What is the “spot” price? And why do newspapers, radio and television sometimes give different spots on the same day?
Spot price is the price quoted per troy ounce on a cash basis for very large purchases on commodity exchanges. It does not include commissions, delivery charges, insurance, and taxes. There are major precious metals markets around the world. Since each had different trading hours, the closing prices usually vary. For gold, the media often quote the London PM fix–the price on the open market in the afternoon in London, England (about 10:30 AM in the Eastern time zone in the U.S.). Silver, platinum, and palladium spots are usually derived from U.S. commodity futures markets in New York. Sometimes, you will see Zurich, Hong Kong, Tokyo, or Sydney spot prices quoted. Most U.S. markets are open from 9:00 AM to 1:30 PM. Very early in the day, we base our spot prices on London and Zurich markets. During the day, spot is usually derived from New York and Chicago markets. Late in the day, we refer to Hong Kong and Sydney markets for spot prices. Spot prices are quotes in troy ounces. They are
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