Every time you see a gold price quoted on a financial news channel, a bullion dealer’s website, or our live dashboard, you’re seeing the spot price. It’s the most fundamental number in precious metals — the reference point for every buy and sell transaction in the world. But what exactly does it mean, how is it set, and why does it differ from what you’ll actually pay at a dealer?
What “Spot Price” Actually Means
The spot price is the current market price for immediate delivery of one troy ounce of a metal. “Immediate” is a term of art here — in commodity markets, it means settlement within two business days. The spot price reflects the most current global consensus on what gold (or silver, platinum, or palladium) is worth right now.
The spot price is a wholesale benchmark. It’s the price at which large institutions, banks, and refiners transact in bulk. When a central bank buys 100 tonnes of gold, the price is derived from spot. When a jewelry manufacturer orders 1,000 oz, they reference spot. The retail premium you pay as an individual buyer sits on top of spot.
How the Spot Price Is Determined
COMEX Futures Market
The primary driver of the gold spot price is the COMEX futures market, operated by the CME Group in New York. COMEX trades gold futures contracts — agreements to buy or sell a standardized quantity of gold at a specified future date. The most actively traded “front month” contract price is what’s typically quoted as the spot price in the US.
COMEX trades from 6:00 PM to 5:00 PM Eastern time Sunday through Friday (with a 1-hour break daily), giving the market nearly 23 hours of daily activity. During off-hours, the price is typically driven by Asian markets, particularly the Shanghai Gold Exchange and Tokyo Commodity Exchange.
The LBMA Gold Price (London Fix)
Twice daily, at 10:30 AM and 3:00 PM London time, the LBMA (London Bullion Market Association) conducts an electronic auction that produces the “London Gold Price” — formally called the LBMA Gold Price. This is used as the benchmark for many physical contracts, mining agreements, and institutional transactions worldwide. It’s distinct from the continuous COMEX price but closely tracks it.
Why Dealer Prices Differ from Spot
If you walk into a coin shop today and ask to buy a 1 oz American Gold Eagle, you will not pay the spot price. You’ll pay spot plus a premium — typically $150–$250 per ounce at current prices. That premium covers:
- Fabrication and minting: The US Mint charges dealers a premium over spot for Eagles; that cost passes through
- Transportation and insurance: Moving physical gold safely costs money
- Dealer overhead and margin: The dealer’s operating costs and profit
- Supply/demand dynamics: When retail demand spikes (like during the COVID crash), premiums can double or triple temporarily
| Product | Typical Premium Over Spot | Notes |
|---|---|---|
| Gold bar (1 kg, reputable refiner) | 0.5–1.5% | Lowest premium; less convenient to sell in pieces |
| Gold bar (10 oz) | 1–2% | Good balance of premium and size |
| Gold bar (1 oz, PAMP, Perth Mint) | 3–5% | Most popular retail size |
| American Gold Eagle (1 oz) | 5–8% | Legal tender; highest liquidity; highest premium |
| Canadian Gold Maple Leaf (1 oz) | 3–6% | Very liquid; lower premium than Eagles |
| Silver bars (100 oz) | 3–6% | Best per-oz cost for silver |
| American Silver Eagle (1 oz) | 15–25% | Highest liquidity silver coin; highest premium |
How to use our calculator: Enter your quantity and a dealer premium percentage in our cost calculator to see your exact all-in cost at today’s spot price. The “typical 2–5%” default covers most gold bar purchases — adjust upward for coins.
Spot Price vs. Ask Price vs. Bid Price
When a dealer quotes you prices, they’ll use two numbers: the ask (what they’ll sell for) and the bid (what they’ll buy for). The spread between them is their margin. The “spot price” sits somewhere in the middle. A transparent dealer will show you exactly how their ask price is calculated relative to spot.
When you sell gold back to a dealer, you’ll receive the bid — typically spot minus 1–3%. This buy-sell spread is the dealer’s gross margin on a round trip. It’s why gold is generally a medium-to-long-term hold; you start the transaction slightly underwater from the bid-ask spread and need appreciation to overcome it.
Why Silver Premiums Are Higher Than Gold (Percentage-Wise)
Silver premiums are typically higher as a percentage of spot than gold premiums. A 15–25% premium on an American Silver Eagle is much higher than the 5–8% on an American Gold Eagle, even though the dollar amount per ounce is smaller. This is because the fixed costs of minting, handling, and selling a small-value coin don’t scale proportionally — it costs almost as much to process a $33 silver coin as a $3,300 gold coin.
Frequently Asked Questions
See the current spot price — updated every 60 seconds
Our live dashboard shows gold, silver, platinum, and palladium spot prices alongside the gold-silver ratio and price history charts.