What Does Spot Price Mean When Buying Gold?

What is Spot Price?

Spot price refers to the market value of gold based on the collective buying and selling of contracts of gold. It's different from the final purchase price of a certified gold bar. 

The reason is because spot price does not include costs of shipping, manufacturing, handling, storing, and certification of the gold. All those costs combined reflect what's called a "premium" (any amount above spot price you pay for your gold bar).

How to Find the Spot Price Easily?

Just search "current gold price per ounce" or "gold price today" on google or any other search engine, the number you see is the spot price at that moment. This price is not fixed and changes throughout the day based on global supply and demand.

Take at a look at the image below for how to calculate the Final Price for one Ounce of Gold Bar.

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