What is spot price and why do I pay a premium to acquire physical gold and silver?

Spot price refers to the current market price of a commodity, and precious metals directly follow their spot price (moving up and down throughout the day, such as a company's stock price). In order to purchase physical precious metals, investors pay a small premium above the metal's spot price. The premium reflects the costs of extracting, refining, and selling the physical bar or coin.

Did this answer your question? Thanks for the feedback There was a problem submitting your feedback. Please try again later.