What Is the Spot Price of Gold? Troy Ounces, Premiums and Spreads
The spot price of gold is the market price, right now, for one troy ounce (31.1035 g) of pure gold, before any making, shipping or dealer costs. Every gold and silver price you see starts from it. This guide explains why coins and bars cost more than spot, why buyers pay less, and the weight units the market uses.
What the spot price is
The spot price is the market price, right now, for one troy ounce of pure metal: 99.9% gold, silver, platinum or palladium. It moves through the trading day as the big markets in New York, London and Asia trade. It is the price of the metal alone, before any making, shipping or dealer costs.
Troy ounces are not ordinary ounces
Precious metals are weighed in troy ounces, which are heavier than the ounces used for food.
| Unit | In grams | In troy ounces |
|---|---|---|
| Troy ounce (oz t) | 31.1035 g | 1 |
| Ordinary ounce (oz) | 28.3495 g | 0.9115 |
| Pennyweight (dwt) | 1.5552 g | 0.05 (1/20) |
| Gram (g) | 1 g | 0.0322 |
| Kilogram (kg) | 1,000 g | 32.1507 |
So one troy ounce is about 9.7% heavier than an ordinary ounce. Jewelers often quote scrap in pennyweights; bullion is sold in troy ounces, grams and kilograms. Our Markets page shows today's price in all of these units and in 14 currencies.
Why coins and bars cost more than spot
The amount you pay above spot is the premium. It covers minting or refining the piece, its packaging and assay card, shipping, insurance and the dealer's costs. Small pieces carry a higher premium per ounce than large bars, and collectible coins are priced on their rarity as well as their metal.
Why buyers pay less than spot
When you sell, a buyer pays a share of the melt value: the weight of pure metal times the spot price. The difference covers testing, refining and the buyer's risk while the price moves. The gap between what a dealer sells at and buys at is called the spread. Our Markets page lists both what we sell at and what we buy at, and our We buy gold estimator shows the payout for jewelry and scrap from the live price.
Working out melt value
Melt value = weight in troy ounces × purity × spot price. For a weight in grams, divide by 31.1035 first, or use the price per gram. For purity, see the gold karat and purity chart.