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Gold can be traded for immediate delivery and payment. The agreed price is called the spot price, also known as the cash price. The term "spot" comes from the fact that cash is paid in full for the gold "on the spot."
When someone decides to buy gold, they have a choice of where to buy it. There are several markets that trade gold around the world, and each has itís own group of buyers and sellers. These markets are called spot markets. For the most part, the spot price for gold is very similar in all of the spot markets at any given time; however, it is rarely identical. Most people buying gold in the various spot markets are buying and selling gold for investment purposes, and rarely, if ever, actually physically touch their gold.
For those that wish to physically hold their gold, there are many places selling gold either in coin stores or precious metal dealers. Usually, when purchasing gold from these stores or dealers, the buyer will pay a price called over spot. For example, one may call a coin store that sells gold, and be quoted "5% over spot" which means that they will charge 5% more than the spot price gold being quoted by the spot market the store owner uses for the spot price.