Before comparing two gold prices, ask which one you can accept

Compare offers with matching terms

The LBMA’s wholesale code asks market participants to distinguish firm and indicative prices. For a dealer comparison, write down whether the price is an indication or an offer that the counterparty says can be accepted under defined conditions. Record product, side, quantity, currency, location and settlement terms. Ask when the quote expires and what action confirms acceptance. A timestamp alone cannot tell you whether the displayed price was actionable for your order.

A physical dealer’s headline can be a useful reference for one form or size. The final transaction may require different handling, delivery or availability checks. A quote for a single item can also differ from a quote for a larger quantity. Ask the dealer to state the all-in amount and the conditions in a record you can retain.

Source notes: [1] LBMA · Global Precious Metals Code

An example of the wrong comparison

Suppose one dealer sends a price valid for a specified bar for sixty seconds, while another shows an undated website reference for a different stock item. The second screen can look cheaper. To compare them, request an actionable price for the same product and quantity at a comparable time. The time limit and the prices in this example are illustrative.

If neither dealer offers the full quantity at one price, compare the amounts actually offered at each size. Keep the unquoted remainder separate. Extrapolating the first price to the entire order gives a clean spreadsheet number whose underlying offer was never made.

Keep three times in the journal

Capture the time the offer was communicated, the time you attempted to accept it and the time the counterparty confirmed the transaction. If the offer expired or required re-quotation, log that state explicitly. A changed price after expiry should be attributed to the new quote. A confirmed transaction belongs in the completed purchase record.

The Dubai premium and buyback guide explains how to compare a purchase with its exit. Start that calculation after the purchase and resale quotes have comparable terms. A quick check on firmness can save more research time than reconstructing an attractive price that was never available in the required size.