Jump to content
Sign in to follow this  
Barry Scott

Price of GoldCoins against bars

Recommended Posts

Based on todays Gold prices on Coin Invest Direct, I'm calculating the Gold price based on the purchase of a 250 Gram bullion bar at £507 per oz against roughly £605 for 1 oz coins.

Have I completely miscalculated here or is this highlighting the premiums being charged on coins at the moment?

If i'm correct, what do people feel about bars over coins or vice versa?

 

Thanks

Share this post


Link to post
Share on other sites

Are you using troy ounces (31.1 g) when working out price per (troy) ounce from bullion price? Numbers look to me like you are using standard ounce (28.4g).

 

 

Share this post


Link to post
Share on other sites

Just in case you guys didn't know you can type:

 

100g in troy oz

 

into Google and it will tell you that calculates as 100 grams = 3.21507466 troy oz

 

Also works with currencies e.g. 818usd in gbp gives 818 U.S. dollars = 539.364368 British pounds

 

 

Share this post


Link to post
Share on other sites
Just in case you guys didn't know you can type:

 

100g in troy oz

 

into Google and it will tell you that calculates as 100 grams = 3.21507466 troy oz

 

Also works with currencies e.g. 818usd in gbp gives 818 U.S. dollars = 539.364368 British pounds

 

Or you can even combine weights and currencies into one query... eg: 346.25 usd per 12.15 grams in gbp per troy ounce

Share this post


Link to post
Share on other sites

Barry,

The NZ Mint charges exactly the same for bars and coins. I would expect the price to be pretty similar unless the coins have extra appeal.

For bullion what matters is the premium to buy and the price you'll get when you sell. This is quite important. Suppose you get a "bargain" when you buy, but the price goes up 10x, and the sell price is well below spot, you could be much worse off than paying a little more when you buy.

 

For example, the NZ MInt charges the same for bars and coins, but pays more for coins.

 

Obviously small sizes get more above spot due to the extra work involved in making/selling smaller quantities.

Best buy 400oz bars for really low margins ;):D

Steve

Share this post


Link to post
Share on other sites

Buying from them:

 

250g bullion bar £4480.04

1oz = 31.1g Philharmoniker £588.14

I think it's easiest to work out the cost for 250g of gold.

So 250/31.1 coins needed = 8.039 coins = £4727.81

So the coins are £4727.81/£4480.04 = 5.53% more.

 

Selling back to them:

 

250g bullion bar £4236.40

1oz = 31.1g Philharmoniker £539.86

So 250/31.1 coins = 8.039 coins = £4339.71

So the coins sell for £4339.71/£4236.40 = 2.44% more.

 

If that stays the same when gold is twice the price, you can see that although the coins cost more to buy, they also sell for more.

And the coins will probably be easier to sell, and in smaller quantities than one larger bar.

Share this post


Link to post
Share on other sites

No worries :D

I was interested to see whether I would get the result I expected.

Phew, I did, more or less :D

 

And now I know what Philharmonikers look like !

 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

Sign in to follow this  

×