WHAT IS SPOT PRICE?

Spot price is the current market price of a precious metal, such as gold, silver, platinum, or palladium. It represents the value of the metal itself at a specific point in time and is generally quoted per troy ounce.

Because precious metals are traded on global markets, spot prices can change throughout the day as buyers and sellers respond to market conditions. In much the same way that a stock price moves throughout the trading day, the spot price of gold or silver can rise or fall continuously.

IS SPOT PRICE THE PRICE I PAY?

Not usually.

When purchasing physical precious metals, such as a gold bar or silver coin, the final price is typically spot price plus a premium.

The premium is the amount added to the underlying value of the metal and can reflect costs associated with refining, minting, manufacturing, transportation, distribution, and dealer margins. Premiums can also vary based on the specific product, quantity purchased, availability, and current demand.

For example, if gold has a spot price of $3,500 per ounce, a one-ounce gold bar will generally cost more than $3,500 because of the premium associated with that physical product.

WHAT CAUSES SPOT PRICE TO CHANGE?

No single company or government sets the spot price. It is shaped by trading activity and market conditions around the world.

Factors that can influence precious metal prices include:

• Supply and demand

• Inflation and economic conditions

• Interest rates

• Currency movements

• Geopolitical events

• Futures market activity

• Investor sentiment