Gold Spot Price

Gold Prices History: Where It All Began

Gold has always been valuable, and over hundreds of years, the value has been retained. Dating back thousands of years, there is evidence that gold was seen as a symbol of hierarchy. Treasures with gold in them have been found as far back as 4000 BC. And from around 550 BC, gold has been used for trading and economic purposes. The first gold coins were developed at this time; however, the gold bullion soon ran out and the demand for gold continued. This led to gold rushes in the 1400s and 1500s and since then, gold has been a valuable commodity for trade and investment purposes.

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Understanding the gold spot price

The gold spot price is the price of gold today – the price you will pay right now, not in future. This price changes, depending on what the market is doing, and it is measured per ounce, gramme, or kilogram. You’ll generally see the spot price listed in US dollars per ounce, though there are many different price charts available around the world if you want to find your local currency and value.

The gold spot price is important for gold sales, the real-time price of gold, and other types of investments. It is impacted by many different things, though essentially supply and demand are huge factors in this figure. The more people who want to buy gold bullion, and the more money spent on gold in general, the more valuable it becomes.

Is Spot Price the Same as Market Price?

The spot price of gold isn’t what you’ll pay for gold. Dealers, on the other hand, do purchase from mints at the spot price, or just above it. However, as an investor, if you want to purchase physical bullion, you’ll also need to pay for dealer premiums and other fees. Dealers have different prices as well, so the price you pay with one dealer may differ from the next. Using CanAm will ensure you get the best price for high quality gold.

How Quickly Does the Gold Price Change?

Gold is regarded as one of the safest investments in terms of potential danger. Even if the entire economy collapses, gold has historically maintained its worth.

The price of gold can change in seconds, however, and it’s quite normal for it to change numerous times a day (or hour). Though the change won’t be significant (maybe a few cents here and there). If you take a look at gold price over the past six months, you will notice the spot price has gone up and down, generally reflecting the economy at the time. The most significant changes are over the long-term.

You can view our long-term charts to see changes over longer periods of time or keep track of the current prices on our chart below.

What Impacts the Gold Price?

There are many things that impact the price of gold, including the following.

• Investment demand: The more demand there is for gold as investment, the higher the price.
• Inflation: As gold is considered a hedge against inflation, people buy more when inflation occurs, causing prices to increase.
• US Dollar: Dollar prices tend to go down when gold prices go up, and vice versa. A weaker dollar can make gold cheaper for foreign investors, resulting in a rise in spot gold prices.
• Central Banks: When central banks print money, or buy and sell gold, it can impact gold prices. Strong economies generally have more impact.
• Mining: If there is an increase in mining, the amount of gold on the market will go up, and the spot price will go down.
• Interest Rates: When interest rates rise, the spot price of gold usually lowers. When interest rates are low, gold costs less.
• Recession or Crisis: Economic recession, political turmoil, terror attacks, can create uncertainty. People may be more likely to buy gold as an investment, so prices increase.
• Jewelry and Commodity: The demand for gold by other markets, such as jewelry and industrial, also impacts the price of gold.
• Stock markets: Investors tend to buy less gold when stocks are doing well.

Is The Price of Gold the Same All Over the World?

The price of gold is different around the world, however only by a small amount and you’ll generally pay the same for gold investment regardless of where you are. The value of different currencies can also affect gold, and dealer markups can also change. However, in general, if you are paying $1000 for an ounce of gold in the US, you’ll pay the equivalent in another currency.

Is Gold a Good Investment?

Gold has always been a good investment because the value generally remains positive. It is considered a good hedge investment during times of inflation and times of uncertainty, and as the price of gold moves in the opposite direction of the US dollar, it is seen as protection against dollar value drops.

Gold is also a safe investment option. Unlike currencies, gold’s supply and demand aren’t directly affected by changes in interest rates. Because it has kept its value over time, it can be used as an insurance policy when the economy goes bad. Gold is also often used as a diversification asset because it tends to have a negative correlation with the stock market.

Keep in mind that investing in anything, including gold, comes with risks and you should always do your research to determine the best way to invest.

What Are the Best Gold Investment Options?

Physical gold is the best option for those who want to hold gold as a hedge against economic volatility. You can buy physical gold from government mints, private mints, dealers in precious metals, and jewelers, and it includes:

Gold bullion: comes in many sizes and shapes, meets a set standard for purity and is certified for its weight and quality. The main types of gold bullion are gold bars, which are larger pieces of gold, or coins in a variety of designs. Gold bars are usually measured in grams, ounces, and kilograms.

Gold coins can be purchased in smaller amounts, for cheaper prices, and they are easy to store. They are easy to purchase, and you can find great prices from reputable dealers. Canadian Gold Maple Leaf coins or American Gold Eagle coins are two of the most popular designs.

Gold Jewelry is often more expensive but increases in value, while also having a purpose. Wear it or store it, if you purchase gold jewelry from a reputable dealer or secondhand store, ask for proof its legitimate. Gold jewelry often has a markup because of the work that goes into making it.

You could also put your money into gold jewelry instead of bars and coins. They go up in value while still doing what they were made to do.

Paper Gold is a great option for gold if you don’t have anywhere to store coins, bullion or jewelry. You might purchase shares in a gold mining company, though keep in mind this comes with risks of trade. Gold Exchange-traded funds (ETFs) are another popular way to invest in gold without having to store it – they are more liquid and cost less. Gold derivatives includes gold options and futures, which are best for traders with more experience.

Invest in Gold Today

Investing in gold is easy with the quality products and the right advice. Here at CanAm, our experience traders are available to answer any questions you might have or if you’re ready to invest now, start shopping today.