Gold Spot Price

Written by Kathleen Gagne
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Whether you are buying gold outright or speculating on gold futures, you will have to become very familiar with the term "gold spot price." Simply put, gold spot price refers to the current going rate on the gold market--what you would pay if you were buying gold for cash and at the point of sale. If you enter "gold spot price" on your web search engine, you will see numerous sites that have up-to-the-minute gold spot price graphs for you to study.

Studying trends in the gold spot price can give you valuable insights into short and long-term movement. If you have already studied the stock market, you will see some similarities in how the gold market works, but there are some differences. For example, the gold market is active 24 hours a day.

When the Gold Spot Price Is Important

The gold spot price is particularly important to you as an investor if you want to make immediate purchases versus buying futures or options on futures. Over the course of a week, you might see that the price of gold has dropped each day around two in the afternoon. This could be due to world events or some other news that has affected the market. You may want to watch the market for a couple of days to see if the afternoon is a good time to buy.

Remember that the gold spot price is the cash price for the immediate sale of gold. This refers to all gold on the market, whether you are buying gold coins, gold bars, or gold bullion. When buying gold coins, you should be aware that there is a difference between the actual spot value of a coin's content and the market value of the coin. This difference is called the premium and is an added value based on the expense of minting and distributing the coin.


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