Gold Spot Price vs Premium: How Gold Is Priced

Education, not advice. Worked examples use round illustrative numbers and are labelled as such; every rule and definition links to its source.

The "price of gold" you see on the news is not what you pay for a coin. There are at least three prices worth knowing: the spot price, the twice-daily London benchmark, and the futures price on COMEX in New York. On top of those, every retail dealer adds a premium when it sells and takes off a discount when it buys back. The gap between the two is the spread, a cost you pay on every round trip.

This guide explains each number and gives you a simple way to check a quote.

The spot price

The Commodity Futures Trading Commission defines the spot price as the cash price for immediate delivery of physical metal, quoted in dollars per troy ounce (Commodity Futures Trading Commission). A troy ounce is heavier than the everyday ounce: the COMEX rulebook uses 31.1035 grams per troy ounce (CME Group, COMEX Rulebook Chapter 113).

There is no single exchange where "spot gold" trades. The SPDR Gold Trust's investor document explains that the spot price is determined by market forces in the 24-hour global over-the-counter market, where banks and dealers trade with each other and with clients, and that most of those trades are cleared through London (State Street Global Advisors, GLD frequently asked questions). Because it trades continuously between many parties, two websites can show slightly different spot prices at the same moment.

The London benchmark: the LBMA Gold Price

Twice each London business day, an auction sets an official reference price. ICE Benchmark Administration runs electronic auctions for spot, unallocated gold delivered in London at 10:30 and 15:00 London time. The results are published as the LBMA Gold Price AM and PM, priced in United States dollars, with British pound and euro versions converted afterward (ICE Benchmark Administration). The auction runs in rounds: the administrator announces a price, participants enter how much they want to buy or sell, and the price is adjusted until buying and selling roughly balance (ICE Benchmark Administration).

The benchmark matters because contracts and funds refer to it. For example, the SPDR Gold Trust values its gold each day at the LBMA Gold Price PM (State Street Global Advisors). The LBMA notes that the price is administered by ICE Benchmark Administration (London Bullion Market Association).

The futures price: COMEX

In New York, gold also trades as a futures contract on COMEX, part of CME Group. The standard contract is 100 troy ounces, and gold delivered against it must be at least 995 fineness (99.5 percent pure) from an exchange-approved refiner, in one 100-ounce bar or three one-kilogram bars (CME Group, COMEX Rulebook Chapter 113).

A futures price is a price for delivery later, so it usually differs from spot. The GLD document notes that gold futures typically trade at a premium to the spot price (State Street Global Advisors). That is why our hourly gold dashboard starts from delayed COMEX futures (about 10 minutes) and subtracts a measured futures-minus-spot gap to show an approximate spot price. It is a reference for the market's direction and levels, not a dealer quote. The dashboard shows the futures price and the current gap next to the spot estimate.

The premium: what a dealer charges above spot

When you buy a coin or bar, the dealer sells it above the value of the gold in it. The Commodity Futures Trading Commission calls that markup the premium and gives a formula for it (Commodity Futures Trading Commission):

Premium % = (Sales price − Spot value of the gold) ÷ Spot value of the gold × 100

The key step is converting spot to the weight of what you are buying. The Commodity Futures Trading Commission's own example: if spot is $2,000, a half-ounce coin contains $1,000 of gold, plus the dealer's premium (Commodity Futures Trading Commission).

Worked example (illustration only, not a real quote). Suppose spot is $4,000 per troy ounce and a dealer offers a one-ounce coin for $4,200.

1. Gold value: 1 ounce × $4,000 = $4,000.
2. Premium in dollars: $4,200 − $4,000 = $200.
3. Premium percent: $200 ÷ $4,000 × 100 = 5 percent.

Be careful with what "one ounce" means. Under federal coinage law, the one-ounce American Eagle gold coin weighs 33.931 grams but contains one troy ounce of fine gold; the rest is alloy (Cornell Law School, 31 U.S. Code § 5112). What matters for the premium is the fine gold content, not the total weight.

How big are premiums? Regulators have published ranges, not standard rates. In a 2020 advisory the Commodity Futures Trading Commission described bullion as priced at spot plus a premium of between 5 and 10 percent, and said customers are often steered to collectible ("numismatic") coins with premiums of 40 to 200 percent above spot (Commodity Futures Trading Commission). Premiums move with demand, product size and the dealer, so treat those as context, not a benchmark for today.

The spread: the round-trip cost

A dealer will always sell above spot and buy back below it. The difference between its sell price and its buy-back price is the dealer's spread. The Commodity Futures Trading Commission says each dealer sets its own spread, that fraudulent dealers have charged spreads of more than 300 percent while others charge less than 20 percent, and that the bigger the spread and other costs, the more the spot price has to rise before you break even (Commodity Futures Trading Commission).

Worked example, continued (illustration only). The same dealer would buy the coin back today for $3,900.

1. Spread in dollars: $4,200 − $3,900 = $300.
2. As a share of what you paid: $300 ÷ $4,200 ≈ 7.1 percent.
3. Break-even: before any storage or other fees, the coin's buy-back price would need to rise by $300, which at that dealer's pricing means spot rising by roughly that amount.

That is why the regulator suggests asking, before you buy, how much the dealer would pay if you sold it back tomorrow (Commodity Futures Trading Commission).

Why collectible coins cost more, and the "semi-numismatic" pitch

Bullion coins and bars are valued mainly on their gold content. Rare or collectible coins can carry much higher premiums, and the Commodity Futures Trading Commission warns that they can be difficult to value objectively, that the market for them is not very liquid, and that sellers are often forced back to the same dealer, who buys at a fraction of the original price (Commodity Futures Trading Commission). It also says "semi-numismatic" is a made-up industry term with no special meaning, and that someone charging extra for such coins is likely running a scam (Commodity Futures Trading Commission).

Melt value on your statement

If you hold metal in a retirement account, the Commodity Futures Trading Commission says the custodian's statement shows the "melt" value: total bullion weight times the spot price (Commodity Futures Trading Commission). If that figure is far below what you paid, the difference is the premium and fees you paid on the way in. Our guide on how a gold IRA works explains the account rules, and how to check a dealer or custodian covers what to ask before you sign.

A quick checklist for any quote

• Write down the spot price and the time you checked it.
• Confirm the fine gold content of the product in troy ounces.
• Work out the premium percent with the formula above.
• Ask for the same-day buy-back price and work out the spread.
• Ask about shipping, insurance, storage and any account fees, in writing.
• Compare at least two dealers for the same product.

For a sense of where the market is right now, the dashboard and key levels pages update hourly during market hours. For how a gold exchange-traded fund's price relates to its gold, see our comparison guide.

Frequently asked questions

Why does my dealer's spot price differ from another website's?

Spot gold trades continuously in a global over-the-counter market rather than on one exchange, so sources take quotes from different places at different moments. Small differences are normal.

Is the LBMA Gold Price the same as the spot price?

It is a benchmark set by auction twice a day in London, at 10:30 and 15:00 London time. Between auctions, the spot price keeps moving.

Why is the COMEX futures price higher than spot?

A futures contract is a price for delivery at a later date, so it usually differs from spot. The SPDR Gold Trust document notes that gold futures typically trade at a premium to spot.

What is a reasonable premium?

There is no official standard. The Commodity Futures Trading Commission has described bullion premiums of 5 to 10 percent in one 2020 advisory and much higher premiums on collectible coins. Compare dealers and get the numbers in writing.

Sources

All accessed October 26, 2026.

• Commodity Futures Trading Commission and Financial Industry Regulatory Authority, 10 Things to Ask Before Buying Physical Gold, Silver, or Other Metals (issued March 20, 2024).
• Commodity Futures Trading Commission, Beware of Gold and Silver Schemes Designed to Drain Your Retirement Savings (2020 advisory).
• ICE Benchmark Administration, LBMA Precious Metals Prices.
• London Bullion Market Association, LBMA Gold Price.
• CME Group, COMEX Rulebook Chapter 113, Gold Futures.
• State Street Global Advisors, GLD frequently asked questions.
• Cornell Law School Legal Information Institute, 31 U.S. Code § 5112.

Education, not advice. Example prices are illustrations; always check live prices and written quotes.

Not financial advice. This guide explains how gold prices are quoted and how to do the arithmetic. It is not investment advice or a recommendation to buy or sell anything. Example numbers are illustrations, not quotes. Read the disclaimer.