Gold Spot Price: Understanding How It Works

Getting into precious metal investing is daunting for many outsiders. There are many terms that can complicate things, and beginners let these things scare them away from making solid financial decisions. One of the things we notice new investors struggling with the most is understanding the spot price of gold.

However, you don’t have to let that stop you any longer. In this article, we’ll cover the basics of the gold spot price so you can invest confidently. Not only will we cover the definition of a spot price, but we will also discover what factors can influence the value of gold. Finally, we’ll go over everything you need to know about checking the current spot price so you can buy and sell gold coins and bullion. Keep reading to learn more.

What Is Gold Spot Price?

When you enter the world of precious metal investments, you’re sure to hear many people asking, “what is the spot price of gold?” These investors are discussing the current price that a given asset can be bought or sold for immediate delivery in the marketplace. Spot prices can be used for various assets, including securities, commodities, and currencies.

Since gold is a raw material used to produce manufactured goods, it falls under the commodity category. Therefore, investors and traders will often want to see the current price when they buy and sell. It’s very similar to the concept of the stock market. The prices are continually fluctuating throughout the day.

What Impacts Gold and Silver Spot Prices?

Now that you know more about the definition of a gold and silver spot price, you might wonder why there is so much fluctuation from minute to minute and day to day. The fact is that there are many reasons the price can fluctuate. At a basic level, the spot price of gold is impacted by two things: supply and demand. However, many more specific factors can increase the supply or decrease the demand.

For example, supply can quickly increase when a new mine is opened. The result is an increase in the supply. This means that the price will drop. If a mine closes or an economic crisis causes demand to increase, you’ll see the price rise on the spot price of gold chart.

Those aren’t the only things that can impact the value of gold, however. The spot price can also be influenced by:

Uncertainty
Changes in Currencies
Industrial Use
Inflation
And Other Similar Global Events

How to Check the Spot Price of Gold and Silver

If the price of gold changes so often, then how can you possibly keep track of it? How will you know the live gold and silver spot price when you decide to buy or sell? The answer is a lot simpler than you might think. Many gold and silver marketplaces have a live chart that shows the gold and silver prices today, and since gold is always priced in US dollars—even in other countries—you can rest assured that the spot price is always the same everywhere.

When you utilize the charts, you can start to recognize trends. In fact, marketplaces make it easy for you to track the changes that have occurred over a specific period of time. You can look at prices over the last month, year, or decade.

According to the live charts at the time this article was written, the spot price of gold was:

$1929.00 per ounce
$62.02 per gram
$62,017.35 per kilo

Experts have assessed the charts and current economic circumstances to predict future prices. They currently anticipate that the price will continue to rise over the next decade until it hits $5,000 per ounce in 2033.

How to Buy and Sell Gold at Spot Price

After you find out, what is the spot price of gold and silver, you’ll be able to start investing. The process is not as complicated as many people think. Online dealers make it easier than ever to buy gold at spot price. The first step to trading your gold is choosing a trusted dealer.

To choose your ideal dealer, you’ll want to compare their added costs. For example, you’ll want to consider the cost of shipping and insurance since you’ll be buying and selling the physical pieces of gold.

Once you’ve determined the dealer, you’ll need to look at their inventory to see what they have available. If they don’t have a piece you’re interested in, you may be able to work with them to find it. Otherwise, you can shop from their bars, bullion, and coins.

Trading at Spot Price vs. Long-Term Investments

Like the day traders are working the stock market, you can make short-term investments with gold. These typically work with large volumes of gold, and the trading cycle is set for a brief time. In these cases, you’ll want to pay close attention to the spot price and any seemingly minor events that could cause a slight increase or decrease.

For the average person, buying physical gold is more of a long-term investment. You’ll want to hold onto the gold for years to see a payoff as the price gradually climbs higher. These long-term investments can also be great hedges against future inflation.

Learn More About the Gold Spot Price Today

Do you want to know more about the gold bullion spot price? Are you interested in finding out how you can invest in gold online? If you answered yes to either question, you’ve come to the right place. At International Precious Metals, we are always ready and available to help you with your gold investment questions.

Our helpful service representatives are happy to provide you with more information on the gold coin spot price or the process of investing in precious metals. You can get in touch by calling us at our toll-free number. We are available 24 hours a day, seven days a week. Our online chat form is another convenient option, so what’s stopping you from reaching out today?

If you’re interested in reading more about rare US coins, check out some of our other great posts including, ‘Investing in Gold Coins vs Bars’, ‘Is it Safe to Buy Silver Online' and ‘Silver Spot Price’.