Buy Gold Below Spot Price

Note in this long term gold price chart, the US dollar gold price per troy ounce started moving exponentially right after the 1971 Nixon Shock which severed the final underlying ties between gold bullion and now every government currency in circulation including the fully fiat US dollar.

buy gold below spot price

When you buy gold coins or bars from licensed dealers, you have to buy it at a little above spot price (currently set at $1,192.42 for one troy ounce of gold). However, when you sell it, you usually have to sell it below spot price.

The gold spot price is the prevailing price for an ounce of .999 fine gold that is deliverable right now. The spot price does not take into account dealer or distributor markups or markups by the minting or manufacturing company. Most of our inventory is purchased directly from the mint; those products are priced at the spot price plus a markup for the mint or maker to turn a profit.

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 price of gold. These issues include but are not limited to: supply and demand, currency fluctuations, inflation risks, geopolitical risks, and asset allocations.

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 are buying 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 products, especially gold coins, are priced based on gold content and their collectability. The gold content is pretty straightforward. The collectability premium, however, is another animal. Gold coins with the same gold content may have wildly different market values based on such things as when or where they were minted, how many coins of that particular type were minted, what condition the coin is in, and more.

Just because a dealer is selling that coin for hundreds over the spot price does not necessarily mean that the dealer is making hundreds of dollars on the coin. The dealer likely paid several hundred dollars over the gold spot price for the coin, as well, and is now looking to sell it with his or her profit margin attached.

Dealers have procedures for locking in a specific price on gold products based on current price levels. These procedures may vary from dealer to dealer. If one is looking to buy gold and lock in a price, one method is for the buyer to lock that price in once he or she reaches their checkout page when making an online purchase.

But all conventional bullion bars, rounds and coins are sold above spot. This is because the government or private mint that strikes them, along with the distributing wholesale dealer, needs a profit margin and the only way to get that margin is by charging a price that is higher than spot. It might be a small profit margin - often between 2% and 5% for a 1 troy ounce piece - but it is a positive number nonetheless.

Sure, you might occasionally find gold jewelry scrap sold below spot. But scrap jewelry isn't an ideal form of gold to hold because it isn't widely recognized or accepted. This is because the gold content can be difficult to verify. In addition, a refinery charge must be taken into account if you ever want to process the scrap into a usable form.

But I'm not talking about buying scrap gold jewelry here. I'm talking about buying a legitimate gold coin with a known weight and fineness struck by a well-respected government. Buying gold coins below spot is far superior compared to stocking up on junk jewelry.

But I have another trick to get these coins even cheaper. EBay allows its users to supercharge their bullion purchases through the use of its eBay Bucks program. EBay bucks rebates normally accrue on eligible purchases at the rate of 1%. But if you wait for a promotional period, it is fairly common to get special bonuses of 10%. You can then combine this with a cash-back credit card rewards program to enhance your leverage in acquiring gold below spot.

But the best thing about common-date pre-1933 U.S. gold coins is their price. These unique mementos of Americana can be found on eBay in circulated XF to AU condition at 3% to 8% below the spot price of gold (once incentives are factored in).

For example, I spotted a random-date $20 Liberty Head in AU condition (which contains 0.9675 troy ounces of pure gold) for 4.3% over spot. After accounting for eBay Bucks and credit card rewards, you could buy this coin for -3.6% under spot.

If you don't have the $1,500 to splurge on a gigantic double eagle gold coin, you could always get yourself an XF $5 Liberty Head half eagle (containing 0.2419 troy ounces of gold) for around $400. This coin sells for 7.0% over spot without eBay Bucks and -4.8% with them (at the time of writing).

But the best deal I found in pre-1933 U.S. gold coins is a $10 Liberty Head coin (with 0.4838 troy ounces of fine gold) in AU condition for 4.2% over spot before eBay Bucks and -7.3% under spot with them.

Right now you can get yourself a random date BU sovereign from the reign of Queen Elizabeth II for only 3.5% above spot before incentives and -7.9% below spot after eBay Bucks and credit card rewards. This nearly 8% discount to spot means that you are buying each ounce of gold for about $118 less than the going spot price of gold when it is trading at $1,500. Now that is a bargain!

Also keep in mind that these gold coin deals are so good that they regularly sell out. That's why I don't link to the specific coins I've found, because I know that by the time I post this article they will all be gone. But there will be other deals of the same type that will be just as good, provided you exercise a little patience. And anything that allows you to buy gold below spot is worth the wait in my book.

Try to sell it for $1 over spot and it is crickets on the BST. If selling at or below spot here yields more than going to the local shop (which it does) then why not? "Pigs get fat, hogs get slaughtered".

What's next? Only list coins for sale at full Coinfacts prices? Yeah, that will keep the market propped up.....Sorry, but if dealers are paying well below spot (assuming they are even buying), and someone wants to move something, I think they may price it anyway they wish. If "a little under spot" gets a bite, why not?

The BST is a worthless unless your pricing stuff at a deal or extremely fair. And frankly lots (not all ) of the big firms are backing up the prices a little below spot and even more so as the price goes higher and higher. Cost of shipping is a factor as well.

Spot as commonly used here is the price per ounce; melt is the number of ounces/amount of gold or silver in the bar or coin.Today silver is at $17.16 so that makes melt value or silver content of a Morgan dollar $13.27.

The melt value of a Morgan based on spot price of $17.16 per ounce is $13.27. Melt is the amount of silver in question or in the deal. A 5 ounce bar would have a melt value of $85.80. Obviously it's determined from spot times weight.

What determines the PHYSICAL prices is demand and on which side it is.Higher "spot" brings out sellers.Lots of sellers will drop prices on bullion COINS. There's simply no market for the wholesalers to sell to. Bullion begins going to refiners to be sold to commercial USERS of the metal.

Just be patient as if the spot price continues to rise you will get that Jackie at spot, along with a lot of other stuff that will melt. She is one of the few exceptions to a grossly unattractive and largely current spot pricing only series.

Gold futures are a good way to speculate on the price of gold rising (or falling), and you could even take physical delivery of gold, if you wanted, though physical delivery is not what motivates speculators.

Risks: ETFs give you exposure to the price of gold, so if it rises or falls, the fund should perform similarly, again minus the cost of the fund itself. Like stocks, gold can be volatile sometimes, but these ETFs allow you to avoid the biggest risks of owning the physical commodity: protecting your gold and obtaining full value for your holdings.

Contango can be caused by several factors, including inflation expectations, expected future supply disruptions, and the carrying costs of the commodity in question. Some investors will seek to profit from contango by exploiting arbitrage opportunities between the futures and spot prices.

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This page displays charts of the current price of gold, otherwise known as the spot gold price. The spot gold price refers to the price at which gold may be bought and sold right now, as opposed to a date in the future. The spot price for gold is in a constant state of flux, and can be driven by many different factors. The spot gold price can refer to the current price of gold per ounce, gram or kilo. Typically, however, spot gold is quoted in price per ounce using U.S. Dollars. Quotes are also available depicting the spot gold price in other currencies as well. Spot gold price charts can be useful for identifying trends in the gold market, or for looking for areas of support and resistance to buy or sell at. Charts can be viewed using multiple timeframes depending on your objectives. A long-term gold investor will likely be most concerned with weekly, monthly and yearly charts while a short-term hedger may be more concerned with daily, hourly or even 5 minute charts. 041b061a72