Such is the demand for physical gold in the current market – the Financial Times yesterday reported that there was a “growing global shortage of gold bars” – that our gold provider has responded by increasing the spread in gold pricing.
The spread in price today has ranged from 4.1% to 5.9%. The graph below shows the buying price for gold (in green) and the selling price (in red). This is highly unusual – typically the “spread” (the difference between the sale and purchase price) is almost the same.
The volatility in the “spread” is a direct result of the turmoil in financial makets.
Glint has therefore been forced to buy our gold at the market price available, while retaining our 0.5% fee.