What Is the Spot Price of Gold and Silver?
What does “spot price” mean?
“Spot” is market shorthand for “on the spot.” It is the price to buy or sell metal now, rather than at a future date. In the United States, spot is quoted in dollars per troy ounce. A troy ounce is 31.1035 grams. To convert grams, ounces or kilos, use our weight converter.
Spot describes raw metal in wholesale form, such as large bars traded between banks, refiners and big dealers. It is not the price of any one coin. Think of it as the starting point that the price of metal products is built on.
Where does the spot price come from?
No single office sets one official spot price. The figure on a price chart is compiled by data providers from live trading in the major wholesale markets. Two of the most important are:
- The London market. Banks and dealers trade gold and silver directly with each other there, “over the counter.” The London Bullion Market Association (LBMA) sets standards for this market.
- Futures exchanges. COMEX in New York, part of CME Group, lists standard gold contracts of 100 troy ounces and silver contracts of 5,000 troy ounces. Active futures trading feeds into the prices people see.
You may also hear about the LBMA Gold Price and LBMA Silver Price. These are daily benchmarks set by electronic auctions run by ICE Benchmark Administration. Gold auctions start at 10:30 and 15:00 London time, and silver at 12:00. Benchmarks are used to settle contracts and value holdings. They are snapshots, while spot keeps moving between them.
Because providers draw on different feeds and update at different moments, two websites can show slightly different spot prices at the same time. That is normal.
What are bid, ask and spread?
Every live market has two prices, not one.
| Term | What it means |
|---|---|
| Bid | The highest price buyers are offering right now. It is roughly what a seller would receive. |
| Ask (or offer) | The lowest price sellers will accept right now. It is roughly what a buyer would pay. |
| Spread | The gap between bid and ask. It covers the cost of making a market and tends to widen when trading is thin or fast. |
| Spot | The single headline number on a chart. Providers differ on whether it reflects the bid, the ask or a midpoint, so check which one you are looking at. |
| Melt value | A coin’s pure metal content multiplied by spot. It ignores every cost of making and selling the coin. |
Dealers work the same way. A dealer’s buy price for a coin is lower than its sell price, and the difference is that dealer’s spread.
Why do coins sell above spot?
The amount above melt value is called the premium. It reflects real costs and real demand that raw metal does not carry.
- Minting and fabrication. Turning metal into a finished coin takes refining, blanking, striking and inspection. Proof coins take extra steps and extra care.
- Distribution. Coins move from the mint to wholesalers to retail dealers. Each step adds handling, shipping, insurance and overhead.
- Grading. Certification by NGC or PCGS adds submission fees, shipping and insurance. In return you get an independent opinion of authenticity and grade, sealed in a tamper-evident holder. See NGC vs PCGS.
- Grade and rarity. Top grades such as MS70 or PF70, low mintages and small certified populations draw collector demand that has nothing to do with metal weight.
- Labels. Special label designations, early-release labels and hand-signed labels appeal to particular collectors. Our coin label guide explains the types.
- Supply and demand for the product. A popular coin can carry a higher premium than raw metal when demand for that coin runs ahead of supply.
How much does spot matter for certified coins?
For a common bullion coin, spot drives most of the price, and the premium is a smaller share. For a rare date, a top-grade coin or a scarce signed label, the collector premium can be much larger than the metal value. NGC makes this point on its melt value pages: a coin’s numismatic value may be higher than its melt value.
This is why two one-ounce silver coins with the same metal content can be priced very differently. Their metal is worth the same. Their grade, rarity and label are not.
We do not forecast prices, and no one can reliably say where spot will go next. If you want to follow the market, our live charts track metal prices through the day.
Affinity Collectibles is an NGC Authorized Dealer and ANA member in Ronkonkoma, NY. If you have questions about how a certified coin compares to its metal value, contact us.
Frequently asked questions
Can I buy a coin at the spot price?
Generally no. Spot is a wholesale price for raw metal. Finished coins include costs for minting, distribution and, for certified coins, grading.
Why do different websites show different spot prices?
Data providers use different market feeds and update at different moments. Some show the bid, others the midpoint. Small gaps are normal.
Is the LBMA Gold Price the same as spot?
No. The LBMA Gold Price is a benchmark set by auction twice each London business day. Spot changes continuously while markets are open.
What is melt value?
A coin’s pure metal content in troy ounces multiplied by the spot price. It is a reference point, not a coin’s market value.