Spot gold prices change regularly.
Because many treasure hunters are constantly searching for that lost gold coin or the gold nugget, many do not understand how to price gold for sale on the open market.
Hopefully I’ll be able to explain here, how you can price the gold you find for sale to either a refiner or a coin dealer if you have gold coins.
Why Is Gold Important
To answer the question, Why is gold important? We only need to look at history. Every time the United States, or for that matter any country, suffers through an economic crisis, the individuals who held gold survived financially.
Problems like federal debt, trade deficits, interest rates, and inflation, are just a few of the problems that cause the spot gold price to increase.
At the time that I am writing this, the US dollar is in more trouble than past years. The purchasing power of the dollar has eroded significantly since WWII.
When the influences from the above factors create a negative effect on our dollar, the people who have held gold have, as I mentioned before, survived the crisis.
Since the beginning of time gold has always been looked at as an asset and not a liability. It was once stated that gold is the only asset that is not someone’s liability.
Gold is trusted, it is redeemable, and it is looked upon as a sense of security by all nations.
The spot gold price is the price that is quoted for the immediate payment to purchase gold. All precious metals have spot prices.
Sometimes the gold price can be a barometer of what the market prices will be in the future.
Click here for a better understanding of how gold pricing can determine market price in the future.
What Does Gold Weigh?
Gold is measured in troy ounces. A Troy ounce is equal to 480 grains. A troy ounce is a bit heavier than an avoirdupois ounce, which weights 437.5 grains.
Troy weight has 12 ounces to a pound. The avoirdupois system has 16 ounces to its pound.
One unit is equal to one pound (12 ounces)
5760 Grains equal one pound
373.2417216 Grams equal one pound
One ounce equals 480 Grains
One troy ounce equals 31.1034768 Grams
20 Pennyweights equals a troy ounce
1 Grain equals 0.06479891 Grams
What Does A Refinery Do?
If you have scrap gold, or jewelry and you want to sell those items, a refinery will purchase the item from you and then pay you a percentage of the gold price.
You can buy gold bullion, gold coins, gold bars or scrap gold, options and futures. You can also buy shares of gold stocks and mutual funds that invest in gold.
Your gold buying needs should be well thought out before your fist purchase.
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You should talk to a financial professional who is knowledgeable about gold to help you decide what types of gold to buy. Remember, the price you will pay will be based on that days spot gold prices.
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