Jump to content
  • The above Banner is a Sponsored Banner.

    Upgrade to Premium Membership to remove this Banner & All Google Ads. For full list of Premium Member benefits Click HERE.

  • Join The Silver Forum

    The Silver Forum is one of the largest and best loved silver and gold precious metals forums in the world, established since 2014. Join today for FREE! Browse the sponsor's topics (hidden to guests) for special deals and offers, check out the bargains in the members trade section and join in with our community reacting and commenting on topic posts. If you have any questions whatsoever about precious metals collecting and investing please join and start a topic and we will be here to help with our knowledge :) happy stacking/collecting. 21,000+ forum members and 1 million+ forum posts. For the latest up to date stats please see the stats in the right sidebar when browsing from desktop. Sign up for FREE to view the forum with reduced ads. 

What does the term 'Spot Price' mean?


20JMK20

Recommended Posts

 

As a newbie to the collecting scene and from what I have read on here I am guessing the term 'Spot Price' means the cost of any specific metal at it's cost price before it is made into any kind of coin ... ?

Any info for this keen learner most gratefully received.

Thank you. 

Link to comment
Share on other sites

2 minutes ago, 20JMK20 said:

 

As a newbie to the collecting scene and from what I have read on here I am guessing the term 'Spot Price' means the cost of any specific metal at it's cost price before it is made into any kind of coin ... ?

Any info for this keen learner most gratefully received.

Thank you. 

You're correct. You can see the spot price if you scroll all the way down to the bottom of the main forum page or their are charts available from many sources. It is just the pure value of the metal by a specified weight - usually troy ounces.

Link to comment
Share on other sites

You can assume that this is the scrap metal price or intrinsic price.
Also people refer to this as the "melt" value i.e. removing any added value re- minting, design, rarity, numismatic value etc.

Link to comment
Share on other sites

10 hours ago, 20JMK20 said:

 

As a newbie to the collecting scene and from what I have read on here I am guessing the term 'Spot Price' means the cost of any specific metal at it's cost price before it is made into any kind of coin ... ?

Any info for this keen learner most gratefully received.

Thank you. 

The spot price is the live price it's being traded at in the markets.  It changes every second when the markets are open.

Gold/toz GBP : https://uk.tradingview.com/symbols/XAUGBP/

Silver/toz GBP : https://uk.tradingview.com/symbols/XAGGBP/

Some people use the price charts on BBP but it doesn't auto-update unless you manually select the 'live' tab and that only shows the last couple of minutes https://www.bullionbypost.co.uk/gold-price/gold-price-today/

Darren has a gold price comparison site which shows the spot prices for the fractional coins to save you getting out your calculator.  Particularly useful for sovereigns (the figures in yellow) http://goldprice.eu5.net/.  The spot price on that site auto-updates every 5 mins.

Link to comment
Share on other sites

  • 3 months later...

What is the authoritative price for gold spot?

I have been using the price displayed on Bullion By Post to calculate premiums for my site, but they just had a small downtime causing my script to fail. While looking around a few of the other vendor sites, to use as a backup, I noticed that their gold prices differ (as much as 0.63%).

Coin Invest £1,418.18
UK Bullion £1,420.46
TSF Bar £1,421.62
TSF Chart £1,421.98
Chards £1,422.08
Direct Bullion £1,422.14
Hatton Garden Metals £1,422.18
Atkinsons £1,422.18
Trading View £1,423.62
Sharps Pixley £1,423.92
ATS Bullion £1,427.07
Bullion By Post £1,427.07
Gold.co.uk £1,427.07

If I were to hazard a guess, this may be down to currency exchange calculations, but I'm open to correction.

I'd really like to know where the globally agreed price is derived / displayed, and just use that.

Link to comment
Share on other sites

@Darr3nG  Could be currency, mainly different sources for the data.  Trouble is there isnt a single source, with various exchanges and major CFD platforms offering markets. I use Tradingview and there's 6 tickers for XAUUSD, 3 for XAUGBP, none of them LMBA or CME or eastern exchanges where metal actually trades. I believe the authority for spot is the am/pm fix on LMBA, rather out of date for internet. 

Sorry not much help, short version I go with Atkinson website. 

Link to comment
Share on other sites

This will cover most of your question! IMHO

What is Spot Price!

The spot price is the current price in the marketplace at which a given asset—such as a security, commodity, or currency—can be bought or sold for immediate delivery. While spot prices are specific to both time and place, in a global economy the spot price of most securities or commodities tends to be fairly uniform worldwide when accounting for exchange rates. In contrast to the spot price, a futures price is an agreed upon price for future delivery of the asset.

 

Basics of Spot Price

Spot prices are most frequently referenced in relation to the price of commodity futures contracts, such as contracts for oil, wheat, or gold. This is because stocks always trade at spot. You buy or sell a stock at the quoted price, and then exchange the stock for cash.

A futures contract price is commonly determined using the spot price of a commodity, expected changes in supply and demand, the risk-free rate of return for the holder of the commodity, and the costs of transportation or storage in relation to the maturity date of the contract. Futures contracts with longer times to maturity normally entail greater storage costs than contracts with nearby expiration dates.

Spot prices are in constant flux. While the spot price of a security, commodity, or currency is important in terms of immediate buy-and-sell transactions, it perhaps has more importance in regard to the large derivatives markets. Options, futures contracts, and other derivatives allow buyers and sellers of securities or commodities to lock in a specific price for a future time when they want to deliver or take possession of the underlying asset. Through derivatives, buyers and sellers can partially mitigate the risk posed by constantly fluctuating spot prices.

Futures contracts also provide an important means for producers of agricultural commodities to hedge the value of their crops against price fluctuations.

From here - - > > https://www.investopedia.com/terms/s/spotprice.asp

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...

Cookies & terms of service

We have placed cookies on your device to help make this website better. By continuing to use this site you consent to the use of cookies and to our Privacy Policy & Terms of Use