What does gold spot price mean?
The gold spot price is the price for gold bought and sold right now, for immediate delivery, in the wholesale market. It is quoted in US dollars per troy ounce for fine gold of at least 99.5% purity, and it is the number reported in the news when the gold price rises or falls. It is a wholesale benchmark, not a price anyone is paid for jewellery.
What spot price actually describes
It is the price for immediate delivery of fine gold in the wholesale market, quoted per troy ounce in US dollars. A widely used London benchmark is set by auction twice each business day. It assumes bars of known, certified purity — not a bag of mixed rings.
What sits between spot and an offer
- Assay and refining — turning mixed jewellery back into certified fine metal.
- Refining — separating gold from alloy metals, which costs money and takes time.
- Price movement — gold can move materially between purchase and settlement, and that risk sits with the buyer.
- Handling and operating costs — secure storage, insurance, transport, staff.
- Margin — the buyer's business has to make a return.
How to compare buyers properly
- Ask for the price per gram at each standard, not a single blended figure.
- Check the items are weighed in front of you and sorted by standard.
- Ask how the standard was established, and whether you can watch the weighing.
- Establish whether the quote is fixed for a period, given how quickly gold moves.
- Ask what happens if you decline — you should keep your items with no charge or pressure.
Those questions are worth more than a headline percentage, because a high advertised rate applied to an understated weight or an understated purity is not a good deal.
Percentage of spot
Buyers often describe offers as a percentage of the spot value of the fine gold content. The percentage varies with quantity, standard and market conditions. Gold Up does not publish a fixed percentage on this site, because a figure quoted out of context is misleading; the basis of the calculation is explained when your items are valued.
This is general information about how the gold trade works. It is not financial or investment advice.
