An Analysis of the Differences Between International Gold Prices, Bank of Taiwan, and Jewelry Store Gold Prices

Gold, as an important investment and safe-haven asset, has prices that vary across different purchasing channels.

This article will take an in-depth look at the relationship between international gold prices, Bank of Taiwan listed prices, and jewelry store gold buyback prices in the Republic of China, comparing prices across platforms on the same day to help us better understand the reasons behind these price fluctuations.

International Gold Price: The Benchmark of the Global Market

The international gold price is the benchmark price of gold in the global market, usually quoted in US dollars per ounce.

Let’s use the international gold price on November 22, Year 113 of the Republic of China (2024), US$2,715.84 per ounce, as an example for illustration. This price is affected by many factors, including supply and demand, geopolitical situations, and economic data. As a reference price for the global market, the international gold price has a direct impact on gold prices in other regions.

Bank of Taiwan Gold Listed Price: The Impact of Exchange Rates and Fees

The gold price of the Bank of Taiwan of the Republic of China is quoted in New Taiwan dollars per gram, and the price on the 22nd was NT$2,806 per gram.

This price is converted from the international gold price and takes into account the exchange rate and the bank’s fees. For example, assuming an exchange rate of 1 US dollar = 32 New Taiwan dollars, the international gold price converted to a per-gram price is approximately:

US$2,715.84/ounce * 1 ounce/31.1035 grams * 32 NT$/US$ ≈ NT$2,800/gram

This is close to the Bank of Taiwan’s quote, with the difference mainly coming from fees and market adjustments.

Jewelry Store Buyback Gold Price: Processing Fees and Retail Profit

Jewelry stores and pawnshops in the general market are the main channels providing gold buyback, and are therefore also subject to official regulation. The gold price at a general jewelry store is quoted in New Taiwan dollars per mace (qian), and the price on the 22nd was NT$10,810 per mace.

1 Taiwanese mace equals 3.75 grams, so the jewelry store gold price converted to a per-gram price is approximately:

NT$10,810/mace ÷ 3.75 grams/mace ≈ NT$2,882.67/gram

Jewelry store transaction prices are usually a bit more expensive than banks because they include processing fees, brand premiums, and retail profit.

Results and Discussion

• The international gold price is the benchmark price of the global market, affected by many factors.
• The Bank of Taiwan gold price is converted from the international gold price and takes into account the exchange rate and fees.
• The jewelry store gold price includes processing fees and retail profit, so it is usually higher than the bank price.

The relationships between these prices reflect the cost structures of different markets and services. I hope this article helps you better understand the dynamics of the gold market and make wiser investment decisions. Readers are welcome to leave comments below sharing their thoughts!