There are many ways to invest in precious metals — bullion, coins, jewelry, derivatives like ETFs, stocks in gold and silver miners, and futures and options agreements. Regardless of your decision to invest in precious metals as physical or paper assets, you’ll need to find a reliable source for live pricing on the most valuable, traded precious metals available on the market.
Before making a purchasing decision, savvy investors will make sure they are up to speed when it comes to understanding the pricing of gold or silver precious metal products. Getting a firm price quote is also fundamental to getting a fair deal.
In this guide, we’ll go over what some of the information on charts and other pricing data means in relation to your precious metals investment. We’ll also cover how pricing is determined based on the myriad of ways investors can purchase actual physical forms of the precious metals themselves — from gold and silver spot prices — as well as derivatives that use gold, silver, and other precious metals as an underlying asset — like share prices for ETFs and mining companies.
What Is Meant by Live Prices of Precious Metals?
To understand how live precious metal prices are determined, look at how a precious metal’s spot price relates to its futures price. This is because traders determine precious metals spot prices on futures exchanges.
A spot price is the live price of a precious metal with immediate deliverability. It represents the current rate at which a metal can be purchased or sold at a specified place and time. This rate defines the explicit value of precious metals market prices.
Investors should know the spot price going into an investment so they can get the best deal on their purchase. Knowing the spot price also supports investors when shopping around to find a reputable dealer that will give them a fair deal.
While precious metals often serve as a hedge against inflation and store of value for any well-diversified investment portfolio, knowing metal spot prices can help investors strategically time their investments to boost return on investment gains. By coupling a deviance from the buy-and-hold mindset with the application of some technical analysis, investors can use spot price to leverage their timing, position management, or early profit-taking on the market.
Investors should also note that spot prices may diverge from real-world pricing in the markets for physical precious metals. For instance, during periods of extreme stress in markets, metal bullion prices may surge compared to the quoted spot price. As a result, investors could see a significant rise in premiums on retail bullion products. This is just one other reason why referencing spot price to time your entry into the precious metals market is fundamental to getting the most optimal wealth-building returns.
Where Can You Find Current Precious Metal Spot Prices?
Exchange markets across the world report precious metals spot prices. Today’s precious metal prices will depend on the location of the reporting market. London, Shanghai, and Dubai exchange contracts, with metal prices flashing across global time zones. Still, the largest and most influential market for metals prices is the U.S. COMEX exchange in New York.
Paper and televised news media sources like CNBC report daily spot prices. Financial publications like CNNMoney, Marketwatch, and Bloomberg can also serve as spot prices references. There are ample online resources from precious metals dealers, like The U.S. Gold Bureau with current live spot prices as well.
How Often Does the Live Spot Price for Precious Metals Change?
Like other asset classes, gold and silver are susceptible to the invisible hand, causing price swings in commodity exchange markets. This can be due to investor sentiment, or the mismatched disparity caused by fluctuating trends in supply and demand.
As of April 2022, one troy ounce of gold trades for around $1,900. 100 years ago, one troy ounce of gold sold roughly $20. Although the spot price of gold has fluctuated during periods of inflation or deflation, its value as an asset class has remained relatively stable.
While the prices of gold and silver tend to trend in the same direction, silver has a much more volatile trading position compared to gold. This means investing in silver can come with higher gains, but also more extreme losses compared to gold. During certain periods, the price of silver can decouple from gold depending on trends in supply and demand. If there is a silver shortage, for instance, silver prices could skyrocket independent of gold. Should a financial crisis strike, gold’s steadfast ability to act as a hedge against inflation by maintaining its store of value may make silver pale in comparison if there is a hit in industrial demand.
Overall, in terms of currency, gold, silver and some other precious metals can offer a greater store of value compared to fiat currencies and paper assets during times of economic turbulence. When there is a sharp price rise in precious metals, governments, and financial institutions try to combat the rising demand for physical metals by flooding futures markets with paper sell orders. This interference can also cause a shift in metal spot prices.
Why Buy Your Precious Metal Investment Through the U.S. Gold Bureau?
Finding a trustworthy, reputable dealer in the Precious Metal Industry is fundamental to securing an investment that is legitimate and fairly priced. The U.S. Gold Bureau aims to continually raise the bar as industry leaders, bringing integrity and transparency throughout all aspects of your precious metals acquisition process. We provide reliable and up-to-date information on precious metals spot prices and trading resources to help investors make decisions to put themselves in the best position financially.
Our Precious Metals specialists are all knowledgeable and well-trained to assist you in selecting from the highest-quality investment grade and bullion precious metals products. As listed bulk purchasers of coins from the U.S. Mint, we can assure the origin, authenticity, purity, and quality of every product we offer. All operations are directly compliant with the rules and regulations of the Federal Trade Commission, as well as the top associations and governing bodies of the precious metals industry.
For more information on how to invest in precious metals, contact us today.