Tool lesson

Fair Value Tracker: Read Basis Without Calling It Profit

A practical Fair Value Tracker lesson for reading basis as the gap between observed local price and model value, separating global basis, import basis, gross basis, net basis, and percent scale.

12 minBeginner5 chapters

Educational only

The examples teach workflow and risk framing. They do not provide trade recommendations, personalized advice, leverage guidance, or guaranteed outcomes.

Chapter 01

Choose the model before reading the gap

Trader question

Am I reading global basis or import basis?

Basis is observed local value minus a chosen model value. Global basis compares against fair global before landed costs, while import basis compares against fair import after the selected cost profile.

Desk checklist

Name the observed local value.
Name the model value.
Say whether the comparison is global or import basis.

Interactive proof

Overview metrics, global basis, import basis, and model labels

Switch between global basis and import basis in the ledger and name which question changed.

1Global basisObserved local minus fair globalThis reads the gap before landed-cost assumptions are applied.

2Import basisObserved local minus fair importThis keeps the selected landed-cost profile attached to the comparison.

3Gross vs netCost drag mattersA gross gap can shrink, flip, or become too assumption-sensitive after costs.

4Basis percentScale-adjusted contextPercent basis helps compare gaps across price levels and contract contexts.

5Language gateNo profit labelsBasis is a model deviation to investigate, not a captured-profit statement.

If costs matter, quote the basis field that keeps costs attached. Then add freshness, contract, liquidity, and event caveats before the read leaves the desk.

Interactive desk lab

Basis Ledger Without Profit Labels

A practical Fair Value Tracker ledger for separating global basis, import basis, gross gap, cost drag, net basis, and basis percent without turning the gap into a profit claim.

Native scroll

44s Remotion sceneGlobalVersusImportBasisVideo

Two basis fields, two questions

Global basis and import basis appear side by side so the learner sees which model value each gap is measured against.

Storyboard beats4 cues

Observed local price appears at the top.

Fair global lands as the first comparison rail.

Fair import lands as the second comparison rail.

The lesson asks which question the trader is answering.

Remotion code

GlobalVersusImportBasisVideo

The snippet is stored with the lesson so a future Remotion project can render the chapter video.

Show component snippet

import {AbsoluteFill, Easing, Sequence, interpolate, useCurrentFrame} from "remotion";

export const GlobalVersusImportBasisVideo = () => {
  const frame = useCurrentFrame();
  const globalWidth = interpolate(frame, [26, 82], [0, 560], {
    extrapolateRight: "clamp",
    easing: Easing.bezier(0.16, 1, 0.3, 1),
  });
  const importWidth = interpolate(frame, [52, 112], [0, 660], {
    extrapolateRight: "clamp",
    easing: Easing.bezier(0.16, 1, 0.3, 1),
  });

  return (
    <AbsoluteFill style={{background: "#fff8e8", color: "#071126", padding: 72}}>
      <h1>Basis depends on the model value.</h1>
      <div style={{marginTop: 52, padding: 18, border: "1px solid #aa8432"}}>Observed local price</div>
      <Sequence from={28} layout="none"><div style={{marginTop: 28, height: 16, width: globalWidth, background: "#2454a6"}} /></Sequence>
      <Sequence from={54} layout="none"><div style={{marginTop: 24, height: 16, width: importWidth, background: "#047857"}} /></Sequence>
      <Sequence from={106} layout="none"><p style={{color: "#805407"}}>Global basis and import basis answer different questions.</p></Sequence>
    </AbsoluteFill>
  );
};

Sources used for this tutorial

local Premium/Discount MethodologyWorld Gold CouncilUsed to frame basis as the difference between observed local and model value, with landed-price assumptions attached.Local Gold Price Premium/DiscountWorld Gold CouncilUsed to keep premium/discount and basis language indicative rather than execution-ready.Gold Contract Specificationlocal marketUsed for domestic contract and quote context before reading local basis.Gold Futures Contract SpecificationsCME GroupUsed for global futures context before comparing local values with global model values.Do's and Don'ts of Investing in Securities Marketinvestor educationUsed to keep basis interpretation educational and away from tip-like decisions.

Next step

Open the tool with the checklist beside you.

Move from the lesson into the matching Bullion Brains tool, keep the checklist visible, and treat the output as evidence until the caveats are clear.

Open Fair Value Tracker