Spot Price
Also: Spot, Cash price, Loco-London price
The spot price is the current market price for immediate delivery of one troy ounce of a precious metal — the basis for almost all buying and selling prices.
The spot price (from English spot = "on the spot") is the price for the immediate delivery and payment of one troy ounce of a precious metal on the world market. It is the central reference used by dealers, banks and refineries — and therefore the basis for almost every buying and selling price.
How the Spot Price is Formed
Trading takes place around the clock in the so-called Loco-London market as well as on futures exchanges such as the COMEX in New York. The spot price results continuously from supply and demand and changes every second. It is typically quoted in US dollars per troy ounce. The current exchange rate EUR/USD is added to arrive at the euro price — which is why the gold price in euros can rise even when it is falling in dollars (and vice versa).
Spot vs. Actual Purchase Price: the Premium
You never pay exactly the pure spot price when buying physical goods. On top of it comes a premium (agio) for minting, distribution and dealer margin. When selling, the buying price conversely tends to be somewhat below spot. The difference between buying and selling prices is called the spread. As a rule of thumb: the premium is small for large bars, and higher for small denominations and popular bullion coins.
Spot vs. LBMA Fixing
Alongside the second-by-second spot price, there is the LBMA fixing — a reference price determined twice daily (gold) or once daily (silver) that is used for large transactions and contracts. On this page you can switch between Spot and LBMA Fix as data sources using the toggle at the top right.
Using the Spot Price Correctly
- Current quotes can be found on the gold price and silver price pages — live and in chart form.
- The trend over months and years is shown on the historical precious metal prices page.
- The price ratio between the metals is measured by the gold-silver ratio.
Key Takeaway
The spot price is the "bare" world market price per troy ounce. Anyone buying physical metal pays spot plus premium; anyone selling receives spot minus discount. A glance at the spot price and the exchange rate explains almost every price movement observed in everyday life.