Speak to a non-commission broker TODAY!
Are you ready to invest in precious metals but don’t know where to begin? One of the most important first steps is learning the terminology—especially what “spot price” means. Knowing how spot prices work empowers you to confidently compare dealers, recognize fair pricing, and make the most of your investment. Let’s start by breaking down this essential concept so you can shop with clarity and confidence.
Precious metals are a commodity and as such are traded on the market. The “spot price” is simply the current market price for a precious metal—like gold, silver, platinum, or palladium. It is similar to the standard stock market ticker- its live, current prices of precious metals. The spot price does not include premiums, which are the fees dealers charge when buying or selling precious metals. The spot price isn’t set by any government or official body; instead, it’s determined by the ongoing buying and selling happening in major financial markets around the world.
Many factors influence precious metal spot prices, including:
The spot price constantly fluctuates during market hours, often by the second, as global markets react to supply, demand, and economic news. The global spot market is open from Sunday evening to Friday afternoon (EST), with a short break each weekday and over the weekend. While markets are open, prices move continuously.
Prices are set by trading activity in key financial centers like London, New York, Zurich, and Hong Kong.
Precious metals are quoted in troy ounces—one troy ounce equals about 31.1 grams. This differs from a standard ounce or avoirdupois ounce (a bit lighter and used to measure items like butter).
Spot prices apply to transactions where the physical metal is delivered right away (or very soon), not at some future date. This is different pricing from “futures” contracts, where delivery happens later.
Unlock the insights smart investors rely on — delivered daily. Get real-time spot prices, market trends, previous close data, and the gold-to-silver ratio straight to your inbox. Stay informed, spot opportunities early, and invest in precious metals with total confidence and peace of mind.
Unlock the insights savvy investors rely on — delivered daily. Get real-time spot prices, market trends, previous close data, and the gold-to-silver ratio straight to your inbox. Stay informed, invest wisley.
When it comes to precious metals, there are two distinct prices: the bid and ask price, which is used for buying and selling. It’s essential to understand the difference when dealing with precious metal investments.
Ask Price: The price at which a dealer is willing to sell a product to a client with the premium.
Bid Price: The price at which a dealer is willing to buy products from a client with a premium.
The Spread: The difference between the ask and the bid price.
Change: How much the price has moved since the previous market close, shown in dollars or percentages.
Previous Close: The last price quoted before the market closed the previous day.
Precious metals dealers rely on spot price feeds from various providers. You may notice slight differences between dealers because of the complexity in how spot prices are calculated. There is no “official” spot price because precious metals trade globally across different markets. That’s why it’s smart for buyers to compare prices before purchasing. Some dealers may pad their spot price feed to hedge against market volatility or increase profits.
At CMI Gold & Silver, we only apply spot price padding in rare cases when the market is highly volatile and hedging is necessary. Otherwise, our spot price feed is passed directly from our provider with no adjustments.
Gain instant access to Live Spot Prices, Interactive Charts, Special Offers, Bill’s Blog, all on your smartphone.
The spot price is the real-time market price for gold, silver, platinum, or palladium if you were to buy or sell immediately. It’s constantly changing as global markets react to supply, demand, and world events. Spot prices are quoted in troy ounces (about 31.1 grams) and are set by trading activity in major financial centers worldwide. There’s no single “official” spot price—different financial institutions and exchanges publish their own real-time quotes, which can lead to small differences between websites. premium per ounce. This is because they are government-backed and often have a legal tender value. They also offer high-quality production supported by their respective governments. Due to their widespread recognition, these coins provide enhanced authenticity assurances, making them easier to liquidate.
On the other hand, rounds are typically 1 ounce and are minted by private refineries. They generally have lower premiums than coins.
Bullion bars tend to have the lowest premiums, especially at higher weights, where you can find some of the most competitive prices.
This dual nature of padding makes it important for customers to understand both the competitive pricing aspect and the legitimate market protection purpose.
We update our prices every second to match current market rates and only use minimal padding during extreme volatility to protect our clients and honor quoted prices. We never use spot price padding as a marketing tactic. Our focus is on transparent, competitive pricing and fair premiums—no gimmicks or misleading offers.
It is essential for anyone investing in precious metals to understand that the bullion market is not regulated, which means that dealers can set their own prices. While most reputable dealers price their products competitively in line with market trends, we always advise customers to shop around for the best deals from trustworthy sources. A good rule of thumb to keep in mind is that if a price seems too good to be true, it usually is. Buyers should exercise caution regarding items that appear to be over- or under-priced.
As with any investment, there are risks involved. At CMIGS, we believe in educating clients first so you can make an informed decision based on your needs. Check our blogs and other resources to help you in your precious metals journey.
Premiums are the mark-up cost of bullion products determined by supply and demand, production costs, Dealer mark-ups, product type, and economic conditions. Investors should always shop at reputable dealers to find the lowest premium to maximize investment value.
At CMIGS, we strive to provide the most competitive offers for buying and selling. Check out our specials pages often for deals on precious metals.
Spot prices are set by trading activity in major financial centers worldwide—there’s no single “official” price. Instead, financial institutions and exchanges publish real-time quotes based on the latest buy and sell offers.
Because there’s no official exchange for precious metals, different websites may use slightly different data sources and calculations. This can lead to small differences in the spot prices you see online. In some instances, to hedge against the market or to increase profits spot prices will be padded by the individual dealer. Its important to determine the total price of an item when shopping precious metals.
Precious metals are quoted in troy ounces (about 31.1 grams), which is different from a standard ounce.
We use live, institutional-grade data feeds from top exchanges and financial institutions to offer up-to-the-second spot prices, so you always have accurate, transparent information.
A complex range of factors determines the spot price in the global market by calculating the average of the estimated price of gold based on the traded futures contract for the nearest month.
Key factors that can play a role in these prices are global economic conditions, geopolitical events, and market sentiment.
Get investor insights delivered to your inbox! Sign up for our email to get the latest precious metals news, special alerts, and more.
Plus, be the first to get our articles of interest, newsletter, and specials.
Call Now
Skip to content
