Gold coins and gold bars are priced above the gold spot price because producing, trading, and distributing these products involves additional costs. Private investors typically buy weights ranging from 1 gram to 1 kilogram, while the gold price (also known as the spot price) is based on large wholesale bars of 400 troy ounces (approximately 12.4 kilograms), known as Good Delivery bars. These 400-ounce bars are traded between banks and institutional investors and stored in professional vaults, such as those associated with the London Bullion Market Association (LBMA). The spot price therefore represents the wholesale price of gold.
The following factors explain the price difference:
In summary: Gold coins and gold bars are more expensive than the spot price because they are produced and traded in smaller weights. Additional costs for production, distribution, supply, demand, and quality result in retail prices that are higher than the international gold spot price.
Learn more about the difference between gold bars and coins.
Learn more about the gold spot price.