Gold spot price as an advantage for some investors
The gold spot price updates twice a day and is the price for gold traded on the spot market. London Gold Fixing is the gold spot price established by five representatives of bullion-trading firms. Also the gold spot price is determined by the basic economic law of supply and demand. If the demand for gold is higher than the supply, the gold spot price will increase, more people want that commodity than the ones that are disposed to sell it, and vice versa.
Another thing about the gold spot price is that when two professional bullion market individuals close a transaction and one of them quotes the gold spot price that is the price that the buyer will have to pay within 48 hours. It doesn’t matter that in 48 hours the gold price has increased by 0.1% or 1% or 10%. And that is one way of taking advantage of the gold spot price.
On the market there are also bullish investors that want to leverage their gold assets. They can take advantage of the gold spot price even if they do not have enough funds by borrowing money. The money borrowed will be in the currency with the lowest LIBOR and as 2006 that currency is the Japanese yen. So we are talking about the yen-gold carry trade.
Gold spot price availability
The gold spot price is available as a fast loading data thanks to the advance in technology. Nowadays, you can keep yourself updated on the gold spot price by reading live gold price charts.
The gold is usually measured in troy ounces but you can find the gold spot price in grams or even kilograms. The time period for which you want to find the price is not a problem. You can inform yourself about the gold spot price for the past day, past 30 days, past 60 days, past 10 years, or past 30 years.
Also, the typical currency in which the gold price is expressed is the US dollar, but if you find it more comfortable to be expressed in other currencies, you will definitely find the gold spot price available in all major currencies.
Gold spot price uses
By knowing the today’s gold spot price you will know how much is your gold worth and whether it is a good time to sell it now or wait for a better price, for a higher demand. You can analyze the past to see how the economic future will look like based on the gold spot price.
You will also know how much was the worth of your gold when you bought it and how much is it worth now, how much profit you have made on your gold.
You can find how much is the worth of a certain bullion gold coin in any currency and also you can calculate how much money you will get for your scrap gold.
You will know all major exchange rates to see how much gold you could by with your currency. Also by knowing the gold spot price we will know how much you have to pay to buy or sell gold, how much it will take to make an investment in gold.