Thus, although spot prices have moved higher, the market does not expect them to stay there.
The expected spot price twelve months in the future may actually still be $75.
Now suppose a few weeks pass and nothing happens to the spot price.
Individuals do not normally buy gold at this spot price, however.
Natural gas issues fell on speculation that the increase in spot prices might come to an end.
Thus, the current basis is equal to the expected increase in the spot price by delivery.
Some traders said spot prices may find a floor at $1,300 a ton.
By the end of 2004, spot prices were significantly higher and the expected declines much smaller.
The spot price of platinum was up almost 18 percent for the year, and the future looked good from several angles.
Their actual selling prices vary based on the current spot price of gold.