RE: Gold at all time high .27 Aug 2025 07:34
Morning addicknt, you are correct, as usually high worth companies have narrow spreads.
I feel that the main reason we have a tight spread is because we have liquidity through volume.
Hasn't always been the case.
However it's because the liquidity in the past has kept our share price low.
As very hard to take up shares with low volume.
However we now have both liquidity and volume.
So as liquidity decreases we should see a wider spread and this will mean that we eventually see higher prices if volume remains.
However when the spread widens, it usually decreases volume and this in turn solves the liquidity problem.