There is no concept of "geolocation" in the IP protocol. IP geolocation is not locating an IP address in real time, which would imply that the coordinates update when I move my router (which has no GPS chip). It is about querying a database to find you what location this database gives to your IP address.

In most case, the geolocation is given by IP ranges, not by single IP addresses, so the geolocation is the geographical center of the region over which the IP pool is deployed.

The geolocation is as accurate as this database is built, and how often it is updated, especially when IP ranges can be sold from companies in a country, to a company in another country.

How this database is built? Different methods are explained here: https://en.wikipedia.org/wiki/Internet_geolocation#Data_sources

With smartphones, it really became easy to link IP address with actual GPS coordinates.

For anyone believing he can find the IP address of an IP address, I would like him/her to tell me what is the geolocation of an anycast IP.