To set the base buying price for one grain of gold, they use a formula that factors in the current market price (spot price) of gold. They adjust this price slightly (by 1%) and add a small fixed amount to account for additional costs. The final price is determined by selecting the higher value from two specific calculations:
1: The adjusted spot price per grain of gold is divided by 60%, reflecting both the intrinsic value of the gold and their premium.
2: A larger fixed amount (3.85) is added to the adjusted spot price per grain.
The resulting figure becomes the base buying price, where 60% covers the actual value of the gold and 40% covers the premium. This premium compensates them for facilitating the physical trading of gold and offering investment access through their platform.
Hope that helps.