Spot Price
Also: Spot, Cash price, Loco London price
The spot price is the current market price for the immediate delivery of one troy ounce of precious metal – the basis of 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 precious metal on the world market. It is the central reference to which dealers, banks and refineries orient themselves – and thus the basis for almost every buying and selling price.
How the Spot Price Arises
Trading takes place around the clock on the so-called Loco London market as well as on futures exchanges such as COMEX in New York. The spot price results continuously from supply and demand and changes by the second. It is usually quoted in US dollars per troy ounce. For the euro price the current EUR/USD exchange rate is added – 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 the dealer's margin. When selling, the buying price is conversely usually somewhat below spot. The difference between purchase and sale is called the spread. Rule of thumb: for large bars the premium is small, for small denominations and popular investment coins it is higher.
Spot vs. LBMA Fixing
Alongside the second-by-second spot price there is the LBMA fixing – a reference price determined twice (gold) or once (silver) daily, to which large transactions and contracts orient themselves. On this page you can switch between Spot and LBMA Fix as the data source in the top right.
Using the Spot Price Correctly
- Current quotes can be found on the pages for the gold price and silver price – live and in the chart.
- 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.
In Brief
The spot price is the "bare" world market price per troy ounce. Anyone buying physically pays spot plus premium; anyone selling receives spot minus a discount. A look at the spot price and the exchange rate explains almost every price movement you observe in everyday life.