The Scottsdale Bullion and Coin gold price chart above reflects the price of gold at any given time based on trades and spot prices in the gold market. The chart provides a visual representation of current and historic price fluctuations for gold, silver, platinum and palladium, and can be adjusted to show ratio comparisons between the precious metals. The chart is customizable by day, month or year, and shows highs, lows, bids and asks. This gold price chart also offers the option to compare the price of gold with the Dow Jones, S&P 500, S&P Euro, Gold BUGS, WTI crude oil price and the U.S. dollar index (DXY).
Worried About Investing In Gold At The Wrong Time?
New to gold investing? Before you buy gold, learn how to avoid costly rookie mistakes with our Free Guide. Get a copy of our gold investor guide now, 100% FREE!Get Investment Guide
How Are Gold Prices Determined?
Gold is a great place to start investing. The precious metal is a physical, tangible property that retains actual value in the midst of economic turmoil. Gold is universally valuable and maintains long-term price potential. Let’s take a look at the specifics of gold pricing to better understand the chart above:
Spot Price vs. Gold Futures
Spot pricing is the price for immediate delivery, literally meaning “on the spot,” while future pricing is for delivery of gold on a future date. Gold spot price is lower than futures pricing because it doesn’t include financing charges for future payment on the gold, or storage fees. Learn more about understanding the spot price of gold.
London Gold Fix Price
The London gold fixing is a process by which gold spot price is set twice daily. The London Gold Market’s five members meet daily at 10:30 AM and 3:00 PM London time. They act as brokers and set a price that then acts as a benchmark for other markets all over the world.
Supply and Demand
The main reason for gold price changes is supply and demand. As mines are opened or expanded, or as traders shift to other investments, the supply of gold can go up, lowering the price of gold. During times of economic turmoil, investors tend to put their money into real commodities, including gold, so demand increases and the price rises. Because gold is a genuine and rare resource, it will always retain value, even when the market is volatile.
Dealers who work with bullion and coins have extensive experience in the field and spend a great deal of time watching the markets. They determine their physical gold price based on the spot price of gold, current market trends and numismatic value, or the collectable value of a coin. A trustworthy gold dealer will take these matters into consideration and will provide a fair price to clients who are looking to buy gold.
Factors That Influence the Price of Gold
The global gold market both affects and is affected by movement in the world’s financial markets, and is in turn influenced and affected by a number of factors. Individuals, organizations and even countries buy and sell gold for a variety of reasons, and gold prices reflect the current market consensus on many different indicators. A few of the major influences on the price of gold include the following:
Financial experts and experienced investors understand the role gold plays as a hedge against inflation. Many in the market buying gold today are making purchases to add a shield against anticipated losses in the purchasing power of paper currency. History repeatedly shows that the greater the expectation of inflation in the markets, the higher the gold price. With continuing government deficits and rampant printing of paper money, gold prices today reflect significant concerns over mid- to long-term inflation.
The price of gold also reflects the fact that is a highly fungible medium of exchange. Any global crisis that seems to or actually does threaten governments and international stability creates new incentives to buy gold in greater quantities. Gold prices will rise during such a crisis because people and companies are buying gold as security against the failure of normal currency. In fact, any study of peaks in a gold price chart will show a close correlation of gold prices to past global disasters, wars and other catastrophic events.
In today’s economies, governments will sell and buy gold based on various monetary policies and needs. For example, a government may decide to sell or buy gold in large quantities to control a currency value against the dollar. Economists acknowledge the role of gold prices in the global economy, and even with managed float currencies, a country’s gold holdings can influence international confidence in that nation’s currency and level of economic stability.
An increasingly important component of global gold prices is the yellow metal’s role in a number of industrial applications. Especially in technology and electronics, gold serves as a preferred element for many components. There is actually more gold today in a ton of cell phones than a ton of gold ore. Likewise, people buy gold as the most desirable choice for jewelry, just as they have done for centuries.
Supply and Demand
Underlying every market is the issue of supply and demand. As demand for gold increases due to the above factors, the price will rise. The mere fact that all the gold ever recovered would only how sensitive gold prices are to increased demand. Mining and extraction costs continue to escalate and affect supply, so the amount of gold available is increasingly a key driver of gold prices; the overall gold supply remains relatively limited.Read more about the common factors that influence the price of gold.