TSXV:FRE) is pleased to announce that it has completed ground magnetometer and soil geochemical surveys over the Coyote and Alkali claim blocks on the northern part of the Carlin Trend (collectively, the North Carlin Project).

Nevada Sunrise Announces Commencement of Airborne Survey on Coronado VMS Property in Nevada

Nevada Sunrise (TSXV:NEV) is pleased to announce that an airborne electromagnetic survey has commenced on the Coronado VMS property ("Coronado", or the "Property"), located in the Tobin and Sonoma Range of Pershing County, Nevada, approximately 30 miles (48 kilometers) southeast of Winnemucca.

Enforcer Gold reports 7.0 % zinc and 1.2 g/t gold over 6 meters and provides resource estimate update at Roger project

Enforcer Gold Corp. (TSXV:VEIN) is pleased to report on the historical drill results of a second style of mineralization known to occur on the Roger project. Roger is advantageously located 5 km north of Chibougamau, Quebec, has all-season road access and is crossed by a power line that serviced the past-producing Troilus Mine. Enforcer is earning a 50% interest in the project from project operator, SOQUEM.

Newmont Completes US$69-million Northwest Exodus Expansion

Newmont Mining has completed a US$69-million expansion at its Exodus operation, which has resulted in a 10-year extension to production and will lower all-in sustaining costs by about US$25 per ounce at its Carlin mine during its first five years of operation.

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