Gold Price Per Gram and Troy Ounce in GBP

Gold Price Charts

Our live and historic gold price charts record the price of gold from the latest Spot Price to historic records stretching back over 50 years.

The live price or Spot Price chart is updated every 5 seconds and displays the current global price of gold being traded ‘for immediate payment and delivery’. These prices are being influenced by live transactions and will therefore fluctuate constantly.

Historic gold price charts are based on The London Bullion Market Association (LBMA) Fix prices which are set twice for each day that the London market operates.

By referring to our Gold Price Charts you can monitor the movements in the market, track the value of any gold investments and decide on the optimum time to buy or sell gold.

We use the same data that drives our Gold Price Charts to determine the prices of gold coins and gold bars listed for sale on our website. This ensures that our customers always get the very best prices in line with movements in the gold market.

Who Sets The Price of Gold?

Whilst the live Spot Price is an aggregated data feed of the gold price used in live transactions in global markets, it tends to be directed by the Gold Fix Price or London Fix. As London was historically the global centre for the gold market, the London Gold Market released a daily market price from 1919. By 1987 there was a need for an independent body to oversee the process and the London Bullion Market Association was formed. The LBMA now releases two gold price Fixes on each trading day, one at 1030am and a second at 3.00pm to coincide with the opening of the US markets. The price is released in $USD as the US currency is quoted globally for gold prices. Since 2015 ICE Benchmark Administration (IBA) supervises the price setting procedure which is essentially similar to an online auction process between sixteen global financial companies and banks.

What Influences The Gold Price?

Gold is a commodity and commodity prices tend to be driven by supply and demand. Hence demand for gold, and the price of gold, will rise due to events such as the Indian wedding season or Chinese New Year. During the summer months, when many investors or collectors are on holiday, demand and therefore the price, may fall. The underlying market is also increasingly supported by modern industrial demand from the electronics and medical equipment industries.

Traditionally, gold is known as a ‘Safe Haven’ asset by investors and the price of gold tends to rise when other asset classes fall, usually at times of economic or geo-political turmoil and unrest as investors move capital into gold, creating demand which then drives up the gold price.

Other factors which can affect the gold price are the state of the US Dollar and Stock Market performance.

Gold is priced in $USD, primarily because the US Dollar is currently accepted as the settlement method for global trade. All countries then produce their local gold price according to their own currency’s exchange rate with the US Dollar. This means that local prices are subject to distortion by fluctuating currency exchange rates. For example, in the UK the price of gold in £GBP rose steeply following the Brexit referendum result in 2016 but this was primarily because the value of the £GBP fell against the $USD making gold more expensive to buy in £GBP. This same effect will also apply as the strength of the $USD fluctuates over time. A ‘strong’ Dollar makes gold more expensive to buy in other currencies, leading to a reduction in global demand. Reduced demand leads to price reductions so as the Dollar gets stronger, the price of gold in $USD should get lower. A ‘weaker’ Dollar would lower the price of gold in other currencies, creating increased demand which would then push up the price of gold in $USD.

Stock Market performance is often linked to movements in the gold price. If Stock Markets fall substantially there is usually a corresponding increase in the gold price as ‘Safe Haven’ demand pushes up prices. During a rising Stock Market, gold prices often fall as investors chase additional income opportunities in the market by transferring out of gold and in to stocks and shares. Since gold ownership does not produce an income, a similar effect is sometimes seen when interest rates rise making cash deposits a more profitable proposition than gold ownership. This transfer of wealth from gold to cash reduces demand for gold and lowers the gold price.

Why Buy Gold?

Many people purchase Gold as an investment because of its inherent and intrinsic value, which has seen it weather many previous financial crises relatively unscathed. Gold bars and Gold coins have been the foundation of global economies for centuries and have a history of use stretching back thousands of years.

The huge variety of Gold coins available from mints around the world also appeals to collectors who enjoy combining an investment with a hobby and learning about the background to the many different gold bullion coins available.

Gold also benefits from being VAT exempt and certain gold coins are capital gains tax free in the UK which can be appealing for investors of larger sums.

Following the recent financial crash many people are keen to remove a proportion of their wealth and assets from the custody and control of the banking system. Many ordinary people are desperate to ensure that their mid to long-term investments survive in the face of a procession of bank bailouts and national debt. Whilst it is true that ownership of gold will not provide an income, what it has done consistently over recent years is to preserve and grow wealth due to rises in the gold price whilst being outside of the banking system.

Which Gold to Buy?

There is always a wide choice of gold bars and gold coins available to the collector and investor but each product will have a ‘fashion charge’ built in to the price to cover production costs and packaging. The fashion charges can vary considerably between minted coins, minted bars and cast bars.

Minted coins not only tend to attract the highest fashion charges but can also attract additional premiums in addition to the gold price due to their collectability. However, UK Legal Tender gold coins are Capital Gains Tax Free in the UK, making the gold Sovereign, and particularly the gold 1oz Britannia especially popular with larger investors, despite slightly higher purchase prices.

Minted bars will have a higher fashion charge than cast bars and as the production cost for a bar is consistent, whatever its size, larger cast bars are usually the most cost effective way to buy based on gold price per gram.

A major consideration should be the likelihood or otherwise that you will need to sell or liquidate your asset at some point in the future. For example, if your purchase consists of a single large bar you will be unable to release only a small part of its value to cover an unexpected expense. It may therefore be wiser to invest your chosen amount into several products which have individual values that more closely match your likely requirements in the event of future financial need. This strategy lessens the risk that a substantial asset would need to be sold when the current price of gold is not at an optimum level.

Need Any Help?

If you are new to the concept of gold ownership you may find our Learning Centre to be helpful.

Feel free to call us on 0800 090 3256 if you need and assistance, our Customer Service Team are here to help.