Bid and Ask
Posted: Tue Feb 28, 2012 5:12 pmCan someone explain difference in the "bid" adn "ask" prices listed on Kitco?
Unless I'm missing something, that is it!
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Posted: Tue Feb 28, 2012 5:12 pmRe: Bid and Ask
Posted: Tue Feb 28, 2012 5:17 pmBid is what someone has offered to BUY at and Ask is what someone is willing to SELL at.
Unless I'm missing something, that is it!
Unless I'm missing something, that is it!
Re: Bid and Ask
Posted: Tue Feb 28, 2012 5:22 pmGold and silver are traded on the Comex Exchange where this prices come from.
Buyers of Gold and silver 'bid' a price for a contract and sellers 'ask' a price for a contract.
For Example if a buyer 'bids' a price of $35 a ounce, a seller may choose to take that price. Or a seller may say 'even thought your bid is $35/oz, I want $35.25 an ounce, take it or leave it'.
This Creates a bid of $35 and an ask of $35.25. The spreads never really extend too much farther than that unless its a thinly traded market like Palladium or Platinum.
This determines the price moves in Gold and Silver. An increase of buyers will push prices up and vice-versa.
The spread is usually a like 10 cents to a $1 so it doesnt really matter for the most part for bullion purchases. Some dealers may use the bid price when buying and ask price when selling, but 90% of dealers universally use the Bid price as 'typical spot'.
Buyers of Gold and silver 'bid' a price for a contract and sellers 'ask' a price for a contract.
For Example if a buyer 'bids' a price of $35 a ounce, a seller may choose to take that price. Or a seller may say 'even thought your bid is $35/oz, I want $35.25 an ounce, take it or leave it'.
This Creates a bid of $35 and an ask of $35.25. The spreads never really extend too much farther than that unless its a thinly traded market like Palladium or Platinum.
This determines the price moves in Gold and Silver. An increase of buyers will push prices up and vice-versa.
The spread is usually a like 10 cents to a $1 so it doesnt really matter for the most part for bullion purchases. Some dealers may use the bid price when buying and ask price when selling, but 90% of dealers universally use the Bid price as 'typical spot'.