Are you considering buying gold as a means of savings? It's a wise decision, especially if you're looking to buy gold bars. But how can you tell if a gold bar's price is fair? And how can you understand the difference between gold prices and gold manufacturing costs?
We wrote this simple guide for anyone who is new to saving in Saudi Arabia.
What affects gold prices?
Globally, gold prices are influenced by the global economy and monetary policies, as well as the US dollar and major geopolitical events. Locally, the most important factor affecting the price of gold, and the price of gold bullion in particular, is supply and demand.
Understanding the Basics of Gold Bullion Price
Purchasing gold requires a solid understanding of the pricing process, especially the price of a gold bullion. The price of gold isn't limited to its raw price; gold manufacturing costs are a very important factor to understand before purchasing.
How does gold manufacturing affect the price of a gold bar?
Gold manufacturing costs are added to the price of raw gold, increasing the final cost of the bar. When comparing the price of a gold bar, compare the manufacturing costs between dealers, as they vary from piece to piece. Always look for a fair manufacturing cost; this will save you money.
What is gold manufacturing and why does it vary from one piece to another?
Gold manufacturing refers to the cost of manufacturing, including shaping and engraving fees. It varies depending on the weight, type, and design of the ingot. The heavier the ingot, the lower the manufacturing cost, and it is less for larger ingots.
How do you determine a fair price for buying a gold bar in Saudi Arabia?
- Compare gold prices across reliable sources.
Don't rely on just one source for prices. Compare gold prices across multiple trusted dealers. It's crucial to ensure the dealer's reputation and reliability. You can track gold prices through the Ruby store, which offers competitive prices with complete transparency and is a trusted source in Saudi Arabia .
- Total cost calculation
A fair price is the price of raw gold plus the gold manufacturing cost, plus any additional fees the dealer may disclose. Ask for a full price breakdown. This is the only way you can determine the true price of a gold bar and avoid any unexpected or unpleasant surprises.
When is the right time to buy a gold bar?
There is no fixed time, but you can find out the ideal time to buy by:
- Monitor gold prices and identify times of price decline.
- Buy when the difference between the price of the gold bullion and the market price is low.
- Avoid seasons when local demand is high, as prices and shipping costs are higher.
If you're planning to save on gold, don't wait. Start tracking gold prices now and monitor daily changes in the price of gold bullion to make more informed and confident decisions. Browse the various bullion options available in different weights and sizes through Ruby's store today here .