There are many factors that affect the spot gold and silver prices. The real market prices of precious metals are the determining factor for spot price. Spot price uses any expenses or commissions the dealer might add along with the current market price. Any of the factors that affect the market price will affect the spot price as well because of this. This includes political and economic factors around the world that may change and cause precious metals prices to fluctuate.
Market volatility and speculation can also affect the market and spot prices of precious metals and other commodities. Supply and demand affects market price which is the foundation for spot price. If the demand for a certain precious metal goes up or the supply for that metal goes down, both the market price and spot price will do the same. Also helping to determine the market value for an ounce of gold is The London Fix.
One factor that affects the spot gold and silver price is which dealer is used to make the purchase. Every dealer marks up their gold and silver just like a grocery or department store does. If you compare different dealers, you will see that some have lower spot prices than others regardless of the fact that the market value for precious metals is the same for all of them. The handling fee that the dealer charges for the transaction is the reason for the difference in price.
The amount and quantity that is purchased in a single transaction will also affect spot prices. Larger purchases often receive discounts that help lower the spot price paid for the precious metal. Small purchases and amounts will usually pay the highest commission for the transaction. This encourages investors to purchase as much as possible in a single transaction.
There are other factors besides the ones in this article that may also affect the spot gold and silver prices. Smart investors will examine all of the relevant information on precious metals and dealers before they decide to invest. This assures that they are making the right decisions about which dealer they choose and how to receive the lowest spot price.
Market volatility and speculation can also affect the market and spot prices of precious metals and other commodities. Supply and demand affects market price which is the foundation for spot price. If the demand for a certain precious metal goes up or the supply for that metal goes down, both the market price and spot price will do the same. Also helping to determine the market value for an ounce of gold is The London Fix.
One factor that affects the spot gold and silver price is which dealer is used to make the purchase. Every dealer marks up their gold and silver just like a grocery or department store does. If you compare different dealers, you will see that some have lower spot prices than others regardless of the fact that the market value for precious metals is the same for all of them. The handling fee that the dealer charges for the transaction is the reason for the difference in price.
The amount and quantity that is purchased in a single transaction will also affect spot prices. Larger purchases often receive discounts that help lower the spot price paid for the precious metal. Small purchases and amounts will usually pay the highest commission for the transaction. This encourages investors to purchase as much as possible in a single transaction.
There are other factors besides the ones in this article that may also affect the spot gold and silver prices. Smart investors will examine all of the relevant information on precious metals and dealers before they decide to invest. This assures that they are making the right decisions about which dealer they choose and how to receive the lowest spot price.
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