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[…] Safe Haven Metal company logo of a shield with the letters "SHM" as the body, and the company name in over under format, silver and gold colors
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How is Spot Price calculated?

Spot Price

Spot price is precious metal industry phrase that is central to all business transactions. This article addresses what spot price means. How the market assesses spot price. Its application and dangers to be on the look for when making purchases.

Before we venture into a little foundation must be set forth.

Gold as a Safe Haven Asset

Acquiring Gold provides a means for all people to safeguard their wealth against dollar devaluations and volatile stock markets. Gold is available as a tier one asset in the form of physical bullion and in paper certificates. Physical Gold must first be mined and then processed into bullion. The Gold bullion is then minted by various entities worldwide, both government and private. The mints then form coins, bars, and rounds, into a wide range of sizes. You can read more in our other article discussing history and science of bullion.

An alternative to owning physical Gold, is Gold certificates. Unlike Gold bullion, those who buy Gold certificates don’t physically possess the Gold, thus precluded from storing it themselves. Compared to owners of physical Gold bullion, some investors prefer the relatively light weight of paper and its tangible aspects. Perceiving it as convenient and easy to exchange paper for paper Gold certificates.

*Safe Haven Metal only offers Physical Precious Metals for purchase, we do not deal in paper.

The Standard Base Weights for Spot Price

The standard unit of measurement is the troy ounce. When we shop in the U.S. we are used to the avoirdupois ounce. A troy ounce is slightly heavier, equivalent to 31.103 grams or 1.097 avoirdupois ounces. Read more in our troy ounce article.

What is Gold Spot Price?

The Gold Spot Price refers to the current market value at which one troy ounce of raw Gold can be bought or sold for immediate delivery on the Precious Metals market.

Global market conditions constantly fluctuate causing changes in the value of Gold per troy ounce. Thus influencing buying and selling activities. It is prudent to closely monitor daily price changes and performance indicators.  But also to view these changes relative to the week and month. See our charts to visually observe trends in spot price.  Like everything, we can never know the future of spot prices. But we can predict human behavior by staying informed about world market news and market reports. Allowing for informative decisions about the Precious Metals market.

Comparative Fluctuations

These fluctuations in spot price are relatively small increments. For example, a large swing in a single gold day would be around $40 about 2% of spot. Whereas a 2% swing in Southern California lower middle class real estate is $16,000.

Understanding the Price of Gold Charts

Safe Haven Metal provides investors with a user-friendly live gold and precious metals Spot Price ticker and charts. The page is continuously updated to reflect the latest world prices. The charts also allow users to see recent market trends, as mentioned above.

Spot price is the market demand fluctuating over bar graphs

Gold Commodity Contracts

Gold futures contracts, also known as commodities, play a significant role in determining the Gold price per troy ounce. Commodities encompass nearly all raw goods, including Gold, Silver, Platinum, crude oil, cocoa, coffee, soybeans, cotton, etc. Each with futures contracts traded on various global exchanges. Gold futures contracts offer commodity producers, end-users, and speculators opportunities to manage price risk, buy and take future delivery of real-world goods, or speculate on Gold price movements. However, debates persist about true price discovery for Gold bullion in today’s market due to the high volume of paper contracts compared to actual physical Gold delivery.

Is the Spot Price of Gold Per Ounce Constantly Changing?

Yes, the spot price of Gold per troy ounce undergoes regular changes during world market hours. Updating from 6:00 PM EST every Sunday through 5:15 PM EST Friday. While Gold may experience periods of consistent prices, it can also change rapidly due to various global influences. Such influences include currency inflations, political events, supply and demand fluctuations, and other world events.

Why Can’t I Buy Gold at the Spot Price?​

This is where the theoretical reality of spot price is exposed. When everyone purchases Gold, the actual cost may exceed the spot price of Gold per ounce. This is due to bid/ask prices and additional premiums associated with the production and distribution of Gold.

Bidding Price

– The bidding price represents the price at which a dealer is willing to buy Gold.

Asking Price 

 –The asking price is the price at which the dealer sells the same ounce of Gold.

Spread

– The spread is the difference between the bidding and asking prices. For example, if a dealer buys an ounce of Gold at $1,950.00 USD and sells it the same day at $2,190.00 USD, the spread is $140.00 USD.

Premium

– The premium over spot price includes additional costs. This relates to the production and distribution of Gold, encompassing any overhead expenses generated during the Gold transaction. For example, big celebrity endorsements translate to larger premiums. Whatever they said about that company… you paid for.

Here's how the Gold supply chain works:

The process of purchasing Physical Gold for personal asset protection involves various players in the open Gold market.

Futures traders engage in leveraged derivative bets on worldwide futures exchanges.

Spot price starts on the New York Stock Exchange trading floor

Miners extract mixed ore from the ground and then sell it to bullion refiners. These miners typically price their goods close to the world’s Gold spot price.

gold ore in granite rock starts the process to spot price

Refiners receive the ore and proceed to melt and purify it into fine Gold bullion. This refined Gold is then sold to mints or bullion dealers at just about the spot price of Gold.

Gold smelting process showing gold pouring down steps on its process to forming spot price

Private and government mints are responsible for striking bullion coins or pouring bullion bars. These mints sell their products to Gold dealers at bidding prices, which are typically just above the Gold spot price.

Die cast setting for American Eagle silver

Retailers like Safe Haven Metal

Then on to the retail bullion dealers, such as Safe Haven Metal. We offer Gold bullion products to the public in a fair and transparent way. We price our products competitively to the spot price of Gold, and include any premiums in the final price offered to our clients in our contracts. Letting you know the bullion and price at the time of sale.

Legal scales showing balance and law books showing correctness

Gold Spot Price in Review

In summary, the Gold spot price is a result of the interaction between worldwide futures markets and the underlying real-world Gold price per ounce. The market for physical Gold, including the bullion items are available for purchase at Safe Haven Metal. We closely track the Gold spot price, with Gold bullion product prices typically hovering just above the spot price. This ensures transparency for our clients.

We hope this explanation helps you understand how the spot price of Gold is determined. While the process may seem complex, it is essential. But with at least a basic understanding of this significant aspect of buying Gold. You are able to better visualize the process involved and make informative decisions.

Miners pan with gold nuggets in water
man with massive torch firing raw gold ore to purify it
holding a carefully molded Koala gold and silver coin
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Simplified Short Version of Terms and Conditions of Website

This is only a simplified version of the full terms and conditions, it is intended as a quick overview regarding the things as people are most commonly relevant to us.

This website is governed by the full terms and conditions.

Purchase and sales agreements are separate, and provided in different links found on the footer. 

Consent to Contact

Submitting your contact information on any of our contact forms and or calling or emailing Safe Haven Metal is a grant of consent for us to contact you via telephone or email. This consent is a waiver if you are on the do not call list registry and any email shall not be considered spam or unsolicited. Safe Haven Metal will contact you to discuss your needs and no other use of your contact information will be engaged in by us. We do not sell your phone number or email information to anyone.

Please review our Privacy Policy and Cookie Policy for opt out procedures and additional information. The bottom line is that we do not like it when companies sell our information so we will not do it to others.

AML POLICY

Due to Anti-Money Laundering (AML) Policy restrictions and guidelines, we do not accept physical paper money (cash) for purchases. If you do not know what the AML is, you really need to look it up, as it applies to everyone.

As a financial institution, Safe Haven Metal is AML compliant.

PAYMENT OPTIONS

For products that will be delivered to you directly these traditional forms of payment are accepted: bank wire (we prefer this one), cashier’s check, ACH; also IRA is acceptable but that has tax consequences for you.

For products that will be stored by a third party (depository), IRA, 401k, Pensions, Retirement Account, etc. (see full list on Gold IRA page) are all acceptable forms of payment.

We do not accept credit card payments, cash over $10,000 and we do not accept cryptocurrency, we are happy with our real gold.

BUY BACK POLICY (from the purchase agreements)

Safe Haven Metal (SHM) is prohibited under the law from guaranteeing to repurchase Precious Metals that SHM sells, and SHM does not guarantee that it will repurchase any Precious Metal item that Client may purchase; what SHM extends is the possible availability as a buyer at a later date. If and when Customer desires to liquidate, simply call SHM and let SHM know you are ready for SHM to exchange for cash the Precious Metals purchased from us subject to the following procedure that must occur:

i.)         Customer ships the Precious Metals products originally purchased from SHM for inspection because the buy back offer is only for the exact items purchased from us, inclusive of exact condition; and 

ii.)        The cash value of buy back will be at or near Spot Price at the time when we have examined the product to ensure it passes inspection (which is at our or our designated inspector’s sole good faith discretion as to current condition compared to documented condition when originally purchased); 

iii.)      A new agreement is then presented by SHM to Customer reflecting Spot Price and conditions quantities much like this Invoice; the offer is valid for 24 hours after inspection approval and new agreement sent; 

iv.)      Once signed and returned to SHM the money is then released to you within 72 hours; if Customer rejects the offer then Customer must pay for return shipping costs and the product will be returned to Customer. 

v.)          There is no fee on buy back, as that fee is part of the initial purchase Agreement with us as a part of our consideration to be available for your needs at a later date, consistent with this whole paragraph.

Risk Disclosures

Investing in everything is a risk; values fluctuate, sometimes going up, other times down; no one can predict the future; that is why diversified portfolios are usually recommended. The best anyone can do is make informed decisions and see if correct over time, therefore do research, do your homework. Do not invest more in precious metals than you feel comfortable with after informing yourself. Read your contract; ask your attorney to review it. We strive to do right and help others, if you do not understand something then ask us. There are no guarantees, other than doing our best for you.

DISCLAIMER

Our communication of portfolio is intended as Oxford Dictionary defines “portfolio” as: “a range of products or services offered by an organization, especially when considered as a business asset” and Oxford defines “analysis” as “detailed examination of the elements or structure of something”.

All information provided on this website is the opinion and property of Safe Haven Metal LLC. All customers and potential customers are encouraged to do independent research, educate yourself and make informed decisions. Then you can make the best decision for yourself. Once you have done your diligence you will see that Safe Haven Metal LLC truly does have our clients’ best interests in heart. We would not encourage you to go look around elsewhere if we were not confident in what we offer and provide.

NOTICE: Any images of persons on our site are from professional models obtained through licensing of various companies.

Full Terms and Conditions

The full terms and conditions control over this simplified version. This is intended as a quick reference point only. You can access and read more on the full terms and conditions page.