Gold Investment Return Calculator
Calculate net profit or loss on physical gold and ETFs. Features Troy Ounce conversion, dealer premium adjustments, and inflation-adjusted real return analysis.
About
Trading physical gold involves costs that paper assets do not, specifically dealer premiums and weight conversion complexities. This tool calculates the true net return on a gold investment by accounting for the spread between the spot price and the actual retail price paid. It provides a realistic view of profitability by factoring in the "Buy" and "Sell" premiums, which often range from 2% to 8% for coins and bars.
A critical feature of this calculator is the Inflation Adjustment toggle. Gold is often held as a hedge against currency devaluation. By inputting an estimated inflation rate over the holding period, investors can distinguish between nominal gains (number of dollars gained) and real gains (purchasing power retained). This distinction is vital for long-term wealth preservation strategies.
Formulas
The calculator first normalizes the weight to grams using the conversion 1 oz t ≈ 31.1035 g. The financial outcome is determined by:
If inflation adjustment is enabled, the Real Return is calculated by discounting the revenue by the inflation rate i over the period:
Reference Data
| Item Type | Standard Weight | Grams (g) | Avg Premium (%) | Liquidity |
|---|---|---|---|---|
| Gold Eagle (1 oz) | 1 Troy oz | 31.103 | 3.5 - 5.0% | High |
| Gold Buffalo (1 oz) | 1 Troy oz | 31.103 | 4.0 - 6.0% | High |
| Krugerrand | 1 Troy oz | 31.103 | 2.5 - 4.0% | High |
| Gold Bar (1 kg) | 32.15 Troy oz | 1000.0 | 1.5 - 2.5% | Medium |
| Gold Bar (100g) | 3.215 Troy oz | 100.0 | 2.0 - 3.5% | High |
| Fractional (1/10 oz) | 0.1 Troy oz | 3.11 | 10.0 - 15.0% | High |
| Sovereign | 0.2354 Troy oz | 7.32 | 3.0 - 5.0% | High |