What is the Spot Price?

Описание: The spot price for gold, silver, or any commodity is the current price the commodity can be bought at.

The futures prices of gold are based on futures contracts. Futures contracts are promises to deliver gold months or years in the future. The futures price will differ based on the promised delivery time. Futures contracts are bought and sold for two different reasons. First, they can be used to remove exposure to price fluctuations. Second, they can be used to speculate on future prices.

The spot price is set by the current month’s futures contract or the month with the highest volume of futures contracts.

The largest exchange for precious metals is the New York Commodity Exchange Inc. (COMEX). The London Bullion Market Association (LBMA) and Shanghai Gold Exchange (SGE) also set the gold price.

Bullion dealers like Miles Franklin use a blend of the spot prices set by these exchanges. The price at which you will buy bullion is this spot price plus premium and commission.