Gold sellers need to make a reasonable profit from the gold you’re buying. When you’re buying gold at the spot price, you’re buying it at the price it’s currently going for on the major markets. It’s not necessarily impossible to buy gold at the spot price, but it can be difficult to do so. We go over the basics of buying gold at its going rate below. Whether they’re looking to sell gold coins or buy gold bars, Carlsbad precious metals collectors should keep this information in mind.
What Spot Price Is & Why It Matters
Gold’s spot price is simply the amount someone will pay when an immediate gold purchase is made. It’s typically listed in U.S. dollars, and the weight of the gold is measured in troy ounces—referring to just over 31 grams in weight. Spot prices don’t usually use the words “troy ounces,” since this is implied.
Accounting for Other Costs
The spot price only accounts for what’s currently going on with the major gold and precious metals markets at any given moment. It doesn’t take into account fees for such things as shipping and handling, transportation, and delivery. Spot price also doesn’t account for numismatic value, which refers to unique qualities in design and what might appeal to collectors of certain forms of gold, nor does it account for rarity or any applicable taxes.
Why Spot Pricing Is Used
You may be wondering why there’s a spot price for gold if it doesn’t account for the factors mentioned above. Manufacturers and gold sellers use it as a guide for pricing. It’s similar to the way some stores use a manufacturer’s suggested retail price as a guide. It’s useful, but it’s not something to go by entirely if you have plans to purchase gold.
Why It’s Unlikely You’ll Find Gold for Spot Price Only
Technically, you could buy a home for only the cost of building it. Realistically, this isn’t going to happen, since there are other cost factors to consider, such as those we mentioned above with gold. You’ll more likely be able to purchase gold bars or coins for as close to spot price as possible, but not for spot price only.
Becoming a Well-Informed Gold Buyer
Take time to be aware of the spot price of gold and what’s going on with gold pricing trends. This way, you’ll know whether or not you’re getting a good deal. You’ll also have a better idea of what a particular seller’s markup is before you make an actual purchase.
Also, make an effort to purchase your gold from trusted sources, such as reputable precious metals dealers. Doing so ensures you’ll get up-front pricing information and related details. It can also be helpful to compare prices among sellers before you buy so you can get a better feel for what’s a good deal at the moment. With rare gold, do some research into the particular piece you’re interested in to get an idea of why it’s rare and why a seller may be asking for an amount that’s far above the spot price for gold.
When they’re looking to buy gold, Carlsbad residents should work with trustworthy precious metal dealers who offer high-quality service and have years of experience. Call on the industry-leading professionals at First National Bullion when you’re ready to invest in gold bullion, coins, or bars. Give us a call today at (760) 253-8072.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.