What is a bargain price?

The spot price is the current world market price of a precious metal such as gold whether silver, for direct delivery. This price is continuously set in international markets and forms the basis for almost all transactions in physical precious metals.

When you read about the spot price of gold or the spot price of silver, so it's not about the actual sales price, but for a reference price that is used worldwide by banks, traders and institutional parties.

Why is the spot price important?

The spot price is important because it:

• The objective market value depicts gold and silver
• globally transparent and verifiable is
• It forms the basis for the price you pay when buying gold or silver or the price you receive at the selling gold or silver

At GoldRepublic, the spot price is always the point of departure. The final gold price whether silver price that you pay consists of the bargain price, plus a surcharge for, among other things production, insurance, storage and logistics.

How is the spot price of gold determined?

The spot price of gold is created on international trading platforms where large amounts of gold are traded. This is mainly done via:

• International precious metal exchanges
• OTC (over-the-counter) markets between major market players
• Price fixations that occur multiple times a day

The price is determined by supply and demand. Factors that influence this include:

• Inflation and interest rate developments
• Exchange rates (in particular the US dollar)
• Geopolitical tensions and economic uncertainty
• Demand from central banks and institutional investors

The gold price is quoted internationally in US dollars per troy ounce. For Dutch investors, this amount is converted to the spot price of gold in euros.

How is the spot price of silver determined?

The spot price of silver is determined in a similar way to that of gold. Here, too, the price changes continuously based on international trade.

What distinguishes silver from gold is that the silver price is also strongly influenced by industrial demand. Silver is used in electronics, solar panels and medical applications, among others. As a result, the silver price is usually more volatile than the gold price and the price can fluctuate more strongly.

Spot price versus purchase price

The spot price applies to large, anonymous transactions in the global market. Buying physical precious metal involves costs, such as:

• The minting or casting of bars and coins
• Transport and insurance
• Storage in professionally managed vaults
• Administration and control

The combination of the spot price and the above costs together leads to the purchase price of a precious metal.

Going to give birth with GoldRepublic directly from the smelter into the vault. As a result, we know the quality and origin of the precious metal. This quality is also checked by a external, independent auditor.

Spot price and trust

For wealthy investors, investing in gold is not just about price, but above all about certainty and trust.

GoldRepublic is:

• The first party in the Netherlands with an AFM license for physical precious metal
• Al over 15 years active in the sale and storage of gold
• Administrator of more than €1.5 billion in precious metals

We store precious metals in managed by third parties, independent safes. This means that an external party can confirm that precious metal is actually present. This form of storage is more expensive, but offers maximum transparency and security.