Spot Price
Definition
The spot price is the current market price to buy or sell one troy ounce of a precious metal for immediate settlement. It is quoted continuously during trading hours and serves as the baseline for nearly all gold and silver transactions.
Spot price is the reference figure that dealers, refiners, and exchanges start from before any markups are added.
Why it matters
Almost every physical purchase is priced as spot plus a premium. Knowing the spot price lets you judge whether a dealer’s quote is reasonable and compare offers on the same footing. It also moves throughout the day, so the number you see in the morning may not match an afternoon order.
In practice
Spot reflects large, standardized wholesale trades, often in the futures and over-the-counter markets. When you buy a coin or bar, you pay spot plus a premium that covers fabrication, distribution, and the dealer’s margin. When you sell, you typically receive spot minus a small spread.
Common confusion
Spot price is not the price you pay for a physical coin. It is a wholesale benchmark. The retail figure will be higher because of the premium over spot, and the buyback figure will usually be a bit lower.