Gold Price Sources.


wealthymatters.comThe new national pastime seems to be watching the gold price avidly.My dad catches up on it in the newspapers and my mom insists on watching it on TV and giving me periodic updates. Never mind that there is so much delay in the prices relayed to make things pretty confusing.

If you must follow the gold prices, these are the best places to do so:

The COMEX prices are shown live on the chart at the top left hand side of the page here: http://www.goldprice.org/spot-gold.html

This link will show the MCX spot prices  http://www.mcxindia.com/sitepages/spotMarketPrice.aspx

And to get a sense of which way gold dealers think the prices will go,use this link: http://www.mcxindia.com/sitepages/RealTimeData.aspx 

The local market rates ,however,would be different from the rates quoted in these charts. This is because the local wholesale bullion market works on a complex system of wholesalers, stockists, bulk consumers, re-sellers, and retailers.For example if you order bulk silver coins from a wholesaler in Zaveri Bazaar, Mumbai, the coins would be made by a coin-making specialist using that dealer’s dies. The same coin-maker would be making coins for many other dealers as well. Depending upon the individual dealer’s cost price and the coin maker’s schedule, the prices would vary somewhat dealer to dealer.In times of great demand such as Diwali, Dhanteras, weddings etc., you may have to wait a few days before your order is completed. In that case you would pay a booking amount to fix the rate at which you would eventually buy–regardless of the rate on the delivery date.

Local wholesale bullion prices are quoted as ‘call’ and ‘delivery’ and there is usually a difference between the two. Additionally, the prices would be different than the ones quoted on the MCX commodity exchange. So the local market prices can be significantly lower or higher than the daily chart quoted rates, depending on the current delivery cycle running presently in the market.In practice, you can expect a local market price difference of between 2%-10% equally in favor of lower or higher prices compared to the chart prices indicated. ‘Making charges’, of course, are extra.

A similar case exists in case of buying gold from banks and post offices.And also in the case of buying imported gold from jewellers.All of them have varying prices based on their own acquisition and holding costs and profit margins.Be certain to ask if quotes are inclusive of all taxes.Quoted rates are subject to negotiation if you are a ‘privileged customer’.Also banks and especially post offices have promotional offers and discounts.Sometimes doing a little math helps.

So the chart above can be used only as indicators and guidelines for your purchases and there is no alternative to actual legwork,especially as many dealers will not disclose rates on the telephone.

 

PS:Something I found today-26.4.13-http://www.sharpspixley.com/india/

About Keerthika Singaravel
Engineer,Investor,Businessperson

3 Responses to Gold Price Sources.

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