Gold Price Today in Europe (EUR)

How the euro gold price is formed

There is no separate European gold market price. Dealers in Frankfurt, Vienna, Paris or Milan take the dollar price set in London and New York and convert it at the EUR/USD rate. When the euro strengthens against the dollar, gold in euros rises less than gold in dollars, or falls; when the euro weakens, euro gold outperforms. The LBMA auction in London also publishes a euro gold price alongside its dollar and sterling prices twice a day, which some contracts use as a reference.

VAT: investment gold versus jewellery

Under the EU VAT Directive (2006/112/EC), a special scheme makes the supply of investment gold exempt from VAT in every member state. The definition is precise:

• Bars and wafers of a weight accepted by the bullion markets and a purity of at least 995 thousandths.
• Coins of at least 900 thousandths purity, minted after 1800, that are or have been legal tender in their country of origin, and normally sold at no more than 80% above the open-market value of their gold content.

The European Commission publishes an annual list of coins that automatically qualify, which includes the Vienna Philharmonic, the Krugerrand, the Maple Leaf, the Britannia and the sovereign. Jewellery, gold below these purities and collectible coins sold at a high premium are taxed at the country's standard VAT rate, for example 19% in Germany or 20% in France and Austria. This is why a gram of gold in a ring costs far more than a gram in a bar even before workmanship.

Germany's one-year rule

In Germany, a gain on the private sale of physical gold is free of income tax if the gold has been held for more than one year. Sales within a year are taxable as private sales, subject to a small annual exemption limit. Other countries treat gains differently: some tax them as capital gains, some apply a flat tax on the sale price or reduce the taxable gain with longer holding. Check the rules where you are resident before selling.

Purities and coins common in Europe

Worked example (illustrative)

Suppose gold is €114 per gram, so one troy ounce is €3,545.80 at parity. A dealer sells a 1 oz bullion coin at a 3% premium; a German jeweller sells an 18K chain for €1,200 including 19% VAT:

If the coin were sold in Germany after more than a year for €4,000, the €347.83 gain would be tax-free under the rule above. All figures are examples, not current prices.

Buying tips

• Compare the dealer's selling price with the parity figure and its buy-back price on the same day.
• Larger bars (100 g, 250 g, 1 kg) have lower premiums per gram than 1 g or 5 g bars.
• Anonymous cash purchases are capped by anti-money-laundering rules in the EU; above the threshold, dealers must identify the buyer.
• Keep invoices to prove the purchase date for tax purposes.