Why are your Spot prices different from other bullion dealers or platforms?

中文翻译： 为什么你的现货价格与其他贵金属交易商或平台不一样？

“Why are your Spot prices on your website different from other bullion dealers or platforms?”. This is a question that we often hear from our retail clients. So, today we will be answering this question briefly.

1. The prices are dependent on the frequency of price updates to the website. Precious Metals’ prices fluctuate every millisecond. However, websites are not able to handle the frequent update of prices and setting it to update every second will crash the site unless a lot of resources is set up just to support this and this in turn will be very costly. Thus, the refresh rates for websites are usually less frequent and it might only be updated only after a few minutes. Prices on GSC website are updated every 2 minutes.

2. All bullion dealers or platforms have different liquidity providers or price source. Different liquidity providers will provide different prices with minimal spread. Thus, the Spot prices would not be exactly the same for different dealers. Moreover, spot prices in different currencies (depending on home currencies of dealers) for example in our case SGD, will also need to be converted from USD to SGD as Gold is traded in USD predominantly. This would also incur some spread and depending on the forex liquidity provider that the dealer uses for currency exchange, in most cases banks, there will be a spread as the bank will have to make their margins. This will widen the spot prices quoted in the local currency, in our case SGD.

Spot prices can be affected or determined by various factors such as market demands, sentiments, number of buyers and sellers and more. Even location of the dealer and thus the cost of bullion can differ for the same bar or coin in different countries. We will further discuss these in future articles. If you have any questions, please feel free to contact us to understand more! In the meantime, stay safe!

Evonne