All investors should understand how the value of their holdings is determined. Most marketplace trading depends upon what’s known as the spot price, especially when it comes to liquid assets like precious metals.

The spot price is the present marketplace trade value of an asset, such as a commodity or security. Even though spot prices are defined by time and place, when it comes to exchange rates, they are typically uniform around the globe.

Bullion traders should read on to learn more about precious metal spot prices and ensure they get the best return on investments.

Key Precious Metal Markets

There are two key markets that help to determine the spot prices of precious metals. Let’s go over these markets and how they impact a “fair” price when it comes to a return on gold and silver.

The Over-the-Counter (OTC) Market

The OTC market is made up of a network of independent traders working privately in pairs 24 hours a day. Each deal is made over the phone or via a dealer’s proprietary trading software.

While typically used for professional trading companies making large deals, OTC trading is also done on a much smaller scale, such as when you buy a bullion coin or bar from a dealer.

This can make pinning down the OTC spot price difficult, which means many precious metal dealers use Bloomberg, Reuters, or the London Fixing to indicate current pricing trends.

In comparison, the spot price of gold, silver, and other precious metals tends to be much easier to pinpoint on a public exchange like the futures markets.

The Futures Exchanges

Futures markets are regulated public exchanges where the price of precious metals is traded at various future dates. The biggest and most prominent is the Commodity Exchange (COMEX).

Much of the time, future prices of precious metals are quoted as the spot price of physical gold. However, this technique isn’t the most accurate gauge of gold or silver prices, as it’s simply where assets could settle in the future.

Although technically inaccurate, many countries base their price of the prompt delivery of precious metals on local futures markets. This means that for retail consumers, the futures price of gold or silver effectively is the spot price.

Precious Metal Spot Price Factors

It’s essential to note that there’s a link between futures prices and spot prices. Due to that association, arbitrage traders work to keep both price types in alignment by watching over a variety of precious metal spot price factors.

• OTC and futures markets are wholesale, which means unlike retail customers, they trade in large quantities. This can impact spot prices during smaller private deals.
• When the precious metals market is moving quickly, dealers might not be able to take the Bloomberg or Reuters price into account, due to bullion banks being unable to update their prices fast enough.
• Both futures and OTC trading comes with general costs, such as dealer salaries and trade settling. Futures trading also incurs dealer brokerage fees.

How individual dealers manage these factors is by adding a margin to the futures or spot prices as they’re quoted. The size of that buffer will vary based on the volatility of the wholesale price and how buying or selling is being done by their clients.

How to Determine “Fair” Spot Prices

The result of the above precious metal spot price factors is an ever-changing price quote from dealers. So, how can you determine a fair price?

Your best bet is to follow the same practice the professionals use themselves, and shop around to see who’s offering the top price when you’re looking to liquidate.

If you plan to find the greatest return on your precious metal investments yourself, you should make sure to keep an eye on Bloomberg, Reuters, and COMEX for spot price updates.

You might also consider getting a hand from a family-owned company that’s been around for almost 40 years. At Manhattan Gold & Silver, we’re happy to show you how to sell your gold and get the biggest return on your investment.

The post What Affects the Spot Prices of Precious Metals? appeared first on Manhattan Gold & Silver.

That’s why ensuring you have a diversified portfolio is crucial to the success of your efforts. Finding that balance is one of the reasons gold continues to shine as an investment option.

Keep reading to find out more about gold vs. stocks when it comes to the right investment opportunity for you.

The Value of Portfolio Diversifying

You might have heard how diverting funds away from a stock portfolio that’s making consistent returns is not a good way to maximize your money-making efforts.

But what happens when there are large market fluctuations? For most investors, portfolio diversification is an excellent option for hedging against serious declines in one asset.

Diversifying your investment portfolio with a well-chosen mix of assets can also lead to strong growth year over year.

Gold as an Investment

This is especially true when it comes to choosing gold as an investment. People have been investing in gold for centuries, and the long-term gains are still attractive to many investors.

Gold as a Defensive Asset

Gold has no maturity date or credit risk, which makes it an obvious choice for many investors looking to diversify.

Historically, gold performs well even when interest rates rise. It’s also a broadly chosen option for offsetting foreign exchange risk.

All of this makes gold an appealing defensive asset choice, but it also offers a solid portfolio growth opportunity.

Gold as a Growth Asset

Over the past 20 years, the World Gold Council has calculated that including gold as 2% to 10% of a portfolio boosted risk-adjusted returns over the long term.

According to the World Gold Council, whether you have a conservative, moderate, or aggressive portfolio, holding up to 10% of gold can result in year-over-year growth.

Stocks as an Investment

While typically seen as a higher risk, investing in stocks also comes with the advantage of higher yields when compared with lower-risk options.

Investing in the stock market requires a much more “hands on” approach than adding defensive assets like gold or bonds. You might want to hire a portfolio manager to keep a full-time watch.

Some investors do have great financial victories by buying the right stocks at the right time. But most tend to benefit from a diverse portfolio with a mix of high-risk and low-risk assets.

Defensive Stocks

The safest stock options tend to involve investing in an entire sector, as opposed to a specific industry or company.

Defensive stocks provide stable and consistent earnings via dividends, even when the overall stock market is in a downturn.

A few of the top defensive stock sectors are energy and utilities, healthcare, financial services, and raw materials production.

Growth Stocks

A riskier choice, but often more profitable in less time, growth stocks usually don’t pay dividends. Your earnings would come through capital gains when shares of the stock are sold in the future.

Growth stocks often look expensive due to trading at a high Price/Earnings ratio, but if the company grows rapidly, you could enjoy a large return when the share price is driven up.

Classic examples of top-performing growth stocks over recent years are Netflix, Apple, and Amazon.

Investing in Gold vs. Stocks

When it comes to deciding whether to put your money into gold vs. the stock market, you should consider whether you’re more interested in avoiding risk or making financial power plays.

You can think of investing in precious metals like gold as acquiring “safe haven” assets. Gold will protect your wealth, even in times of political or economic upheaval.

On the other hand, investing in stocks is a better option when it comes to an opportunity to increase your fortune via capital gains and dividends. Just be sure to keep potential risks in mind.

The Bottom Line on Gold vs. the Stock Market

Whether you choose to invest in gold or stocks, it all comes back to making sure your investment portfolio is diverse enough to serve your best monetary interests now and in the future.

Volatility in the stock market can cause even the most experienced investors to feel worried about their stock gains disintegrating on shaky fiscal ground.

Think of a diversified portfolio as an umbrella against the storms of the stock market. Ensuring you have a combination of stocks and gold will help you to avoid steep investment losses.

Adding Gold to Your Investment Portfolio

Thanks to being highly liquid, physical gold is a convenient and flexible way to balance your portfolio.

Simply choose which gold investment option works best for you:

• Gold bullion bars
• Collectible coins
• Gold jewelry
• Exchange Traded Funds (ETFs)

At Manhattan Gold & Silver, we’re happy to help you get started with adding gold to your investment portfolio. Our certified gold bullion bars offer you a quick and uncomplicated way to add gold to your list of investments today.

The post Should You Invest in Gold or Stocks? appeared first on Manhattan Gold & Silver.

Read on to learn about some of the benefits of investing in precious metals.

1. Low Barrier to Entry

Unlike many investment vehicles that require multiple steps, brokerage accounts, or a lot of red tape, investing in precious metals has a relatively low barrier to entry. The easiest way to invest in these metals is to simply purchase the physical assets in the form of coins, bars (bullion) or even jewelry.

While it’s possible to invest in them through ETFs, mutual funds, stock options or by purchasing shares of precious metals mining companies, the quickest and easiest investment option is the old-fashioned way, in physical form. It’s as simple as purchasing from a dealer, individual or online seller.

2. Tangible

In addition to being easy to purchase, what’s better than being able to hold your investment physically in your hands? Unlike stocks and other investments that you’ll never see beyond the computer screen, precious metals are tangible assets that carry real weight. You can hold them in your hand, store them close by, take them with you wherever you go, pass them down to your children and sell them whenever you want. Furthermore, they’re indestructible and won’t be damaged by fire, water or the passing of time.

Owning physical precious metals means their all yours to do with as you please.

3. Diverse

Investing in precious metals is also a great way to diversify your investment portfolio. Holding different types of assets reduces your risk and the potential impact of negative changes to a single type of holding.

Gold in particular, is a non-correlated asset, which means its value isn’t tied directly to changes in the market. For example, equity markets are easily impacted by the state of the economy and current events; and when interest rates increase, bond prices usually decline. Gold, however, tends to hold its value and be less volatile during market turmoil.

4. Safe Haven

This stability during challenging economic times has earned gold it’s designation as a safe-haven investment. It typically retains and even increases in value during times of economic volatility. A diverse portfolio that includes a safe-haven asset like gold is less exposed during long-term market downtowns, making them a great option for investors.

Unlike other investments, precious metals are unaffected by governmental issues and hold their value on a global scale.

5. Highly Liquid

When it comes time to sell, precious metals are yet again a great asset to invest in because they are highly liquid. They can quickly and easily be exchanged for cash, usually without losing substantial value. And because they are a scarce resource with limited supply, there’s always demand for precious metals. This makes them easy to sell when the time comes.

6. Timeless

While there will always be new and more innovative investment assets to come to the market, precious metals will likely always be valuable thanks to their scarcity, widespread use within various industries and their beneficial investment properties.

The post Benefits of Investing in Precious Metals appeared first on Manhattan Gold & Silver.

But first, a disclaimer: Please don’t take anything here as financial advice. We’re not your financial adviser. Investing is a personal thing, and the best strategy will depend on your individual circumstances and goals. Always seek personalized investment advice from a qualified professional. What we’ve written here is just for informational purposes.

As you’d expect, there are pros and cons to both forms of gold investment. So, we’ve listed some of the advantages of each one to help you better understand the gold bullion versus paper gold debate and get an idea which side you might come down on. Of course, you can always invest in both.

What Is Gold Bullion?

“Bullion” is a form of a metal that’s been refined to a high level of elemental purity. Gold bullion is physical gold—real, tangible gold—and it generally comes in two forms for investors: gold bars and gold coins.

What Is Paper Gold?

Paper gold refers to investment in the gold market without possessing physical gold. This includes investment vehicles like many exchange traded funds (ETFs), gold futures, gold options, and others. It’s an on-paper asset that typically derives its value from the price of gold.

Gold Bullion Versus Paper Gold: Advantages of Holding Physical Gold

Physical gold, or gold bullion:

• Has intrinsic value, unlike paper gold
• Has been accepted as a form of currency throughout history, around the globe, and across cultures
• Is scarce and can’t be replicated
• Is simpler than dealing with paper assets
• Isn’t subject to broker fees, account management fees, etc. like paper investments
• Isn’t vulnerable to mismanagement by third parties like paper assets
• Is easier than paper gold to give as a gift or pass on to an heir
• Diversifies your investment portfolio beyond paper assets
• Can be used as collateral
• Has actual demand for use (e.g., jewelry, decorative pieces, dental fillings, computer and other electronics manufacturing, medals, and more)
• Isn’t part of a country’s financial system (even though gold coins and bars are often minted by government-owned mints), so it’s not vulnerable to the volatility of national financial systems; paper gold is often more vulnerable to volatility resulting from geopolitical issues

Gold Bullion Versus Paper Gold: Advantages of Holding Paper Gold

Paper gold:

• Doesn’t require secure storage (either at home, or at a bank or other facility that will charge a monthly storage fee and likely require insurance)
• Can’t be stolen like physical gold
• Doesn’t take up any space or have to be moved
• Requires less upfront capital because you can generally buy smaller amounts
• Is also more affordable up front because physical gold dealers usually charge significant premiums/fees
• Is a highly liquid investment vehicle that’s easily traded while the market is open
• Isn’t vulnerable to the possibility of a government forbidding the possession of physical gold (it even happened in the U.S., when President Franklin D. Roosevelt signed Executive Order 6102 in 1933, and it held until President Gerald Ford repealed it in 1974)

The post Investing in Gold Bullion Versus Paper Gold appeared first on Manhattan Gold & Silver.

Read on to learn what influences a spot price, elements that can impact the spot price and more.

Spot Price vs. Futures Price

While there are many unique features of spot prices and futures market prices, the primary difference between the two is time, which can have a dramatic impact on price. Spot price is the cost of immediate delivery of the product while the futures price is a contract for payment and delivery of a commodity at a pre-determined future date.

Because the futures pricing plays a role in determining the spot price, it’s important to make that distinction.

What Determines Spot Price?

There isn’t a simple answer to this question, as there are many factors that go into determining the spot price of gold, silver, and other precious metals.

However, gold and silver spot prices are mainly determined by commodity exchanges, including the “London fix” and the U.S. COMEX, where gold and silver are traded mostly through futures contracts. The spot price changes constantly as the markets move throughout the trading day.

What Impacts Spot Price?

Spot prices of precious metals are constantly in flux as many domestic and global market components influence the spot price of gold, silver and others, including:

• Economic data
• Inflation or deflation
• Geopolitical news and events
• Federal Reserve actions
• Equity markets
• Interest rates
• Currencies

When understanding spot prices for the precious metals of interest, it’s valuable to understand the interconnectivity of global markets that all play a role in impacting the day-to-day spot prices of precious metals.

Ready to Sell Your Scrap Metals?

Manhattan Gold & Silver specializes in precious metal scrap made from gold, silver, platinum and palladium. We can help you by determining the precious metal’s value and provide a quick, fair payout when you want to sell your lot.

The post What Is Spot Price? appeared first on Manhattan Gold & Silver.

• Barclays Capital
• HSBC
• Deutsche Bank
• Scotia-Mocatta
• Société Générale

The London Fixing Price is also known as the “London A.M. Fix,” “The London P.M. Fix,” and the “London Morning Fix.”

How The London Fixing Price Operates

The LBMA provides the daily spot fix prices on its website in U.S. dollars, British pounds and euros. The price does not stay the same throughout the morning and afternoon. It begins to vary immediately after the spot fix.

Here are the times the prices are set:

• The LBMA Gold price is determined twice daily at 10:30 and 15:00 GMT.
• The price for Silver is set at 12:00 GMT daily.
• Platinum and Palladium prices are fixed twice daily at 09:45 and 14:00 GMT

The orders sent to the five banks are limit orders, that is, a customer sets the lowest price at which they would like to buy or sell. In other words, if the price of a precious metal opens above the limit purchase order set by the customer, it will not be executed when the market opens.

Since other products are priced in terms of gold, the London Spot Fix is an important factor in daily trading. In addition, many miners and refiners use the gold spot set to price their purchases and receipts.

Sell Your Precious Metal Scrap or Bullion

If you’re looking to sell your precious metal scrap or bullion, be sure to exchange them with a precious metals refiner like Manhattan Gold and Silver. We determine the value of your precious metal using the latest London Fix Prices and get you a fast, fair payout

The post What Is The London Fix Price? appeared first on Manhattan Gold & Silver.

Let’s find out what palladium is and whether you should consider investing in it in 2021.

What Is Palladium?

Palladium is a rare and lustrous silvery-white metal. It was discovered in 1803 by the English chemist William Hyde Wollaston, who coincidentally also found rhodium around the same time.

This precious metal is typically found in South Africa and Russia, with a few deposits located in Canada and the U.S. Only a handful of companies manage the production of palladium globally.

The demand for palladium mostly comes from its use in the automotive industry as a material for building catalytic converters, which are exhaust emission control devices that minimize pollution from cars.

Factors Impacting the Price of Palladium

For anyone giving consideration to investing in palladium, it’s important to consider the following factors driving palladium prices.

1. Supply Problems: The supply deficit for palladium is likely to support higher prices in the future. Russia, a top provider of platinum group metals, is currently experiencing production problems that could significantly contribute to supply narrowness for palladium for the foreseeable future.
2. Automotive Industry Demand: One of the most important factors to keep an eye on is automotive production. Continued demand for vehicles will keep palladium’s value stable or on the rise. This is due to its use in catalytic converters and the fact that it might substitute platinum in converters soon.
3. The Strength Of The US Dollar – A weakening of the dollar could have an impact on palladium prices and precious metals in general. Palladium is usually purchased from suppliers in US dollars. Any devaluing of the dollar could potentially disincentivize top suppliers, which could lead to palladium supply problems and cause a price increase.

Should You Invest In Palladium?

Whether or not you should invest in palladium depends on your investment style. If you’re looking to diversify your portfolio, palladium is very similar to rhodium in that its price volatility could benefit you. However, if you’re not able to take on risks and withstand the volatility of palladium, you should reconsider investing.

If you have any palladium scrap, now is a great time to convert to cash. Be sure to consider exchanging your lot with a precious metals refiner like Manhattan Gold & Silver. We offer quick and fair payouts, ensuring you are getting the best possible deal.

The post Is It Worth Investing In Palladium in 2021? appeared first on Manhattan Gold & Silver.

The post Rarest Precious Metals In 2021 appeared first on Manhattan Gold & Silver.

Why Silver Is So Trendy

Amidst the COVID pandemic, silver had already begun receiving attention from a large audience, even before the #silversqueeze phenomenon triggered on Reddit.

Here are the top reasons driving its popularity:

1. The Industrial Properties of Silver

Even before the spike in prices seen in early February, investors have been friendly to silver due to its industrial properties. While this interest in silver might not cause an immediate increase in value, it will likely show in the medium and long-term timeline. Silver has more potential to outperform gold as it is said its industrial demand will rise 9% from 2020, according to Reuters.

2. Silver Is a Monetary Metal

At its core, silver is a monetary metal and has been used as money for thousands of years.  Even when government fiat currencies devalue, silver and gold tend to hold their value as prices increase in dollar-terms.

3. Silver Is Historically Undervalued

Finally, silver is still historically undervalued compared to gold. To understand why we must understand the silver-gold ratio.

The silver-gold ratio tells us how many ounces of silver it takes to buy 1 ounce of gold. In the modern era, the average has been between 40:1 and 50:1. Gold has always been more expensive than silver, but if the ratio fell below 1 this would no longer be true.

As it stands now, the silver-gold ratio tells us that silver is still undervalued. This means, theoretically, silver is on sale.

Silver Is a Potentially A Good Long-Term Investment

With industrial and monetary values driving the interest behind silver, it’s no wonder why so many are looking at it as a good long-term investment. If you’re interested in investing in silver, consider buying silver bullion and coins at a reputable precious metals refiner like Manhattan Gold & Silver. We sell our bullion at fair prices and offer many options to store investments safely.

The post Why Silver Is Popular In 2021 appeared first on Manhattan Gold & Silver.

If you’re thinking of investing in or selling rhodium, here is an analysis of rhodium and its role in the world economy to help you understand the factors driving up its value as well as some predictions for the future.

Factor #1: Chinese Auto Demand

As the world’s largest market, Chinese economic growth continues to gather strength in 2020. Their auto demand coupled with tightening emissions standards is driving the need for rhodium, which is a key element in the production of catalytic converters that reduce pollutants and toxic gases in exhaust gas.

Factor #2: Rhodium Supply Stoppages

Chinese growth is driving a commodity boom for rhodium. Stoppages at Anglo American Platinum (amplats) have slashed the supply of rhodium by 16% in 2020, according to Reuters. The COVID-19 pandemic will only continue to tighten the market as outbreaks trigger lockdowns in South Africa, the top producer of rhodium. Additional issues such as a lack of reliable energy-generating infrastructure and months-long strikes in South Africa also seriously affect production, so it is important to keep an eye on production there. While rhodium’s price could continue to rise in the near future, its significant premium to palladium and platinum could eventually impact prices and demand.

Rhodium Predictions

Although rhodium is currently experiencing growth, it is important to remember that its prices are historically volatile. As such, miners will still be hesitant to ramp up production for rhodium when its value suddenly changes. Without new production, the supply shortage for rhodium is likely to continue for at least 3 to 4 more years.

It is also predicted the value of rhodium will eventually decline as combustion engines are replaced by batteries to power vehicles, but it is expected for this happen many years into the future.

In Summary

Rhodium is currently experiencing tremendous growth, but it is important to be well-informed about the factors driving its value before deciding to invest in or sell rhodium. Historically, rhodium has been a volatile precious metal to invest in, so do your research on sectors driving its value to see where it might be headed in the future.

The post Why The Price Of Rhodium Is Rocketing To Record Highs In 2021 appeared first on Manhattan Gold & Silver.