Investment grade bullion refers to physical precious metals, most commonly gold, silver, or platinum, that are valued for their metal content and purity. Bullion is distinguished by its high purity, usually 99.9% or higher.
What Does Spot Price Mean?
Spot price refers to the current market value of one troy ounce of precious metal. The required purity for spot price is 99.99% for gold, 99.95% for platinum and 99.9% for silver. The spot price is ever changing with the market fluctuations of precious metals. Bullion dealers use the spot price as the value that buying and selling prices are based on.
Why Can't I Sell my Bullion at Spot Price?
While spot price is the current value of one troy ounce of precious metal there are more factors involved in the price that a bullion dealer buys bullion at. It is almost impossible to sell precious metal bullion at spot price because spot price only takes into account the value of the metal. It doesn't take into account the cost of the bullion design, manufacturing costs, transportation costs or availability, not to mention the cost of the bullion dealer doing business. If you stay aware of the current spot prices you can compare the prices bullion dealers are buying bullion at to make sure you are getting the deal closest to the current market value.
Silver Fox Coins 1521 N. Cooper Street Suite 204, Arlington, TX 76011