How are your prices determined?
The spot price is determined by futures contracts. As the name suggests, these are contracts for delivery at a point in the future. However, when you purchase from us or another dealer, you do not want your item in several months, you want it as soon as possible. Therefore, we must determine a price for the current moment. This is done by taking the price set by the futures market and performing a time value of money calculation also known as an EFP (Exchange for Physical). There is no agreed-upon way to perform the time value of money calculation. Each company performs its own calculation based on their cost of money and other factors.