Q:

How are spot prices for gold and silver set?

A:

Quick Answer

The spot price of gold and silver is derived from the price of gold and silver futures contracts in the nearest month with the most volume of that commodity on the market. Sometimes that is the current month, but it can be one, two or three months in the future.

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Full Answer

Spot prices are what a person may buy or sell gold and silver for at that moment, while futures contracts set a price for an amount of gold or silver to be delivered at a time in the future. The spot price for gold and silver is often calculated using the prices of gold and silver futures on the New York COMEX exchange.

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