Current gold prices change minute to minute as gold is traded on the world’s gold markets. These prices – referred to as spot prices – are impacted by many factors including supply and demand, interest rates, world currencies and investor sentiment driven by world events. News about gold purchases by individual country’s central banks, national elections, government announcements regarding fiscal policy, currency manipulation, trade agreements, political instability and war can send nervous investors into precious metals like gold to safeguard their money as gold has historically been a storehouse of value. Several websites including www.kitco.com provide current gold prices 24 hours per day as commodities markets open and close around the globe.
While current gold prices – or spot prices – are meaningful to investors, banks and those speculating in the world gold markets, the gold price most widely used for determining the value of scrap gold is the London Afternoon Gold Fix. Unlike current gold prices which are live and fluctuate, the London Afternoon Gold Price represents the price agreed upon at the close of the trading day in London by the voting members of the London Bullion Market Association.
Rather than using the constantly changing current gold prices to set its prices for scrap gold, GoldFellow® posts the London P.M. Fix on its website and uses that price all day as the benchmark price in its scrap gold price formula. Whether current gold prices rise or fall throughout the day, GoldFellow® holds to the London Afternoon Fix as it considers the London P.M. Fix to be the only verifiable gold price by which to set scrap gold prices and assure consumers they are being paid fairly. GoldFellow® posts the prices it pays per pennyweight for karat gold each day on its website and provides a gold price estimator to help consumers calculate scrap gold values. In a recent interview, GoldFellow® founder, Michael H. Gusky, was recently queried by the South Florida Business Journal about how high he thought current gold prices could rise in the coming year.