Understanding the Gold Spot Price
In simple terms, the gold spot price acts as the primary method for determining the current value of one troy ounce of physical gold bullion. This dynamic price discovery mechanism is essential in establishing the market price for gold.
The spot price is what is commonly called “the gold price”. This price varies from marketplace to marketplace and depends on the currency type one is using when referencing the gold price. For example, in the United States, the gold price is referenced by-the-ounce, in US dollars. The most commonly referenced spot price is “the gold futures market price”, and in particular, the COMEX, which is a commodities contracts market for people buying and selling gold in quantity in the United States.
The spot price of gold is not the complete price of gold. A number of factors go into how much it actually costs to get an ounce of gold in-hand, in addition to the spot price. For example, a refiner or private mint may buy gold in 100-ounce bars on the COMEX futures market in order to make generic, in-house gold bars & rounds, and those factors must be accounted for in determining the gold price set by that individual refiner or mint. The bottom line is the price of gold, as shown in the price ticker that scrolls along an arbitrary screen, is not the same price one actually pays to buy gold from a seller.
Understanding the Silver Spot Price
Like gold, silver has a spot price. Silver prices change quickly during worldwide trading hours, often from minute to minute and certainly from hour to hour.
Knowing the current silver spot price should help ensure that you’re able to make savvy decisions with your investing, whether you are holding, selling, or buying silver bullion for the long run.
The spot price of silver is the cost of one troy ounce of silver at that particular second. However, the silver spot price is not the actual or exact price of a .999 fine ounce of physical silver bullion. Silver bullion dealers add a slight premium to the spot price to ensure profitability. Our physical silver bullion prices are updated continuously to reflect the current rate of silver on the market, as well as our dealer premium.
To dig deeper into this topic go to our FAQ library: Who sets the price of silver and how is it determined?
Understanding the Platinum Spot Price
Like the price of gold and the price of silver, the price of platinum is priced in troy ounces. However, this is not the standard ounce to which most of us are accustomed. Platinum is sold by the troy ounce (slightly lighter than the standard ounce). The platinum spot price is simply the price of one troy ounce of platinum at that particular time. With that being said, you will not pay this price of platinum if you are buying the metal.
Many different factors affect platinum prices. These range from supply and demand, to geopolitical concerns, the worldwide economy itself and even the value of major currencies. Platinum is also an industrial metal – it’s used in many different capacities, even in the automotive segment, where it’s valuable in the manufacturing of catalytic converters.
Each factor will push the platinum price up or pull it down, and savvy investors learn to look at historical platinum prices in order to learn how to predict trends. This knowledge informs their buying and selling, allowing them to create a hedge that protects their wealth during economic downturns.
Understanding the Palladium Spot Price
Just like the gold spot price, the platinum spot price, or the ongoing silver spot price… the palladium bullion market has a palladium spot price too.
This palladium spot price is the over the counter cost of one troy ounce of pure .999 fine palladium bullion at that particular moment typically measured in fiat US dollars. The palladium spot price is a key input for final retail or wholesale palladium bullion product prices ongoing.
Since this value of palladium spot prices fluctuates with time, it is an invaluable factor to consider when making palladium bullion investments.
However, the palladium spot price is not the exact going rate of an ounce of palladium when you buy palladium bullion products.
Palladium bullion dealers and the palladium mints (e.g. US Mint, Royal Canadian Mint, etc.) who make palladium bullion products both usually charge a palladium bullion product premium added to the ongoing palladium spot price to maintain their operating businesses.