If you paid more than $28.45 per gram of gold today (1/20/2008), you lost money. Today's spot gold price was about $885/oz. Remember, 1 Troy oz. = 31.1035 grams (akmining.com/jour101.html, and others). So 1gram = $28.45; 5gram = $142.25; and 10grams = $284.50. If you plan on keeping your gold you also have to subtract the average shipping and insurance ($8.35).

      Current price one ounce gold /31.1035 grams =  price/gram

 If you bid and pay more than this while gold is at $885/oz. you've paid a high premium.

If you expect gold to go up (speculating) you've bought at a high and expect higher, the premium might be worth it. But it might take a long time to recoup the cost of that premium. For example, if you paid $30.00/gm for your gold today, it would equal $933.105/oz. Gold must reach this mark before you breakeven. Shipping and insurance would add to this and the smaller the mass the greater the influence of these costs. Another choice is you convince someone else to spend $25.10/gm, or more, to make your profit (return of 0.4%). There's a sucker born everyday but without a rise in the spot gold price, the informed consumer is not likely to take the bait.

Alternatively, you could also look at the shipping, insurance and over bid price as a commission paid to the Post Office and the Seller. Again, if you paid $30.00/gm, their return would be about 27%. Not bad for them. Not good for you.

If you want to speculate and you've got money to burn, go for it. If you're stocking up for the coming holocaust, go for it. If you think you're investing, think again. You are losing ground with each purchase. You'd be better off following biggalswholesales advise in their related guide and buy local.

Again the equation for a reasonable deal is: divide the current spot gold price of gold (monex.com) at one ounce by 31.1035 grams and you will get the cost of gold per gram. If you're going to keep it for a rainy day you should subtract the shipping and insurance costs or accept this as the commission you are willing to pay.

Gold is a great hedge for inflation, but bid wise and make money! If this guide helped let me know. Vote yes.