What is spot gold?

Gold bullion for immediate delivery

Like all financial markets, the gold buying sector contains its share of jargon and technical phrases. ‘Spot gold’, or the ‘spot gold market’, might be terms you’ve heard but have been a little unsure of.

Briefly speaking, the spot gold market is where professional participants in physical gold investment trade large gold bars in huge volumes and at very efficient gold prices. This market doesn’t meet in one place and exists in the form of a widely distributed network of refineries, bullion dealers and bullion banks.

These market participants trade what is called spot gold – large gold bars weighing 400 ounces or close to 12.5kgs with a purity of 995 parts per thousand pure or better. Gold bars traded as spot gold are deemed to have ‘good delivery’ status, having entered the professional market’s vaulting system, called the ‘chain of integrity’, after they were first refined or last assayed.

These standards allow spot gold market participants to trade seamlessly with peace of mind. Gold bullion’s fungible nature and the accepted 400 ounce good delivery bar enable the spot gold market to function in this manner.

How can I buy gold at spot gold prices?

Previously, individuals had been excluded from accessing the efficiencies of the spot gold market, not trading in lucrative enough sizes for brokers and dealers to service their demand for gold bars.

The Real Asset Company’s platform changes this in favour of the individual investor, with physical gold being accessible in our gold markets at extremely efficient spreads of typically between 0.15% and 0.25%.

With technology now working for the smaller investor, individuals can buy and sell physical gold online in increments as small as one gram ($50 or £30 at the time of writing). The process is simple and straight-forward meaning it’s never been easier to buy professional market bullion online in three simple steps.