If you’ve ever been to a gold buyer’s site or typed “cash for gold “on your search engine, you’ve probably come across the term “gold spot Price”. This term refers to the price that gold is sold or bought at that specific moment in time. It is different from gold futures contract prices which are for the future delivery of gold. Simply put, the spot price of gold is the price of gold right now. If you are thinking of selling your gold for cash you would do well to keep track of the daily movements of the gold price. And since gold is affected by things like geopolitical issues and general global crises, you should also keep abreast of what is happening in the world as far as politics and the economy is concerned.
The gold price changes a lot. It could fluctuate from one hour to next or day to day. Gold is one of the most popularly traded commodities in the world. It is traded on major markets such as the London’s Bullion Market and on New York’s COMEX. The gold price can also vary in response to shifting demands for gold futures.
Understanding the spot price when selling gold
Businesses that buy small quantities of gold like jewelers pay substantially less than the spot price; this means you won’t get exactly what your gold is worth. There are various factors that influence what gold buyers will offer you for your gold jewellery. First things first, you have to understand that like all businesses gold buyers have expenses and need to make a profit to be successful. Most gold buyers buy used gold jewellery to resell to refineries where it is recycled and they in turn need to make sure that their cost of melting and refining gold jewellery is factored into the price.
The amount of money you will get from selling your gold will never be exactly the same as the spot price for gold. Gold buyers will add fees to make the whole process of buying used gold economical. It should be mentioned that gold buyers are different and as such, they will pay different prices. This is why it is advisable to shop around for a buyer when you are looking to sell. You will get a small amount of money if you have a small quantity of gold jewellery to sell. But you will get more if you have more bullion coins and bars.
Jewellery is mostly made up of 10, 14 and 18 and karat gold. This means that the gold content in jewellery varies from 41.7%, 58.3% and 75%. Remember that the spot price is quoted for the purest form of gold which is 24 this means that the price for your jewellery will be lower than the spot price.
A lot of online gold buyers provide calculators to help you calculate the price of your jewellery on your own. These are usually easy to use. You will be asked to type the weight of your gold and then select the karatage to get the approximate value of your gold jewellery.