Over spot in gold refers to the premium or markup that is added to the spot price of gold when buying or selling physical gold. The spot price of gold is the current market price for an ounce of gold that is available for immediate delivery. However, the actual cost of buying or selling gold can be higher than the spot price due to various factors such as transportation costs, taxes, and dealer markups.
When buying physical gold, the over spot price includes the spot price of gold plus any additional costs associated with buying and shipping the gold. For example, if the spot price of gold is $1,800 per ounce and the dealer markup is $50 per ounce, the over spot price for the gold would be $1,850 per ounce.
On the other hand, when selling physical gold, the over spot price represents the amount above the spot price that a buyer is willing to pay. This can vary based on the demand for gold, as well as other factors such as the size and purity of the gold.
It is important for investors and collectors to be aware of the over spot price when buying or selling physical gold, as it can significantly impact the total cost or proceeds of a transaction. For example, if an investor buys gold coins with a significant dealer markup, they may need to sell the coins at a higher over spot price in order to recoup their initial investment.
Additionally, it is important to note that the over spot price can vary depending on the type of gold being bought or sold. For example, gold coins and bars may have different over spot prices due to differences in their rarity, condition, and purity.
In conclusion, over spot in gold refers to the premium or markup that is added to the spot price of gold when buying or selling physical gold. It is important for investors and collectors to be aware of the over spot price when making transactions, as it can significantly impact the total cost or proceeds of the transaction. As with any investment, it is important to do your research and consult with a financial advisor before making any decisions.