Gold Spot Price Explained

If you are a gold investor, you may be familiar with many of the terms. However, most people may not understand what the gold spot price is. It does have something to do with pricing, but it is not necessarily the price of gold itself.

Gold Spot Price

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Explaining the spot price

With most items, the spot price is the amount that is paid right away for any product. For gold, it is the monetary amount paid for a specific amount of gold. Spot prices change throughout the day. Most websites have spot pricing charts that you can view in order to see what the bid is. Depending on the location, the window for the spot price may be between specific hours such as 8 a.m. to 3 p.m. Once the market has closed, that is the final spot price of that day.

Spot price ranges

Because gold relies on the status of supply and demand, the spot prices can change dramatically within a day. For instance, say the U.S. Spot Gold price began at $1695.00 for a regular morning. By 5:00 p.m., which is the close of market bids, the spot price rose to $1734.50. You can see how it increased by $39 dollars within an eight hour period. These numbers and values will differ with each country.

Making smart purchases

If you are starting to invest in gold, you don’t want to rush into purchasing whichever price comes first. The best thing to do is to compare the prices of gold from various companies. Additionally, you can look at purchasing gold from a dealer or from an exchange. It is important to note that exchange prices tend to be higher for a small amount of gold.

Learning about gold trading and how to invest in gold are other options you have before making any major purchases. This information can help you see pitfalls and investment dangers.