How Much is PublicGold’s Silver Spot Price?
I have been asked this question many times over dining table. Today we will look into how to calculate PublicGold’s spot price for their Silver bar product.
^ Prices published by Publicgold on 07/10/2011
We will take 250 grams as example. The steps to calculate PublicGold’s silver spot price are as followed:
Step 1: Calculate Silver Spot Price in Ringgit Malaysia
At current time of writing, the price is USD $31.95/oz. PublicGold’s US dollar exchange rate is 3. Therefore, USD $31.95 x 3.0 = RM95.85/oz
Step 2: Convert gram to Ozt
PublicGold uses metric standard for their product. We need to convert this to international standard which is Troy Ounce. PublicGold offers 250 grams, 500 grams and 1 kilo bar. This worked out to be:
| Gram (g) | Troy Ounce (ozt) |
|---|---|
| 250 | 8.04 |
| 500 | 16.08 |
| 1000 | 32.15 |
Step 3: Calculate PublicGold’s Total Silver Price
PublicGold charges RM20 for transportation fee for 250 grams bar. Thus, the Total Silver Price is RM 1,043 + RM 20 = RM 1,063.
Step 4: Get PublicGold Price Per Ozt
To do this, take Total Silver Price and divide it with 8.04 ozt. RM 1,063/8.04 ozt = RM 132.21. RM 132.21 is PublicGold Price Per Ozt .
Step 5: Calculate the spot
To calculate the spot, apply the following formula:
Spot price formula:
(PublicGold Price Per Ozt – Silver Spot Price)/Silver Spot Price
Applying the formula:
(RM 132.21 – RM 95.85) / RM 95.85 = 37.94%
That’s it!
There you have it. 5 simple steps to calculate PublicGold’s premium. You can download my free excel worksheet and use it to calculate PublicGold’s price from time to time.
^ Free spot price calculator!
PublicGold-Silver-Spot-Price-Calculator.xls (Excel 97-2003):
Click here to download the free calculator.
You can also use the calculator to calculator PublicGold’s buyback spread.
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