What’s the Spot Price?
This precious metal’s spot price is used to determine the current rate of a troy-ounce of gold. The market speculation, currency values and other factors drive the price. Most bullion dealers use the gold spot price as the basis to determine the price they will charge for a particular coin or bar. These prices are in troy ounces, and they change every few seconds during market hours.
Where to Buy Gold at a Near-Spot Price
You can invest in bullion or paper certificates. Many private and public mints around the world produce physical gold bullion. You can find this option in bars, coins, and rounds. There are many sizes.
While gold bars can be as small as one gram to 400 ounces in size, most coins are only one ounce or fractional. Physical gold, like other precious metals is considered a good way for investors to safeguard themselves from the constant devaluation and volatility of stock markets.
Another way to invest is by buying gold certificates. A certificate of gold is a piece that certifies that you have a certain amount of gold at an off-site storage location. This is different than owning bullion outright and unencumbered because you never take physical ownership. Some investors love the convenience of purchasing paper gold. Others prefer to hold and see their precious metals in person.
FAQs
What exactly is the gold pricing quote?
The spot price for gold will be displayed on websites or dealer’s pages. It is usually quoted in U.S. Dollars (USD) per troy ounce. However, it is possible to get the gold price per gram or kilogram.
What is the “spot price?”?
Spot price for gold or any other commodity is the price at which the commodity can be exchanged and delivered. This is different from commodity futures contracts or gold, which indicate a price for the commodity’s future delivery date.
How is spot price determination made for precious metals?
Gold is a commodity that can be traded around the globe. It trades on many exchanges including Chicago, New York and Zurich. The COMEX is the main exchange that determines the spot price of gold. It was previously part of New York Mercantile Exchange. The COMEX’s front-month futures contracts are used to calculate the spot gold price. If the front-month futures contract has very little or no volume, the next delivery month will be used.
In which currency is spot pricing quoted?
The U.S. dollar (USD) is the currency used to trade gold and it is quoted in USD. The spot price of gold is converted to local currency in areas other than the United States.
Why cannot I buy at the spot price or below?
The spot price of gold is the current price of an ounce (or more) of.999 fine or pure gold. The spot price does NOT include dealer, distributor or minting company markups. The majority of our inventory comes directly from the mint. These products are priced at spot plus a markup to allow the maker or mint to make a profit.
To stay in business, the dealer must also make a profit. To cover costs and to make a profit, the dealer will mark up the products at a higher price than they paid for them. Dealers will usually buy from individuals below the spot price of gold and sell at the spot price. The dealer’s gross profit is the difference between their sell and buy prices. This means that you can get gold at spot prices, but you can still buy it with Wall Street Metals.