Premium over spot

The premium over spot is the amount or percentage by which a coin or bar costs more than the spot value of the metal it contains. The premium covers minting or casting, transport, insurance, the margins of mint and dealer, and the risk of price moves between purchase and sale.

The premium is higher in percent the smaller the piece: a 1/10 ounce coin costs almost as much to strike as an ounce but holds a tenth of the gold. For gold, common one-ounce coins carry a premium of a few percent; for silver coins the low metal value and VAT can push it to tens of percent.

When selling to a dealer you usually receive around or slightly below spot. The gap between the dealer's selling and buying price is the spread. The premium is money paid at purchase and not recovered at sale, unless the piece has collector value.

Frequently asked questions

How much premium is normal?

A few percent for a one-ounce gold coin, more for small gold coins, and for silver coins including VAT often 20 to 40 percent over spot. Always compare the price per gram of fine weight.

Do I get the premium back when selling?

Usually not. A dealer pays around spot; only rare or sought-after pieces recover part of their premium.

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