Price on receipt higher than expected

LuongLuong Posts: 3 Tin ✭
Hello everyone!

I have just recently joined the Gold Money community, and I am excited to be here.

My question is about the price at the time of deposit shown on my transaction receipt. The price shown on the dashboard 60 seconds prior to confirming my transaction was US $40.75/g. On my transaction receipt it states $41.30. By my math it should be $41.16 ($40.75 + $.41(1% fee) = $41.16. I verified on Gold Money's Live Chart that the price did not go above $40.76.
Am I missing something here?

I appreciate your help, thanks.

Answers

  • LuongLuong Posts: 3 Tin ✭
    edited October 2016
    I found this in the support files:

    "If the Best Bid on gold per gram is 36.3786 and the Best Offer per gram is 36.5425, the Average BBO at that moment would be 36.4606. The spread in this case is 0.1639. "

    Isn't the Average BBO represented on the Dashboard widget?
  • R3al_WorldR3al_World Posts: 18 Tin ✭
    I think it very possible that the actual trading price of gold is used at the exact time of deposit.
  • Mr_Troy_OzMr_Troy_Oz Posts: 79 Copper ✭✭
    edited October 2016
    Welcome aboard @Luong,

    Your math is correct in regards to calculating the 1% of Goldmoney's posted 'spot' price.
    What they forget to tell people is, (and I believe this to be correct without any posted confirmation), that they charge in addition, the spread between the Best Bid and Best Offer price.

    As they do not post the bid & offer prices on their page, you'd need to have a third party app on screen to determine the price spreads.
    Generally though, a 'deposit' will work out to about 1.2% to 1.4% of the quoted spot price. Not the flat 1% as one might have expected.

    Why this additional cost is not disclosed within their literature I don't know! Some people here suggest the small differences are not worth discussing.
    - But the upside in all this to my knowledge is, Goldmoney is still the most cost effective way to buy and sell gold anywhere on the Web.

  • Mr_Troy_OzMr_Troy_Oz Posts: 79 Copper ✭✭
    edited October 2016
    @Luong In regards to Bid and Ask quotes, try comparing Kitco's live quotes with Goldmoney's dashboard quotes.
    Goldmoney's quotes are stated to be the 'average between all their vaults'.
    When I compare GM's 'averaged quote' on the dashboard with that of Kitco, I find that GM's 'averaged' quote is nearly spot-on to Kitco's "Ask price",
    ..or often higher.. by a few pennies or so.

    Kitco link >> http://www.kitco.com/charts/livegold.html
  • Mr_Troy_OzMr_Troy_Oz Posts: 79 Copper ✭✭
    @Luong Better yet, for live Bid/ Ask quotes in all Currencies try: http://info.sharpspixley.com/
  • MelanieMelanie Posts: 1,045 Gold ✭✭✭✭✭
    @Mr_Troy_Oz - regarding your mention of

    What they forget to tell people is, (and I believe this to be correct without any posted confirmation), that they charge in addition, the spread between the Best Bid and Best Offer price.

    We do not charge the spread between the Best Bid and Offer, thus we would not advise users that we do so. You can click here for a breakdown of how pricing works.

  • LuongLuong Posts: 3 Tin ✭
    Thank you all for your responses!

    @Melanie I have read the support article on pricing, and I understand now that the live price tool does NOT tell me how much I am paying per gram when I deposit money.

    "Our Live Price tool is updated in real time with the price per gram of gold at that moment in your preferred currency. Instead of quoting the Bid or Ask price we display the Average BBO (Best Bid or Offer). This is not the price you will purchase or sell gold at, instead it is the equilibrium price of gold at that moment."

    So my question now is, how do I know what the equilibrium price is at the time of purchase? The definition of equilibrium price is absent from list in the support article. I agree that the prices to purchase gold here are lower than other sites; however, total transparency would be ideal.
  • MelanieMelanie Posts: 1,045 Gold ✭✭✭✭✭
    @Luong The equilibrium price is the same as the average price - when averaging two numbers, the equilibrium and average are synonymous. This means that the equilibrium price is the live price per gram you see displayed on your Dashboard.
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