As a bullion dealer, you need prices to be accurate when sharing that data with potential buyers and sellers via your gold price API. You know very well how fast prices can change in the commodities markets, and gold is no exception to market volatility.
Find out why you need highly accurate information as you disseminate current gold prices.
Intraday Trends Can Change Rapidly for a Gold Price API
Perceptions in the global economy can change rapidly on any given day based on severe weather, geopolitics, earnings reports, labor reports, and more. Gold prices are often a part of the perception about whether they are a good investment on a daily basis. Your gold price API can incorporate this data to give your clients a relevant way to buy or sell their assets at any given time.
For example, the gold futures market dropped about $25 per ounce on July 27, 2023. Someone owning 12 coins would have lost $300 on that day. However, dealers might have investments in 100,000 coins. They would have lost $2.5 million in that investment if they chose to sell on that day and if someone had a buyer.
Of course, the long-term strategy is to hold onto that investment until it pays off. But price accuracy is still vital to making money.
You Need Updated Information for Investment Decisions on a Gold Price API
Investors need updated information to decide whether to buy or sell. The wrong, slow, or outdated information can be costly for anyone within the transaction.
For instance, a gold price API displays a price of $2,000 an ounce. But 30 minutes ago, major markets saw it spike to $2,050 an ounce based on a hurricane closing several ports where oil shipments were delayed. Again, over the course of bulk purchases of gold, that $50-an-ounce mistake can cost millions.
Gold Price APIs Must Source Data Properly
Your gold price API is only as good as the source material. The API must display accurate data from exchanges in as close to real-time as possible. And gold markets never sleep, with the three top exchanges in the United States, London, and Shanghai.
We get our sourcing from two data exchanges, so there isn’t a single point of failure. If one goes down, the other steps up. We know that data is very hard to source accurately, which is why we do a lot of the legwork internally. We assess weighted averages on different contributors and data sources and cease doing business with any of them that fall below our high standards.
Gold Price APIs Can Never, Ever Have Faulty Data
If you have a gold coin that’s worth $2,000 and you’re trying to sell it, your timing must be right. In five minutes, the price might jump from $2,000 to $2,100. But your feed still says $2,000. You just lost $100 because commodities prices can change dramatically and quickly. This example is extreme but illustrates how rapid fluctuations can occur.
However, when you shorten the price differential but increase the amount of gold you own, this problem worsens if your gold price API is inaccurate. Let’s say you’re a dealer who has invested in 100,000 of those coins. And your gold price is off by 50 cents. You could potentially lose $50,000 on that investment with “just” a 50-cent difference in the price per ounce.
Partner With a Highly Accurate Gold Price API That Really Works
Investing in precious metals carries some element of risk, and these commodities markets are notoriously volatile. Small fortunes can be gained or lost in just a few minutes.
Don’t pay for cheap alternatives to a highly accurate gold price API because it’s very costly to have incorrect data. Some feeds you’ll see don’t work and are completely unreliable.
How much are you paying for your (wrong) feed? Can you afford a feed that’s 30 minutes behind the markets? You get what you pay for. Our gold price live feed is a valuable tool to add to your e-commerce business tools. You’ll stay competitive while providing real-time and accurate information. And, with nFusion Solutions, getting a live feed up and running is easy and hassle-free with a 14-day free trial.
Contact us today to maximize your profits and grow your business.