Spot Rate
Also: Spot price, Cash price, Spot rate
The spot rate is the currently valid market price of a precious metal for immediate delivery and payment, also known as the spot price.
The spot rate (spot price) denotes the price at which a precious metal is traded immediately on the spot market - that is, for purchase, sale and physical or book-entry delivery within the shortest period (usually two business days, T+2). It is the reference price par excellence and forms the basis for bar and coin prices, dealer calculations and the valuation of gold ETFs and structured products.
You always see the current gold price and silver price on this site as a spot rate in real time.
How does the spot rate arise?
The spot rate forms continuously in the OTC market (over the counter) through supply and demand between banks, refineries, central banks, funds and large industrial buyers. For gold and silver, the LBMA sets the so-called LBMA Gold Price fixing twice daily as an official reference value; between the fixings, however, the spot rate fluctuates freely.
Spot rate (mid) = (bid price + ask price) / 2
Dealer price = spot rate x fine weight x exchange rate + premium
The dealer buys precious metal at the bid price and sells at the ask price. The difference is called the spread; it covers trading and storage costs.
Spot rate vs. futures price
| Feature | Spot rate | Futures price |
|---|---|---|
| Delivery | T+2 (immediate) | Fixed maturity month |
| Trading | OTC, 24/5 | COMEX, exchange hours |
| Reference | LBMA, Reuters | CME/COMEX settlement |
| Surcharge | - | Contango (usually) or backwardation |
If the futures price is above the spot rate, this is called contango; if it is below, backwardation.
Exchange rate influence
Because gold and silver are quoted worldwide in US dollars, the euro spot rate depends on two variables: the dollar spot price and the EUR/USD exchange rate. If the dollar rises, the euro spot rate falls - even if the dollar spot price remains unchanged. You can find current exchange rates on this site.
Practical significance
- Bars and coins: dealers add a premium (agio) to the spot rate, covering minting, storage and margin.
- Melt value calculation: the basis for the melt value calculator is always the current spot rate multiplied by the fine weight.
- Tax and holding period: whether a gain from precious metal sales is taxable depends on the applicable law. In Malta, no capital gains tax is levied on the private disposal of movable assets such as precious metals; Maltese CGT applies only to specific assets (immovable property, securities, business interests). Not tax or investment advice.
Key takeaway
The spot rate is the universal benchmark of the precious metals market: anyone who knows how it arises and how premiums are built on top of it can compare offers from different dealers quickly and objectively.