What is the gold spot price?
The gold spot price represents the current market price for immediate delivery of gold.
It's determined by trading in major global exchanges including COMEX, the London OTC market,
and the Shanghai Gold Exchange. Actual purchase prices include premiums for fabrication,
distribution, and dealer margins.
Why can't I buy gold at the spot price?
The spot price reflects wholesale interbank trading of 400-oz good delivery bars. Retail
buyers pay premiums above spot to cover minting, margins, shipping, insurance, and storage.
Premiums vary by product and market conditions.
How often does the gold price update?
Gold trades nearly 24 hours on business days. Live prices typically refresh every 60 seconds
during market hours, with the most liquidity during London and New York sessions.
What's the difference between spot and futures prices?
Spot reflects immediate delivery; futures are contracts for a future date. Futures often trade
at a small premium to spot (contango) due to storage and financing costs, but can invert
(backwardation) during tight supply.
How are dealer premiums calculated?
Premiums cover refining, minting, logistics, storage, and dealer margin. They fluctuate with
availability, volatility, and demand. Popular sovereign coins can command higher premiums in
constrained markets.
Are gold investments subject to taxes?
In the US, physical gold is a collectible (28% long-term capital gains rate). Some states tax
bullion purchases. ETFs/mining stocks may differ. Consult a tax professional for your situation.
What's the difference between troy ounces and regular ounces?
Precious metals use troy ounces (31.1034768 g) vs regular ounces (28.3495 g). One troy pound
is 12 troy ounces. The system dates to medieval Troyes, France.
How does currency affect gold prices?
Gold is priced in USD globally, creating an inverse relationship with the dollar. Local currency
movements can significantly affect buyers’ effective price.
What determines the gold spot price?
Continuous trading in global markets (COMEX futures and London OTC) drives price discovery.
Supply/demand, currencies, interest rates, and geopolitics all matter. Liquidity is provided by
major banks and institutional traders.
When are gold markets open?
Trading runs nearly 24 hours from Sunday evening (Asia) to Friday afternoon (New York). The most
liquid windows are London 3 AM–12 PM ET and COMEX 8:20 AM–1:30 PM ET.
What's the difference between allocated and unallocated gold?
Allocated: specific, numbered bars in your name (higher cost, lowest counterparty risk).
Unallocated: a claim on general inventory (cheaper, depends on dealer solvency).
How do gold mining costs affect prices?
Global AISC often sits around the low-$1,000s per oz. When prices approach costs, supply can contract,
which eventually supports prices — though spot can dip below AISC during stress.
What are gold lease rates?
The annualized cost to borrow physical gold (used by miners/jewelers). Rates rise when physical markets
tighten, signaling supply constraints or surging demand.
How does gold perform during recessions?
Performance varies by cycle. Historically, easing policy, lower real rates, and safe-haven demand
support gold, though sharp selloffs can occur in early stress periods.
