As you continue researching the joys of investing in precious metals, you will most certainly come across the term ‘spot price’ and wonder why all of the prices for bars and coins – no matter where you decide to shop from – are higher.
To understand this, you first need to figure out what ‘spot price’ is. Take a second to reference Royal Bull’s “Precious Metal Prices” chart – it lists your favourite precious metals and their corresponding price. ‘Spot price’ is the value of an ounce of a specific precious metal at that exact moment in time. Reference this chart frequently as it changes constantly throughout the day.
So, why is the spot price lower than the bullion retail price?
Getting Precious Metals from “A” to “B” Takes Times and Money
If only life were as simple as buying precious metals at spot price. Unfortunately, life isn’t always that easy…or inexpensive. Wherever you buy your precious metal, whether from Royal Bull or direct from a mint such as the Royal Canadian Mint, there will be costs associated with getting that gold coin, gold bar, silver coin or silver bar into your hands. Think of all of the transportation costs, the marketing costs, the labour costs, the storage costs and customer service costs.
Product Markup Depends on the Bullion and Its Value
Sometimes the markup will be based on a percentage of the spot price, while other times it will be a set cost associated with the coin or bar. Royal Bull often uses a percentage of the spot price, ensuring that you have the bullion product you need at a price you can afford. Considering the many obstacles to getting your gold and silver products into your hands, we hope you feel that the premium over spot is worth it – Royal Bull has one of the lowest markups in the industry.
Buying Bullion at Spot Price in Canada
Although this may not be immediately possible, the ever-fluctuating spot price of bullion may allow you to increase your bullion’s profit potential by buying and selling at the right times. Hint: buy low and sell high!
Keep an eye out for the many deals available at https://jdemo243.wpenginepowered.com/product/deals/. Buying at low prices will keep your investment profitable for years – and even decades – to come.
