Gold Spot Price Explanation

What is the spot price?
The spot price of this precious metal is the most common basis for measuring the current price of a troy ounce of gold. Prices are determined by market speculation, currency values, current events, and many other factors. Gold spot prices are used by most gold bullion dealers to determine the exact price they charge for a particular coin or bar. These prices are calculated in troy ounces and change every few seconds during market hours. How to buy gold at the spot price

Available for investment in the form of bullion and paper certificates. Physical gold bullion is produced at many private and government mints in the United States and around the world. This option is most commonly found in bar, coin, and round shapes, with a wide range of sizes available for each variation.

Gold bars can be any size, from 1 gram to 400 ounces, but most coins are available in 1 ounce and fractional sizes. Like other precious metals, some believe that physical gold is a good way to protect against the continued devaluation of fiat currencies and volatile stock markets. Purchasing gold certificates is another way to invest in metals. A gold certificate is basically a piece of paper that says you own a certain amount of gold, and it is stored at an off-site location. This differs from full and unfettered ownership of gold bullion, as you don't actually own the gold. While some investors are happy with the ease of purchasing paper gold, others prefer to see and hold the precious metal firsthand.
FAQ

What exactly does the price of gold indicate? When gold prices are published, such as on websites or dealer pages, they are usually quoted as the spot price of gold in United States dollars (USD) per troy ounce. However, you can also determine the price of gold per gram or kilo.

What does "spot price" mean?
The spot price of gold (or any other commodity) represents the price at which that commodity can currently be exchanged and delivered. This is in contrast to gold or commodity futures contracts, which lock in the price of the commodity at a future delivery date. How are spot prices for precious metals determined?
Gold is a globally traded commodity, so it is traded on various exchanges such as Chicago, New York, Zurich, Hong Kong, and London. The COMEX, formerly part of the New York Mercantile Exchange and now part of Chicago's CME Group, is the primary exchange for determining spot gold prices. Gold spot prices are calculated using data from last month's futures contracts traded on COMEX. If the previous month's contract has low or no volume, the delivery month following the highest volume will be used. In what currency are spot prices displayed?

Gold is traded in US dollars (USD), so it is quoted in USD. Outside the United States, spot gold prices are determined in US dollars and easily converted to local currencies. Why can't I buy below the spot price?

The gold spot price is the current price for one ounce of fine-scale 0.999 gold that is currently available for delivery. Spot prices do not take into account dealer/distributor markups or mint/manufacturer markups. The majority of our inventory is purchased directly from the mint. These products are priced at the spot price plus a markup so that the mint and manufacturer can make a profit.

Retailers also have to make a profit to stay in business. The retailer takes the purchase price and adds more product to cover retail costs and profit margins. For this reason, traders typically buy from individuals below the gold spot price and sell above the gold spot price. The bid-ask spread represents the trader's gross profit, which means that although gold is not available at the spot price, this metal can be purchased from Wall Street Metals at the spot price.

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