Completely Free Gold Scale Calculator
Jordan Crawford- The Gold-Eagle-Eagle (GEA) scale is an official scale used by the London Bullion Market Association (LBMA) to set daily gold and silver price.
- The GEA scale is an official scale used by the London Bullion Market Association (LBMA) to set daily gold and silver price.
- The GEA scale uses troy ounces, where 1 troy ounce is equivalent to 31.1035 grams.
The Gold-Eagle-Eagle (GEA) calculator is a free gold scale calculator that you can use to determine the price of gold given a certain weight and purity. The GEA scale is an official scale used by the London Bullion Market Association (LBMA) to set daily gold and silver price.
What Is the Free Gold Scale?
The free gold scale was created in 1980 by noted investor, economist, and trader, John Exter. It was intended to help traders better understand the relationship between gold's price and the dollar.
Exter believed that gold's price should be judged in relation to the value of the dollar, rather than against commodities or other arbitrary standards.
The gold scale's relative value is based on how gold's price would compare to the price of goods and services in the U.S. Free gold is calculated by taking the price of gold in dollars and dividing it by the average price of goods and services in the U.S.
For example, if gold were selling for $1,000 per ounce and the average price of goods and services in the U.S. was $5,000, then free gold would be $4,000 per ounce.
Calculating Gold Price
The gold scale calculator allows you to calculate gold prices in many currencies. The calculator supports both metric and imperial units.
Currency: Select from the dropdown list the currency in which you wish to calculate the price of gold.
Quantity: Enter the quantity you wish to calculate the price of.
Ingots: Select the gold bar type, weight, and purity.
Gold Price: The gold price will be displayed.
Gold Price Formula
The first gold price formula is a very simple one, and works just as well for calculating gold prices as for anything else. It relies on the notion of supply and demand, and the related concept of a free market.
The equation is:
P = S / D
where P stands for the price of gold, S stands for the supply of gold, and D stands for the demand for gold.
