Spot Gold - How Do I Buy Gold on the Spot Market
Have you heard of the spot market? Thinking about trying it out? Before you dive deep into the world of trading on the spot market, there are a few basics you need to know — and you'll want to know them really well. Like all investing, buying gold on the spot market functions best when you know what you're doing and feel confident in the marketplace. Let's get started.
Going to the Spot Market
Psych! You can't actually "go to" the spot market because it isn't an actual, physical place. People who buy and sell on the spot market are professionals from all over the globe. When you are trading within this market, you are expected to adhere to a firm set of standards about how to trade gold.
The following set of assumptions are used by those who buy and sell gold on the spot market:
- Price quoted is always in U.S. dollars per troy ounce.
- The buyer will pay in full within 48 hours.
- At the point of trade, the gold will be unallocated. There is a right to allocate later without an additional cost.
- The unit of delivery will always be 400-ounce bars.
- Bars will be Good Delivery bars made by refiners on the Good Delivery list.
- The buyer will pay to send a recognized specialist courier to the vault door of the seller.
Can You Trade on the Spot Market?
You cannot exactly trade on the spot market. The spot market is not set up for individuals to make transactions. Gold traders working within this market will not trade with individuals, mostly because all the red tape involved — credit checks, identity checks, account setups — is much too tedious and labor-intensive to do repeatedly for every person who wants to buy or sell.
In addition, the market is meant for high-volume sales, never for just a few ounces at a time. You could try to enter the market through a bank, but banks will generally try to sell you unallocated gold. Settlement and storage are too much of a hassle, so banks trade almost exclusively in unallocated gold.
Finally, a Solution!
Luckily, you still have close access to spot trading through OneGold. With gold that is properly allocated and prices that are very near to those on the spot market, OneGold can help you "go to" the spot market without actually "being there" yourself.
OneGold makes it quick and easy for you to buy gold close to spot with little to none commissions and storage fees.
When you feel ready to use our expertise and security to buy gold on the spot market, just visit OneGold to get started.