Gold has recently surged to record highs, propelled by geopolitical risks, Central bank purchases, and a weakening dollar.
The "premium" in precious metals is the additional cost above the spot price that you pay for a physical item. This calculator compares the purchase price to market rates to get the premium you will pay on an item. Knowing the premium helps you understand if you are getting the best price for the item.
Note: Most things in the U.S. are weighed using regular ounces, which are about 28 grams. Gold and other precious metals use a troy ounce, which is about 31.1 grams.
Gold has been humanity’s oldest and most trusted form of wealth, valued for thousands of years by civilizations from the Egyptians to the Romans to the Chinese. Long before paper money existed, people used gold because it was rare, beautiful, and didn’t decay or corrode. Over time, it became the foundation for trade and the backbone of entire economies. By the 1800s, most major nations tied their currencies to the gold standard, giving money real backing and stability. Even after the United States left the gold standard in 1971, gold kept its reputation as “real money” and a safe place to turn when faith in government-issued currencies weakened.
For today’s investors, gold continues to serve as a hedge against the U.S. dollar and inflation. When the dollar loses value due to high debt, money printing, or rising prices, gold often moves in the opposite direction, helping to protect purchasing power. That happened in the 1970s when inflation soared and the dollar dropped, sending gold prices to record highs. And now, with the dollar showing signs of weakness again, gold is once more gaining attention as a steady, long-term store of value. While it doesn’t pay interest or dividends, gold’s strength lies in its ability to hold worth across generations, giving investors a sense of security when paper money and markets feel uncertain.
One of the main levers affecting gold is central bank policy. Decisions by the U.S. Federal Reserve have a big impact and it’s not just about the nominal interest rate. The real rate (nominal rate - inflation) is a driving force behind gold demand. When real interest rates are positive and rising, holding non-yielding assets like gold becomes less attractive because investors can earn a real return elsewhere (bonds). Conversely, when real rates are negative or falling, gold tends to gain appeal. In recent times, even though many markets expected rate cuts, gold has continued to climb, showing that some of that anticipated easing is already priced in.
Because inflation remains sticky in many economies, the Fed struggles with a balancing act. If they cut too early, inflation could resurge and if they cut too late then growth might stall. Each hint of rate cuts is often met with enthusiasm from gold bulls, since lower real rates reduce the opportunity cost of holding gold.
Gold is denominated in U.S. dollars in global markets, so any movement in the dollar has an outsized influence on gold’s price. When the dollar strengthens, gold typically becomes more expensive in other currencies, which can dampen demand from overseas buyers, putting downward pressure on its price. On the flip side, when the dollar weakens, gold often rises in local terms. Recently, a weaker dollar has been a tailwind for gold’s gains.
Moreover, many international players (sovereign funds, central banks, institutional investors) think in their own currency terms. If holding dollars is seen as risky or diminishing in value, they may shift toward real assets like gold. That kind of currency hedging behavior amplifies the link between dollar swings and gold demand, especially in times of volatility.
One of the structural stories behind gold’s recent strength is the steadily increasing appetite from central banks and large institutions. Many monetary authorities are diversifying their reserves, moving away from pure reliance on U.S. Treasuries or dollar-based assets, and turning to gold. Goldman Sachs, among others, has flagged this shift as a medium- to long-term tailwind for gold.
Additionally, gold-backed ETFs and institutional flows bring a liquidity dimension. When big money flows into ETFs, it forces physical gold purchases by funds, tightening the supply-demand balance. That feedback loop means that sentiment can translate quickly into price moves when institutional demand adds fuel.
Gold has always been considered a hedge against inflation. When inflation erodes the purchasing power of cash, investors often turn to gold as a store of value. In environments of sticky inflation, weakening growth, or policy uncertainty, gold often gains as a “safe” alternative. In 2025, gold’s rally has been partly driven by these inflation fears plus uncertainty over economic trajectories.
Beyond inflation alone, global economic unease ranging from geopolitical conflicts to trade uncertainties, or concerns over debt sustainability will boost the “safe haven” premium on gold. In volatile markets, gold often behaves like insurance. Even if its returns aren’t stellar in normal times, it becomes more attractive when other assets struggle. That extra demand in uncertain environments gives gold upward momentum beyond pure inflation hedging.
APMEX (American Precious Metals Exchange) is a major U.S. dealer with very high annual sales and a huge product catalog.
One of the largest platforms globally that lets private investors buy, sell, and store gold, silver, platinum, etc., in vaults around the world.
Also among the top in net sales among online bullion & precious metal stores globally.