When you first think about buying gold, whether it’s a 1g bar or wafer, a 10g bar or a 1 kilo Bullion Bar, the way that it is priced can seem confusing.
Don’t worry – we were all new to the game once!
Let’s strip it down to the basics:
Gold Bullion is 999.9 Fine Gold.
This is termed 24 Carat Gold, which means 9,999 parts per 10,000 fine gold.
This is the industry standard.
Fine Gold attracts a value which is called the SPOT price, which changes constantly.
The SPOT price is affected by all the financial markets and trading values, just like the exchange rates on currency.
The SPOT price is the basic value of gold for trading purposes at any one time.
In addition to SPOT price, the term FIX price is used.
The value of gold is FIXED twice a day on the London market (10am and 3pm, Monday to Friday).
Legacy Gold Customers pay the FIX price on the day on which they place the order (provided the order is placed, online, before 1pm that day).
When you are buying gold bullion though, you don’t usually pay the SPOT or FIX price.
You’ll buy at SPOT/FIX PLUS A PERCENTAGE mark up.
That percentage comes down pro rata, depending on how much you’re buying.
And, the percentage can differ ENORMOUSLY between retailers.
The SPOT price and FIX price are the same whichever company you decide to buy from,
It’s the percentage ABOVE SPOT/FIX which changes wildly, even though the product, 999.9 Fine Gold, is exactly the same.
When comparing prices, be sure to look for clever marketing terms such as ‘priced FROM…’ and additional storage and/or delivery charges.
DID YOU KNOW…?
Prices can be as high as SPOT+ 80% for a single gram.
With Legacy Gold, you’ll only ever pay a MAXIMUM of SPOT + 35% AND your first order will always be as low as SPOT + 10%, with free storage!