From Inheritance to Business of Yours, from Masterchef to Big Brother, i gold tokens they are (almost) inextricably associated with game shows and reality television shows. But what is theirs actual value in euros and how much does the competitor who receives them as a prize actually earn? Let’s try to understand it together.
Debut on TV
The use of gold tokens in TV quizzes dates back in the mid-1950s, when in Italy it was forbidden to provide cash winnings for games and competitions, classified by law as “gambling” and permitted only in authorized contexts, such as casinos. This restriction led Rai, state TV and the only broadcaster present on our airwaves at the time, to find legitimate alternatives to reward the winners, thus giving rise to the use of gold tokens as legal payment system and accepted. Even if a 2018 ruling by the Lazio Regional Administrative Court has Cash payment permitted as for Lotto and national lotteries (provided the selection criteria and methods of access to the game are clearly defined), gold tokens remain the most widespread method for winning TV quizzes: a choice mainly linked to tax reasons and logistics.
How the value is calculated
The gold tokens are coins in all respects, with a variable weight and the brand of the company that commissions them imprinted on both sides. The total value of the gold coins given to the winner corresponds approximately to the prize money won, but it is important to note that the television network immediately retains the 22% VAT on the winnings. Therefore, if the prize up for grabs is 100 thousand euros, the winner will receive tokens worth approximately 82 thousand euros. An additional amount will also be deducted when converting gold tokens into euros.
Determining the value of individual tokens can therefore be complicated. Their price may vary depending on market conditions, their specific weight and taxes applied. To calculate the actual amount, you need to consider several factors, such as equivalent value of the gold token in euros and the taxes on winnings applied in these cases. Despite this, many premiums continue to be paid with this system rather than in euros, to disadvantage of competitorssince the value of a gold token is lower than it would be if paid in cash.
Payment methods and what to know in case of sale
After winning a prize, the entrant waits 3 to 6 months before receiving payment, during which time VAT is withheld. On the date of payment, the winner is contacted by the Metal Bank, who minted the tokens and who communicates the number of coins that will be sent. The winner is then offered to sell directly the gold chips at the Dealer itself with a additional withholding of 5%, or receive them at home to sell them personally to the Bank of Italy or to authorized jewelers. By choosing the second option, you must consider that the Gold’s value varies over time, so it is advisable to sell the tokens when the price is higher, considering that the tokens are made of 18 karat gold (i.e. with 750 parts of gold in 1,000) and weigh between 8 and 10 grams each. Television winnings are then subject to taxation according to the Consolidated Income Tax Act, with rates that vary based on the nature of the winnings. For example, a withholding tax of 20% applies to television game prizes.
It is important to know that the total value of the gold tokens won it is always lower compared to the prize pool in euros. The value of gold fluctuates over time (in this period its prices are rising and at the time of writing it is worth 68.35 euros per gram) and therefore it is necessary to keep an eye on the current situation.
Assuming, for example, that each single piece weighs 10 grams and the cost of gold is 30 euros per gram, the token will be worth 300 euros, whereas if the yellow metal is worth 60 euros per gram, it could even reach 600.
