As the name indicates, spot price is the fee of any item that is to be paid immediately on purchase. Similar is the case for gold spot price i.e. the amount that you pay in order to get a particular quantity of gold. It is also sometimes carried out one or two days before the actual trade takes place, but in normal cases this period never exceeds this limit. In simple words, gold spot price is the price at which the market is buying and selling gold.
Gold items are one of the most expensive articles; hey are precious gifts for a woman, and a man can give gold jewellery to his lady. Buying gold is nothing less than a technical task due to its high price which is also quite volatile. The price changes rapidly according to the situation of the market and a country’s economy.
Gold spot price is the twice a day setting of the value of gold against the British Pound as a commodity by the five members of the London gold pool. This rate is then converted into US dollars while Euros is used as a benchmark for the pricing of gold, its worldwide derivatives and products.
The spot price of gold is set in terms of British pounds, per ounce of the precious metal, by the London Gold Market Fixing Limited in a secure teleconference at 10:30 a.m. and 3:00 p.m. London time on each trading day. Physical gold can be purchased at the spot price from a variety of sellers that will deliver bullion to you or sell you gold that they possess in their vaults. Makers of gold coins and other similar products usually sell their wares above the spot price without verifying the purity of their items.
There are various tricks through which you can buy gold by paying not a penny more than the spot price. The first of these tricks is to make comparisons. Compare the gold prices that companies offer with the current gold spot price. Make a purchase over the phone or through a secure online order form. Find out the details of delivery if you are purchasing physical gold or request a written record of the transaction if you are buying a share of gold in a vault.
Another very useful trick is to use common sense and avoid sellers of gold coins along with other such items if you are looking to purchase this precious metal at the spot price. Coins are often not verified in terms of purity, so you may be paying far more for them than the actual gold content it contains.
Finally, find out how quickly you can execute an order to sell your gold if you are buying gold from a company that sells ownership of it in their vaults. You could lose a substantial amount of money on price movements if the dealer delays buying back the gold that you have purchased.
Source by Jack Wogan
The Gold Spot Price Explained
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