The spot price is the cost of gold and other precious metals at the current moment rather than a date in the future or the past. Spot prices are tied to the weight of precious metals and are usually quoted in USD.

The troy ounce, usually abbreviated as “t oz,” is the standard unit of measurement for the weights of gold and other precious metals. The troy ounce differs from the standard ounce that you might use for goods like sugar or flour in that it was specifically developed for assessing precious metals. The name likely derived from the French trade market town of Troyes and became the official standard for gold and silver in England in 1527. Today, at 31.103 grams, a troy ounce is heavier than a standard ounce (28.35 grams).

Sometimes, however, kilos and grams are used to measure the weight of gold, and spot prices will vary accordingly. Fortunately, the metric system is used widely around the globe, and metric weights are easily converted to troy ounces. Thanks to standardization, a troy ounce (or kilo or gram) of gold here is the same as a troy ounce of gold elsewhere, so spot prices will have the same basis regardless of your location and the currency you’re using.

Another technical point of interest is bid/ask spread. This concept isn’t unique to precious metals and it’s really there for the information of traders – it scarcely affects a retail purchase, but you’ll often see it on the internet, and again, it’s good to know what it means. Whether talking about stocks or assets, the bid/ask spread is the difference between the highest price a buyer is willing to pay for something (bid price) compared to the lowest price a seller is willing to accept (ask price).

For example, if the ask price for something is $1,001, and the bid price is $1,000, then the bid/ask spread is $1. Bid and ask prices vary daily and are quoted alongside spot prices and other fluctuating statistics for assets.

Maintained by the London Bullion Market Association (LBMA), “good delivery” is a set of rules governing the qualities of gold and silver bars. As the name suggests, the goal of this set of rules is to ensure bullion is produced at a standardized and high level of quality. The rules involve a variety of physical specifications, including:

• Gold bars must have a minimum fineness of 995.0 parts per thousand
• Gold bars must weigh between 350-430 troy ounces.

This size of bar is most commonly used by central banks and government treasuries, and it’s not a “consumer” product, as such, for obvious reasons, but now you know what’s meant by the term.

It’s worth saying that the gold bars that Rosland sells, though rather smaller, exceed the “good delivery” fineness specifications, so you can rest assured there.

• Use a gold price calculator for the cost of gold.
• Use a silver price calculator for the cost of silver.
• Use a gold price historical chart or a silver price historical chart to better understand how the spot price has changed over time and what may happen in the future.