Market Insights · 5 min read
How Gold Is Priced
No individual supplier sets the price of gold. Physical quotations are built from an international reference price and adjusted for the specific material and terms.
The reference price
Gold trades continuously in international markets, producing a widely referenced spot price per troy ounce. Benchmark prices published at set times each day are used for contract settlement.
Any physical quotation begins from that reference rather than from an independent valuation.
From reference price to physical quotation
A physical quotation reflects the fine gold content of the actual material, the form it takes, the quantity, the delivery terms and the costs attached to moving and verifying it.
Where material is unrefined, the payable content is established by assay, so weight alone does not determine the figure.
Interpreting unusually low offers
Offers far below international pricing are a warning sign. Gold is a globally traded commodity, and a genuine holder of metal has no commercial reason to sell substantially below the market.
Serious commercial discussion covers the price basis, payment mechanism, delivery terms and the point at which title and risk pass.
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