What is spot price?
The spot price is the current market price for one troy ounce of pure gold or silver, traded in large amounts between banks, refiners and big dealers.
Where the number comes from
Gold and silver trade almost around the clock, from Sunday evening to Friday afternoon (U.S. time), on markets in New York, London, Zurich, Shanghai and elsewhere. The spot price you see on sites like this one follows that trading and changes every few seconds while markets are open. On weekends, prices mostly stand still.
Troy ounces are not kitchen ounces
Precious metals are weighed in troy ounces. One troy ounce is 31.1035 grams. A regular (kitchen) ounce is only 28.35 grams. If you weigh jewelry on a kitchen scale set to ounces, your number will be about 10% too low for gold math. Grams are the safest unit to use.
| Unit | Equals |
|---|---|
| 1 troy ounce | 31.1035 grams |
| 1 kilogram | about 32.15 troy ounces |
| 1 gram | about 0.0322 troy ounces |
Why you can't buy at spot
Spot is a wholesale price for large amounts of pure metal. When you buy a coin or bar, you also pay for making it, shipping it, insuring it and the dealer's business costs. That extra amount is called the premium. When you sell, a dealer usually pays a little below spot. The gap between what dealers sell for and what they pay is called the spread.
Spot price for items that aren't pure
Spot is for pure metal. A 14 karat gold ring is only 58.5% gold, so the gold in it is worth 58.5% of what the same weight of pure gold would be. Our melt value calculator does this math for you.
Not financial advice. This guide is general information. For tax or investment decisions, talk to a qualified professional.