From 2560 BC until the end of the Bretton Wood system in 1971, gold was used as a form of money. It was used as a store of value for people as well as countries. Since the end of the Bretton Wood system, gold has lost its strength as a form of money. It is now considered as a store of value and safe retreat when in crisis. The Central Banks still use gold as an international trading and swapping currency.
The spot price is a price estimation of a commodity for immediate settlement. This settlement takes one or two days starting from the trade date. Depending on the item being traded, spot prices can predict market expectations of future price schedules in different ways.
For a non-perishable good (e.g., gold), the spot price reflects market expectations of future price movements. The common standard for the gold spot price is known as the London Gold Fixing, a meeting held twice daily via the telephone between representatives of five trading companies.
In addition to this, active gold trading is supported by intra-day gold spot price taken from gold markets around the world. This price is finally decided by the demand and supply like all other commodities. When you think of selling your gold, the very first thing that you need to understand is the spot price.
After the decision by the London Gold Fixing and the demand and supply rules, the rate is set and changed to Euros, Pound Sterling and US dollars. We always measure gold in Troy Ounces. If the spot price of gold is £560 than one ounce of 24k gold is worth £560 pounds at the spot level. If you decide to sell your gold, do not expect too much money out of it.
The best gold dealers pay on a sliding scale. Some also pay 90% of the spot price. To expect a return on that you must know the game rules. Many things need to be kept in mind when selling your gold scrap, and when you do not know what you are doing, it will cost you very much. Something that you need to remember is that the more you sell the higher should be the return rate.
Some people only sell a few gold scraps in their life, while others transfer it to their heirs. If you walk into a shop with broken gold jewelery and you need to sell it, you should know the methods and formulas otherwise you will lose everything without evening knowing. Always know what you are doing before you make a decision to sell your gold. Do a survey or ask an experienced person before you sell it off.
Many other factors also need to be kept in mind when making a decision and accepting the buyers price. The cost of gold is confusing. Always do research even before selling scrap and before entering the shop. If you start deciding after you enter the shop and try to understand the price and everything you will end up accepting whatever the buyer offers.