What Gold Price Am I Looking At?
Two 'gold prices' can differ by 20-30% and both be correct — they're just from different layers of the price stack. Enter a price to find out which layer you're looking at.
Identify a price
The 10-layer gold price stack
Every gold price you see comes from one of these layers. From international spot to pawnshop, each layer adds (or subtracts) value for a reason.
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1
International spot rate (XAU/USD)
The wholesale interbank price for 24K gold in USD per troy oz. Set continuously by the LBMA and futures markets. This is the number quoted on financial news.
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2
LBMA PM fix
A once-daily benchmark published at ~3 pm London time. Used in physical gold contracts and some ETF valuations. Usually within 0.1–0.3% of spot.
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3
Local bullion association reference rate
India: IBJA rate (published daily, excludes GST and making charge). Dubai: Dubai Gold Souk price. These are metal-only prices without retail markup — often the number people quote when they say "the gold rate is X."
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4
After import duty
Spot × purity × FX × (1 + import duty%). India charges 15%, Indonesia 5%, most GCC countries 0%. Duty is compounded onto the price at the border.
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5
Bullion product price (coins & bars)
After duty × (1 + bullion VAT%) × (1 + dealer premium 1–8%). Investment-grade gold (≥99.5%) is VAT-exempt in the EU and UK; silver almost never is. This is what you pay at a reputable coin dealer.
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6
Jewelry base rate (metal value + jewelry VAT)
After duty × (1 + jewelry VAT%). Jewelry VAT is often higher than bullion VAT — India charges 3% GST on gold; UAE charges 5%. Making charge not yet included.
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7
Jewelry retail with making charge
Jewelry base × (1 + making charge). Making charge for simple bangles runs 8–12%; for handcrafted or kundan pieces it can reach 50–100% of metal value. This is the price on the tag at a jewelry shop.
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8
Branded or designer jewelry premium
Tanishq, Cartier, Tiffany, etc. add a brand premium of 10–40% on top of standard making charges. Part covers design, part brand value.
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9
Buyback / scrap rate
The price a dealer pays when you sell your gold. Typically 5–12% below the metal value (not the retail price) to cover dealer margin and melt/assay costs.
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10
Pawnshop / gold loan value
Collateral value when pledging gold as a loan. Banks and NBFCs typically lend 65–80% of metal value. Pawnshops often lower, at 55–70%.