Find out what your scrap gold is worth. In fact, determining the spot price of gold is the basis of the price of one troy ounce of gold. It’s the price of the exact time for gold on international exchanges.
Ask Price versus Spot Price
The spot price is often referred to as the bid price. Spot, or bid price, is not the “asking” price. However, it can be confusing with the usage of the term, “ask price.” Ask price is the price that sellers are seeking at the exact moment. Spot usually refers to the “bid” price you see listed. As a result, this is the price most recently quoted in the market that buyers are willing to purchase at. This is usually lower than the “ask” price sellers are currently seeking.
Defining Spot Price
Spot price is quoted in US dollars. In addition, we determine the spot price by the trading activity in future markets. Spot price is set through COMEX as the primary exchange in the US. Spot price continues to fluctuate constantly as trading continues around the world, and around the clock. Large exchanges, for example in New York, London, and Shanghai, exist in different time zones. A “fix” price is set for gold. This is to give the fluctuation a bit of a slow down. In addition, the London Bullion Market Association (LBMA) determines this. This fixed price is a benchmark for producers, institutions, and big market participants.
Retail customers cannot buy or sell on fixed prices. So for you and me, it is the spot price only for gold sale and purchase. If you want to purchase gold at spot price, you also have to pay an additional premium price. The spot price is for “unfabricated” metal, also involving their costs to form gold into a bar, coin, or necklace. The premium is a refiner’s manufacturing gold cost or a dealer’s income.
Diving Deeper into the Spot Price of Gold
In order to get a good spot price, you must look into the factors that make the spot price of gold move up or down. The minute-by-minute changes in a spot price are due to the ordinary purchasing and liquidation activity. The factors that act as catalysts for change in the gold prices are the US dollar, inflation, interest rate, stock market, the central bank, interest rates, crisis, and commodities. The US dollar inversely relates to gold. When the dollar rises, gold falls. For making a stable prediction about gold spot prices, you can keep track of the current gold price and watch daily movements. The historical prices with an interactive chart are available on the internet. This can help in knowing how the gold rate is moving in relation to other assets.
Here at Gold Cash Buyers, we guarantee fair market appraisals with a top-dollar offer in as little as 24 hours. Interested in learning more about the spot price of gold or our gold cash buyers? Don’t hesitate to give us a call at our toll-free number 1-877-857-6227 if you have any additional questions.