The ‘spot’ live gold price is the figure FirstGold™ bases its up-to-the-minute gold prices on, determined in New York and London. Knowing the gold market is one of the first steps in learning how saving gold with FirstGold™ can create a more secure future for you.
What is the ‘Spot’ Live Gold Price?
The spot live gold price is the current price for immediate and ‘on the spot’ purchases of gold, with instant payment to the seller and an instant purchase of gold bullion for you. This price reflects the market’s expectations of which direction the price will take in the future. When the market expects the gold price to go up in the future, the spot live gold price also goes up. When the market believes that gold may go down, the live gold price falls. These expectations are fluid and change frequently throughout the course of each day.
Buying Gold Bullion
When you buy physical gold bullion, you are buying gold that has been manufactured and minted into a tradable form – bullion bars or coins. When buying physical gold bullion, there is a standard small surcharge over the live gold price which covers the costs associated with supplying gold in its physical form. This is to cover incremental costs associated with gold and silver bullion such as secure storage in our Custodian vault, insurance, management fees, as well as FirstGold’s profit margin so we can keep providing you with the best possible service.
What determines the Live Gold Price?
The spot live gold price is set in commodity exchanges in New York and London, and is influenced by many factors. Gold is a monetary metal, and as such its price is decided by inflation, by fluctuations in the dollar and stocks, by currency-related crises, interest-rate volatility and international tensions, and by increases or decreases in the prices of other commodities. It also reacts to the forces of supply-and-demand and factors as common consumer spending.
The importance of our foreign exchange rate
The live gold price is always set and quoted in US dollars. This means that the AU live gold price is sensitive to currency fluctuations between the Australian dollar and the US dollar. Simply put, when the Australian dollar gets stronger in relation to the US dollar, the gold price in Australian dollars goes down even if the quoted live gold price that you see on the markets remains the same. Alternatively, when the Australian dollar weakens, the live gold price goes up.