Gold Equivalent

A term used to describe another asset priced at “market price” for its main production
For example, if a gold producing mining company also produces silver, it can be calculated as follows:-

Market price for gold         US$400 per ounce
Market price for silver        US$   7 per ounce

If the mining company produces 10,000 ounces of silver, this would have a value of US$70,000.
Therefore, the silver could be used as a credit for US$70,000 worth of gold, which equates to
175 ounces of gold:-

175 x US$400 = gold equivalent US$70,000

In mining company reports or refinery agreements, production of silver (and sometimes other metals) is converted into the equivalent ounces of gold using the current ratio of silver-gold prices.

For example, with silver at $5 per ounce and gold at $280 per ounce, 70,000 ounces of silver would be credited as 1,250 ounces of gold.