Spot gold is available on professional gold marketplaces; it is where traders buy and sell this precious metal at immediate prices which are paid there and then.
When it is referred to it is not to be thought of as a physical location; it should be regarded as a stock market, a virtual market place.
Spot gold is offered under the following guidelines:
- The person buying the gold pays within 48 hours.
- The price paid is stated in US dollars, and is for gold per troy ounce.
- Where units are delivered, they will consist of large, whole 400 ounce bars
- The buyer sends an official bullion courier.
How to Get Spot Gold – The Process
If you’re looking for spot gold then you need to deal with official dealers, rather than dealing directly with the gold owners. The marketplace is ran as a business, you should always be aware of fluctuating prices.
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The process of buying spot gold is a long, drawn out process. You will need to set up accounts, and your identity will need to be checked as well as your credit rating. All of this can mean the process is an expensive one, but for the best prices it is of course necessary.
If you have a business relationship through your bank, more often than not through holding a long standing business bank account, then they may let you trade through them. However they will charge you for this privilege.
If you decide to deal through the bank then you should be absolutely resolute in insisting upon gold allocation. You should take note that the majority of banking institutions do not have a specific bullion vault.
Generally speaking they use other companies to do this for them; more often than not it is likely to be either HSBC or JP Morgan Chase. These two companies are the ones that deal in the wholesale gold market.
Considering Other Options
If you’re considering spot gold, you should be aware that it is not as important today as it has been previously. In fact there are many options available to you that mean you can get extremely close to the spot price of gold.
Websites such as Bullion Vault will help you do this, and it avoids the aforementioned hassle that is associated with it. Additionally you can benefit from being able to purchase gold in small quantities. Many websites that trade on spot prices offer consumer the option to buy it from them.
In short if you want to trade in spot gold then you’ll need to d extensive research not only before hand, but throughout your gold investment journey. The best investors are those that stay informed and are constantly on the look out for tools that will help them find the best prices and analyze price fluctuations.
Additionally it may be worthwhile to speak to a professional to gain insight into the industry, and to hear first hand how the market place works.
photo credit: Calgary Reviews