What is the Spot Price of Gold?

The price is driven by speculation in the markets, currency values, current events, and many other factors. Gold spot price is used as the basis for most bullion dealers to determine the exact price to trade a specific coin or bar. These prices are calculated in troy ounces and change every couple of seconds during market hours.

Gold as a return on Investment

Gold is a precious metal available for investment in the form of bar, coin, and round form, with a vast number of sizes available for each. Gold bullion is produced by many private and government mint in the USA, Canada, United Kingdom & Switzerland. Collectors and investors who trade gold have the best return on their investments because the spot price of gold has never gone to zero. You can sell your gold coins and bullion for cash online at fair market value to Cash For Any Coins.

Gold bars can range anywhere in size from one gram up to 400 ounces, while most coins are found in one ounce and fractional sizes. Physical gold is regarded by some as a good way to protect themselves against the ongoing devaluation of fiat currencies and from volatile stock markets. Need to sell coins from your IRA?  Whether its home storage or precious metals held with a custodian, Cash For Any Coins has relationships with all the major custodians and can act fast if its time to liquidate or take an RMD Required minimum disbursement.

Frequently Asked Questions about Gold Pricing

When you see the price of gold posted somewhere, such as on a website or a dealer’s page, it will usually be quoted as the spot gold price per troy ounce in U.S. dollars (USD). One can, however, get the value of gold per gram or kilo, as well.

The spot price of gold — or any commodity for that matter — represents the price at which the commodity may be exchanged and delivered upon now. This is in contrast to gold or commodity futures contracts, which specify a price for the commodity for future delivery date.

Gold is a commodity that is traded all over the world, and as such, it trades across many different exchanges, such as Chicago, New York, Zurich, Hong Kong, and London. The COMEX, formerly part of the New York Mercantile Exchange and now part of the CME Group in Chicago, is the key exchange for determining the spot gold price. The spot gold price or fair market value is calculated using data from the front-month futures contract traded on the COMEX. If the front-month contract has little to no volume, then the next delivery month with the most volume will be utilized.

NFusion is our source for up-to-the-minute spot price feed is compiled from the collective data of various reliable sources to ensure our spot prices or fair market value are always as accurate and current as possible.

Gold is a commodity that can have very rapid price changes during periods of high volatility and can also have very little price movement during quiet periods of low volatility. There are many different things that can potentially affect the value of gold. These issues include but are not limited to: supply and demand, currency fluctuations, inflation risks, geopolitical risks, and asset allocations.

Gold is viewed by some as a “safe-haven” asset for it is one of the only assets with virtually no counter-party risks (gold requires no performance by outside entities to retain its value). This is why gold’s value makes a solid return on investment during times of economic instability or geopolitical uncertainty.

Gold can, just like any other commodity, become volatile with rapid price changes and swings. The gold market can also, however, go through extended periods of quiet trading and price activity. Today many financial experts see gold as being in a long-term uptrend and that may potentially be one reason why investors trade gold.

Markets do not usually go straight up or straight down in price, and gold is no exception. While gold can be volatile, gold prices are often no more volatile than the stock market or a particular equity. Large moves have been seen in almost every asset class, and almost all asset classes also exhibit periods in which they simply trade sideways.

Gold is traded all over the globe through all different time zones. In addition, with today’s markets running nearly around the clock, the need for constant price discovery has increased. Gold trades virtually around the clock to allow for banks, financial institutions and retail investors to access the gold market when they choose.

Gold spot prices change every few seconds during market hours and can fluctuate throughout the course of a day based on breaking news, supply and demand, and other macroeconomic factors. The gold spot price is determined by a variety of domestic and foreign exchanges, allowing the gold spot price to consistently update from 6 PM EST to 5:15 PM EST, Sunday to Friday (markets close from 5:15 PM to 6 PM EST each weekday). The changes in gold prices are due to supply/demand, as well as order flow and other factors.

There are several gold bullion coins that have a face value. That is to say that they are considered good, legal tender in their respective country and could be used to make purchases just like cash. The fact is, however, that these coins are not often used to make purchases. They are worth more for their gold content than their face value.

Have you ever seen someone pay for items at the grocery store with a $20 Saint-Gaudens gold coin? Probably not. These coins and others that carry a legal tender status derive their value primarily from their bullion content and collectability or scarcity in the market.

The gold/silver ratio represents the price relationship between gold and silver. Some investors will analyze historical gold/silver ratios to see if the current ratio means gold or silver are under or overpriced relative to each other.

The price of gold often exhibits a negative correlation to stocks. That is to say that yes, gold and equities usually move in opposite directions; however, there are also times gold and stocks may both move in the same direction. Many consider gold to have little correlation to stocks and bonds and therefore feel it can potentially be a wise investment to add to one’s portfolio.

An assay is a certificate or encasing that guarantees the purity and authenticity of the accompanying gold piece. Assays typically include a serial number, which will match the serial number imprinted on the bar. Assays will also include a signature by the official assayer of the piece.

Gold is always measured by the troy ounce, which is equivalent to about 31.103 grams. This standard of measurement was created in France during medieval times and was later adopted by the United States in 1828 for standard coinage. A troy ounce is slightly heavier than a “regular” ounce, which weighs only 28 grams.

There are 32.151 troy ounces in one kilogram of gold.

Gold bullion is available in the form of coins, rounds, and bars. Gold coins are different from the other two options in that they are produced only by government mints and carry a face value in their country of origin. Many countries throughout the world produce their own gold coins containing a wide range of designs and sizes. Gold bars and rounds are produced by private mints and are usually found in a wider selection of sizes than that of coins.

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