New gold bullion buyers often begin by wondering how they might be able to buy gold at spot as well where can you buy gold bullion at the spot price.
We being with a word of caution. Please be careful in your gold bullion at spot price endeavours.
Many offers for gold at spot price or even for gold under spot price are often the realm of conmen, counterfeits, and chicanery.
Here we’ll teach you how to buy gold at or near spot safely via due diligence and knowing the counterparty is trusted and delivers on their word and promise.
Where can you buy gold at spot price?
After about 10 years straight of consistently higher gold prices. The to date record US dollar gold price touched near $1,900 oz USD in August 2011.
Since that time the price of gold has consolidated to as low as about $1,050 oz USD in late 2015, but has since rebounded to prices over $1,350 oz USD in the past few years.
Below is an over 200 year chart of gold's US dollar price. Note the chart starts moving exponentially right after the 1971 Nixon Shock which severed the final underlying ties between gold bullion and now every government currency in circualtion including the US dollar.
Can I buy Gold at Spot Price? - Yes possibly... for Now
Due to lower price premiums currently in the gold bullion industry, various high volume gold bullion dealers (who work on razor thin profit margins), have offered one time buy gold at spot price opportunities for new customers to encourage them to become customers. Others might even get some sales subsidies by large corporations who may be trying to bolster their top line revenues and perhaps furthergain bullion trading market shares on their platforms.
Physical gold bullion dealers make little to no money in these gold at or next to spot price offers. In fact, most often it is a loss in terms of overall costs associated with such transactions, yet some gold bullion dealers do so in the effort to gain new customers and business for the long term.
We strongly suggest that on any gold bullion at spot price deal you may come across, that you perform proper due diligence on the gold selling counterparty.
Stick with established high volume gold bullion selling businesses that are highly ranked on hard-to-rig gold dealer review websites.
Pay attention to rankings and review volumes. Any gold dealer with poor or mediocre reviews is not worth risking your hard earned capital with.
Can I buy Gold below Spot Price? - Unlikely... Be Very Careful
Typically the only individuals who buy physical gold bullion below spot price are gold scrap refineries, we buy gold stores, and gold bullion dealers who may bid or offer a price slightly lower than the fluctuating gold spot price (often times for gold bullion bars, conversely popular modern gold bullion coins typically yield bid prices at or even slightly above the gold spot price).
Currently for modern .999 fine physical gold bullion products, one should never accept a bid or offer price below 98% of the fluctuating gold spot price. If an individual tries to buy gold below spot price chances are you will run into counterfeit gold bar or coin salesmen on websites like Craigslist or unproven gold bullion sellers on eBay.
Be very careful as Chinese counterfeit gold products are a real issue in our industry and are used on a daily basis to take advantage of unknowing or lowest price at all costs gold bullion buyers.
More often than not, these counterfeit gold frauds go undetected for years or even go unreported due to embarrassment or due to other reasons.
For every “I tried to buy gold below spot price” victim and fraud story covered on the news or in the media, we could probably multiply that figure by 10X or more in the amounts of times it goes unreported. Often those who get low or unbelievable gold price conned, don't even tell their loved ones due to feelings of humiliation.
Buying Gold at Spot or Buying Gold below Spot isn’t Normal
The reason for this is rather simple.
Physical gold bullion’s supply chain calls for physical gold bullion products to be sold above the gold spot price in order for various parts of industry to stay in business and out of bankruptcy.
If selling gold bullion in large volumes at spot was a legitimate business model, businessmen would have done so long ago.
Take a look at how gold bullion gets to the end user below.
Gold Bullion's Supply Chain from Origin to Sales Above Spot
Star explosions produce precious metal elements
Gold laced asteroids crossed the universe, formed and collided with Earth
We humans mine Gold + Recover Gold Scrap (mostly below gold spot prices)
Gold Refiners purify physical gold (often selling .999 gold at spot to large mint / dealers)
Gold Bullion Mints create bullion products ( bars and coins then are sold above spot )
Gold Bullion Dealers like us at SD Bullion, trade gold bullion products
( bought or sold online then nondescriptly mailed fully insured, or locally)
Customers buy, own, sell, trade their physical gold (above, at, or slightly below spot)
Unless you own a business in this supply chain, it will be risky and difficult to ever procure physical below spot price.
Paramount to any and all gold bullion purchasing is that you actually indeed get what you pay for. There are decades of allegations and frauds which prove this is often not the case.
Reputable high volume gold bullion businesses typically operate on super slim profit margins ranging between basis points (100ths of 1%) to low percentage points on various trades.
Gold dealers are not in business to go bankrupt yet many have done so over the years due to sheer incompetence or worse.
If you are attempting to buy gold at spot, make very well certain the counterparty is trustworthy, solvent, and reliable.
If you found this content informative, be sure to pick up our 100% free 21st Century Gold Rush guide before you go.
Thanks for visiting us at SD Bullion.