How spot price is determined
Spot prices for precious metals such as Gold and Silver are usually calculated per troy ounce of metal. These prices change by the second and are determined by what people are willing to pay as well as what price people are willing to sell the metal at around the world. Spot prices generally serves as a reference point for what you should pay per ounce of metal as well as what price you should sell it for at a specific point in time. Generally, when selling Gold and Silver bars, jewelry or other forms of scrap metal a dealer will pay you a little bit under spot price because of the costs they will incur when refining it. On the other hand, when selling coins, they will generally pay you at or above spot price depending on the collectibility and popularity of the coin.
Why are most Gold and Silver products priced higher than spot price?
Most online dealers will sell their bars, coins and rounds for more than what spot price is at any point in time. This is because every bullion product carries what is called a premium. A premium is the dollar amount or percentage over spot price that a particular product carries. This is usually associated with production costs that a mint or refinery incurs when making a bullion product.