Tag: coins and bullion

What is the “Spot” Price of Gold and How is it Set?

Posted on September 13, 2024 by Matthew Dickson

Investing in Gold or Silver? You’ll want to keep an eye on the “Spot” price to know when to buy and sell! But what exactly is a “Spot” price? And where did it originate? Keep reading to learn more!

What Is a “Spot” Price?

A “spot” price is “the price at which an asset can be bought or sold for immediate delivery of that asset.” Regarding precious metals, the “spot” price is the price at which one ounce of that precious metal -like gold or silver- can be bought and sold at any given time.

Who Determines the Spot Price?

The spot prices of precious metals are determined by supply and demand- and are constantly changing. A team of several banks, an oversight committee, and a panel of internal and external chair members, calculate the figures based on supply and demand in the precious metal futures derivative markets and establish averages for the spot price. Comex (CME) in the United States, and the London Bullion Market Association (LBMA) in the UK, operate these major derivative markets.

What Impacts the Spot Price?

Multiple factors impact the market price of a precious metal. Royal Mint, the world’s leading export mint, lists “Six Key Factors” that influence precious metal prices:

“Economic Indicators, like Global Economic Health, Interest Rates and Monetary Policies, and Inflation Trends. Political Factors, like Political Stability and Trade Policies and Tension. Supply and Demand Dynamics, like Mining and Production Rates, and Market Demand Trends. Investment Market Trends, such as Investor Behavior and the Role of ETFs and Other Investment Vehicles. Environmental and Social Considerations, like Climate Change Effects and Sustainable Mining Practices. Lastly, Future Trends and Predictions, such as Technological Innovations, and Economic Forecasts.”

How Does the Spot Price Differ from the Retail Price?

It is important to consider dealer fees called “premiums” when buying or selling precious metals. These “premiums” often fluctuate with spot price and demand and are in addition to the spot price. At David’s Jewelry and Coin Exchange, we use multiple sources for our premiums, such as other retail sources like Apmex and market demand trends.

Start your Precious Metal Investment Journey at David’s Jewelry and Coin Exchange

At David’s Jewelry and Coin Exchange, we pride ourselves on low premiums and an always accurate spot price. With over 30 years of experience in buying and selling precious metals, we guarantee a great experience and a large selection! Stop by to add to your collection of precious metals!

Investing in Gold and Silver Coins and Bullion: Why It’s Worth It

Posted on August 4, 2022 by Matthew Dickson

In today’s economy, there are many different investment options ranging from stocks, bonds, NFTs, and cryptocurrencies. Each of these investments operates in different ways and yields profit at different rates. It can be a lot to take in! However, investing in gold or silver coins and bullions is a safe option that isn’t nearly as complicated. Keep reading to learn why you should consider investing in coins and bullion.

Why Invest In Gold and Silver Coins And Bullion?

Firstly, investing in gold and silver coins and bullion offers peace of mind that many other types of investments cannot. Coins and bullion are tangible items. You can see, feel, touch, and physically count your portfolio. You’ll always know how much you have. Secondly, gold and silver coins and bullion are considered safer investments. They are less prone to high inflation rates and are more secure during uncertain financial times. These items are typically valued by weight and material.

Getting Started in Investing in Gold and Silver

So, where do you start? Start by determining how much you would like to invest. Traditional investors recommend holding 5% to 15% of your personal assets in gold and silver coins and bullion. The next step is to create a diverse portfolio by purchasing different types of precious metals. Gold is a bit more stable than silver, but silver tends to follow economic activity. Additionally, silver can be easier to use as a form of payment due to the smaller denominations. How you create your coin and bullion portfolio all depends on your financial needs and sensitivity to financial risk.

Where to Buy Coins and Bullion

The safest option for buying gold and silver coins or bullion is to shop in-store. Buying these items online can be risky and unsafe because you can’t be sure who you are buying from, the quality and authenticity of the items, or if your items will be delivered safely. When you shop with us, you’ll have access to our extensive selection, and our team of experts will be there to help you along the way.