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!

Download! 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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