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.
