Gold Premium

[betterinvestmentthanshare]

Anyone notice the premiums on gold recently?
We are supposedly in a bear market and 1oz cast bars have a $200aud premium.
That’s higher than in the last bull run.

Gold price tells you one thing, premium price tells you another.

I think we are about to see price explosion soon

 

[spannermonkey]

Manufacturing costs don't care about spot .

 

[boston]

“Gold price tells you one thing, premium price tells you another.”

Quite a thought provoking comment especially as processing costs etc rise.

 

[trew]

Look around a bit more - there are dealer sites with premiums lower than $200 for 1oz gold

 

[dragafem]

Since the big run up high premium on everything..wont change for a while

 

[SouthernMelt]

It helps to put that A$200 as a share of the metal rather than in dollars. A 1 oz .9999 cast bar holds 0.9999 oz of gold, so at A$5,658/oz (17:52 UTC, 12 Nov) the metal is worth about A$5,658 × 0.9999 = A$5,657.

A$200 ÷ A$5,657 = about 3.5% over melt, or roughly A$5,857 all-in.

The same A$200 at half today's spot would have been 200 ÷ 2,829 = about 7.1%. The cost of pouring, assaying and shipping a bar tends to stay roughly fixed in dollars while spot moves, so a flat-dollar premium can look large on paper while being a modest share of the price. Comparing dealers on percent over melt (bar price ÷ (spot × fine weight) − 1) keeps it apples to apples, and bigger bars spread that fixed cost over more ounces, which is why a 5 oz or 10 oz cast often carries a lower percentage premium.