Value Of Gold In The World Market, Is It The Same Internationally?

Gold is an international commodity that offers the benefit of an inflation hedge as a real store of value. You may have noticed that the current value of gold can appear differently depending on the country of origin. Aside from differences in currency, some countries measure the value of gold in different weights. On top of that, fees associated with the price of gold bullion varies depending on the country. This can make the price of gold appear differently, but does this make the price of gold different globally? 

Is the Live Price of Gold The Same Internationally?

Generally speaking, the value of gold is mostly equivalent no matter which country you are in. For example, the gold price in the USA is roughly the same as the gold price in India. It is just measured in a different currency. This is what makes gold an arbitrage-free market, otherwise gold would be bought in other markets to take advantage of the price difference. 

But when you look at the value of gold per ounce in any country, you may notice key differences. For example, gold traded at $1,741.40 at 10:30 AM EST in the US on 3/19/2021, but it traded around ₹45,070 in India at the same time. Different currencies have different strengths, but generally, most gold prices internationally are based in USD. Interestingly, this does not indicate that the prices to investors are the same everywhere. 

Depending on the country, there can be a major difference in prices for a Gold American Eagle, for example. This is because of the cost of physical delivery, warehousing, taxes, and even fees with converting local currency to USD and vice versa. 

How Do Countries Measure Gold Bullion?

Measuring gold in other countries can be very different as well, which changes how each country prices gold bullion. Actually, this is why the Chinese gold and silver panda coins used to be struck in troy ounce sizes. This included the 1/20 troy ounce size up through 1 kilogram until 2016. That year, the mint shifted over to using gram weight sizes. 

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Disclaimer: This article is not meant to serve as professional economic advice. Any action you take upon the information from this article and website is strictly at your own risk.

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