What Is SPOT Value
Gold is a commodity. That means it can be purchased and traded in an open market for a certain value. As with any commodity, the price fluctuates depending on a great many things (which we will not be discussing here). The important thing to remember, is that gold always carries a specific value.
In the open market, gold trades for what is called a Spot Price. This Spot Price is the dollar amount that any certified dealer in the open market can and should sell their gold for – given that all parties are following the same commodities market.
In the United States we follow the SPOT MARKET. Gold is traded against how much weight is being sold. In the Spot Market, Troy Ounces are the primary measurement.
Very Important: When we list our daily spot values, at our stores & online – we use the daily spot value of a Troy Ounce.
Why We Use SPOT Value
Keeping to our core value of Integrity, we choose to use open and transparent numbers when talking about Gold Value. The Spot Market is public and easily accessible. You can go right now to https://kitco.com and see what the current price of Gold is. There is no question about that.
And in line with our commitment to our customers, and making every transaction a win-win scenario – we decided that we would always base our pricing around the open and public gold market value. We offer 80% because it is higher than almost if-not-all of our competitors both locally and online.
We believe that by offering an open and transparent scenario, and removing any, “Yea Buts, What Ifs, or How Abouts” around it – that we can create the best Gold Selling experience anywhere in the South Florida market; if not the Internet and United States.
Our goal is to provide you with quick, open, simple to understand prices that leave you satisfied.
How The SPOT Value Impact YOU
Earlier I mentioned that the open market measures gold using something called a Troy Ounce. It’s important to note, that a Troy ounce is slightly more weight than a regular ounce (in case you wanted to calculate a conversion on google).
1 Troy ounce = 31.1035 Grams
When customers come in to our location, or they send in their items to us – we generally measure those items using grams.
So whether you are considering doing business with us or taking your gold in to a local dealer you can do the math for your gold item and calculate the exact fair market value of your gold.
It’s important to remember that part of the equation to consider when selling your gold is:
- The carat weight of your gold
- Does your item have other metals (if it’s a jewelry piece)
- Are you weighing just the gold – or all metals included in your item
Here are a few examples of outcomes to help you have clarity…
- 10 Grams of Gold (weighted)
- 10 / 31.1035 = 0.3215 Troy Ounces of Gold
- 0.3215 Troy Ounces * $1575 (Current price as of writing of this blog) = $506.37 Fair Market Resell Value
So all things considered you can expect your gold would trade at $506 USD at the time of this blog being written.
It is VERY IMPORTANT to consider, however, that dealers will not be offering you the exact spot value of your item. As a business, dealers have to also account for their overhead costs and consider the amount of gold they have to buy before they can submit it to their refineries.
This is why, with Fast Kash Trading Co, we are able to offer you 80% of the current Spot Value price. Being the refinery, we do not have to wait for any specific quantity of gold before we are able to melt down the metal into market trade ready gold bullion.
So in our scenario up top, for 10grams of gold, you could expect an offer of $405 dollars.
To summarize, gold is traded using the fair market price called a SPOT Value. Dealers use the spot value to calculate their offers. You can find the CURRENT spot value price by visiting https://kitco.com. Fast Kash Trading Co. publicly states that we will pay you up to 80% of your gold value based on the current spot value. We have also shown you how to roughly calculate what to expect. So whether you come to us, or transact with another, you are now empowered to reliably and transparently sell your gold.