Spot Prices on the Greysheet: How It's Done
There have been multiple inquiries of late regarding the spot gold, silver, and platinum prices which are printed on the cover of the Greysheet each week. As a result, here is the full explanation of how and why we print those numbers.
In order for our newsletters to be received by users in a timely manner, we publish the Greysheet seven to eight calendar days prior to the cover date. This is the amount of time required for our printers to produce the physical sheets, prepare them for mailing, and the postal service to deliver. Therefore, for example, on the Greysheet that has a cover date of July 15th, 2016, the editors close out the spot prices late on Thursday July 7th or early on Friday July 8th. As a result, the prices of precious metals between when the prices are closed and when readers receive the sheet is obviously not going to be the same. However, that does not make the numbers unusable.
The only reason we print the spot prices on the cover with the related bullion products is so that users can calculate the premiums or amount over spot a given item is trading for, and then apply that using the current spot price at the time. This has always been the case throughout the history of the Coin Dealer Newsletter. Everyone who is trading in bullion must be using the up to the minute spot prices, which no printed media could ever deliver.
Here is an example using the July 15th sheet. The gold spot price is printed as $1359.40. Say you are looking to buy some proof half ounce gold eagles, which are priced at $807. By simply taking:
($807 x 2) -- $1359.40 = $254.60
So it becomes clear that these coins are trading at $255 over spot. Now apply that premium to whatever the current gold spot price is and you will have your coin price.
Fortunately, we have added a live precious metals ticker directly on the front page of our website, http://www.greysheet.com. These prices come from a feed directly from the New York spot market, and our source is the same that delivers data to major brokerage houses. We also have the live spot prices on this blog, http://blog.greysheet.com, along with interactive historical charts.
If there are any further questions, please email firstname.lastname@example.org.