Investors are always look for the best price on gold coins and bars, preferably at spot. Understandably, everyone wants to pay the lowest price possible when buying precious metals. The lower the price, the higher the potential return on your investment. There are a variety of online dealers that offer gold at spot price deals to new customers.
Where To Buy Gold at Spot Price?
Besides buying a paper contract of 100 ounces for future delivery, the opportunity to buy gold at spot price for immediate delivery does exist. Several online bullion dealers offer gold bars at spot price deals as a special offer for new customers. This is intended as a loss leader for the bullion dealers to acquire new customers.
There are other ways to buy gold at close to the spot price. The most popular method is to combine various discounts, cash backs and rebates, such as those offered by Costco with their Executive Rewards, combined with the cash back rebates offered their branded credit card. Some investors have had great success in premiums including some that allow you to buy gold below the spot price after factoring in various discounts, cashback, and rebates.
Dealer Premiums on Gold Bars and Coins
Expecting to buy a bullion coin or bar at the spot price is like expecting to buy a car for the cost of the raw materials. Other factors impact the price of the finished product. This include the labor along the supply chain, the cost of transporting raw materials, refining and created finished products.
The spot price is a reflection of the paper markets, and represents the minimum cost if a contract were to be converted for physical delivery of 100 ounces of gold at a future date.
How are spot prices used?
Dealers use the spot price to guide how investment-grade bullion items are priced. Due to factors mentioned earlier, bullion bars usually sell for varying percentages over the spot price. Additionally, other factors such as minting fees, and higher government costs lead to higher premiums on some products.
What is Gold Spot Price?
The gold spot price is the current commodities market price at which gold is bought or sold for immediate payment and delivery. It is what you would pay “on the spot” instead of some date in the future. In theory, you could pay spot or even below spot if you were to buy raw gold before it was minted into a bar or coin.
The spot price can be driven by a host of factors, such as market speculation, demand for bullion, fluctuations in futures (paper contracts), currency values, current events, and mining.
Spot prices are updated every minute six days a week, as long as one of the world’s markets is open. New York, Chicago, London, Zurich, China, and Hong Kong are the most influential global markets.
Choosing Gold Bullion Types
With such a large variety of gold bullion bars, coins and rounds available, deciding which will help you reach your investment or store of wealth goals can be confusing.
Today’s market is flooded with bullion coins from sovereign governments, and gold bars and rounds from private mints. Vintage gold bullion coins circulating from a time when economies were based on the gold standard are also flooding the market.
Two very important factors to consider include how long you intend to keep your gold bullion investment and your intended buyer when you decide to sell.
If transferring cash holdings into another form of legal tender, or investing in a Gold IRA, buying American Gold Eagle, Canadian Gold Maple Leaf, or Britannia Gold Coins may be the most practical for you.
Plenty of other vintage gold bullion coin options can be found and lower premiums and are as liquid and recognized and modern bullion. These vintage issues include U.S. Mint Pre-1933 Gold Coins, British Gold Sovereigns, LMU 20 Franc Coins, and Gold Peso coins from Mexico.
Compare Gold Bullion Prices
Each dealer prices its bullion products based on its individual business model. Accordingly, the premiums for the same product can vary dramatically between dealers.
Almost every online dealer will carries the same core set of products such as American Eagles, Maple Leafs, Krugerrands, and other sovereign government bullion. You can use FindBullionPrices.com to find the best prices on the gold bullion items you want to buy.