{"id":20294,"date":"2026-10-05T05:46:00","date_gmt":"2026-10-05T04:46:00","guid":{"rendered":"https:\/\/metalsradar.com\/glossary\/premium-over-spot\/"},"modified":"2026-10-05T07:48:04","modified_gmt":"2026-10-05T06:48:04","slug":"premium-over-spot","status":"publish","type":"page","link":"https:\/\/metalsradar.com\/ae\/glossary\/premium-over-spot\/","title":{"rendered":"Premium over Spot"},"content":{"rendered":"<div class=\"mrf-gl\"><p class=\"gl-def\">Premium over spot is the amount you pay above the metal value of a coin or bar, usually shown as a percentage. It covers minting, dealer costs, delivery and, where it applies, VAT.<\/p><aside class=\"panel gl-live\"><p class=\"gl-live-h\">\ud83c\udde6\ud83c\uddea Today in the UAE<\/p><div class=\"gl-row\"><span>Gold, 1 troy ounce (spot)<\/span><b>15,253 AED<\/b><\/div><div class=\"gl-row\"><span>Cheapest 1 oz gold coin: <a href=\"https:\/\/metalsradar.com\/ae\/product\/1-oz-krugerrand-gold-coin\/\">1 oz Krugerrand Gold Coin<\/a><\/span><b>16,115.59 AED<\/b> <small>+5.7% premium<\/small><\/div><p class=\"gl-src\">Data as of 05.10.2026, updated daily.<\/p><a class=\"btn primary\" href=\"https:\/\/metalsradar.com\/ae\/cheapest-gold-coins\/\">Compare gold coin prices \u203a<\/a><\/aside><div class=\"gl-body\"><h2>How to calculate the premium<\/h2>\n<p>The formula is short:<\/p>\n<p><strong>Premium % = (final price \u2212 metal value) \u00f7 metal value \u00d7 100<\/strong><\/p>\n<p>Metal value is the fine weight multiplied by the <a href=\"spot-price}}\">spot price<\/a> in AED. Use fine weight, not gross weight; a Krugerrand weighs 33.93 g but holds one <a href=\"troy-ounce}}\">troy ounce<\/a> of gold.<\/p>\n<h3>Worked example with round numbers<\/h3>\n<p>Imagine the metal value of one ounce is AED 11,000 (an illustration, not today's price). A dealer lists a 1 oz Britannia at AED 11,330 with delivery at AED 50. Your final cost is AED 11,380, so the premium is 380 \u00f7 11,000 = 3.5%. Another dealer lists a TT bar, which holds 3.75 oz. Metal value AED 41,250, price AED 42,075, free collection: premium 2%. The bar is cheaper per ounce, but you need a larger budget.<\/p>\n<h2>What drives premiums in the UAE<\/h2>\n<ul>\n<li><strong>Size:<\/strong> small bars of 1 g to 10 g carry the highest premiums; kilobars and TT bars the lowest.<\/li>\n<li><strong>Product:<\/strong> famous coins cost more to mint than cast bars.<\/li>\n<li><strong>VAT:<\/strong> gold below 99% purity, such as a 22 carat coin, attracts 5% VAT, which acts as an extra premium. See <a href=\"investment-gold-tax}}\">VAT on gold in the UAE<\/a>.<\/li>\n<li><strong>Demand:<\/strong> when buyers rush in, dealers widen margins.<\/li>\n<li><strong>Payment method:<\/strong> some dealers price card payments higher than bank transfer.<\/li>\n<li><strong>Delivery:<\/strong> insured shipping across the Emirates is not always included.<\/li>\n<\/ul>\n<h2>Why we compare the final price<\/h2>\n<p>A low listed price can hide a delivery fee or a card surcharge. Our <a href=\"\/ae\/cheapest-gold-coins\/\">cheapest gold coins in the UAE<\/a> ranking sorts offers by the real final price, delivery included, and expresses it as a premium so a 1 oz coin and a 1 kg bar can be judged on the same scale. For silver, where premiums run higher in percentage terms, see the <a href=\"\/ae\/cheapest-silver-coins\/\">cheapest silver coins ranking<\/a>.<\/p>\n<p>Remember the other side too. A low entry premium matters less if the dealer's buy back price is weak. The full round trip cost is the <a href=\"spread}}\">bid-ask spread<\/a>.<\/p><\/div><h2>Related terms<\/h2><p class=\"gl-chips\"><a class=\"gl-chip\" href=\"https:\/\/metalsradar.com\/ae\/glossary\/spot-price\/\">Spot Price<\/a> <a class=\"gl-chip\" href=\"https:\/\/metalsradar.com\/ae\/glossary\/bid-ask-spread\/\">Bid-Ask Spread<\/a> <a class=\"gl-chip\" href=\"https:\/\/metalsradar.com\/ae\/glossary\/vat-on-gold\/\">VAT on Gold in the UAE<\/a> <a class=\"gl-chip\" href=\"https:\/\/metalsradar.com\/ae\/glossary\/troy-ounce\/\">Troy Ounce<\/a><\/p><section class=\"mrf-faq\"><h2>FAQ<\/h2><div class=\"faq-list\"><details open><summary><h3>What is a good premium over spot for gold in the UAE?<\/h3><\/summary><div class=\"a\"><p>There is no fixed number, because premiums change daily with demand, but large bars and common 1 oz coins usually carry the lowest premiums.<\/p><\/div><\/details><details><summary><h3>Why is the premium on small gold bars so high?<\/h3><\/summary><div class=\"a\"><p>Minting, packaging and handling cost almost the same for a 1 g bar as for a 100 g bar, so the cost per gram is much higher.<\/p><\/div><\/details><details><summary><h3>Does the premium include VAT?<\/h3><\/summary><div class=\"a\"><p>It should, because VAT is part of what you pay; comparing prices after VAT and delivery gives the real premium.<\/p><\/div><\/details><\/div><\/section><details class=\"gl-src-list\"><summary>Sources<\/summary><ul><li><a href=\"https:\/\/tax.gov.ae\/Datafolder\/Files\/Legislation\/Executive%20Regulation%20of%20Federal%20Decree%20Law%20No%208%20of%202017%20-%20Publish%2017112022.pdf\" rel=\"nofollow noopener\" target=\"_blank\">Federal Tax Authority: Executive Regulation of Federal Decree-Law No. 8 of 2017 on VAT (Cabinet Decision No. 52 of 2017)<\/a><\/li><\/ul><\/details><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":0,"featured_media":0,"parent":20238,"menu_order":7,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","_glsr_average":0,"_glsr_ranking":0,"_glsr_reviews":0,"footnotes":""},"class_list":["post-20294","page","type-page","status-publish","hentry"],"taxonomy_info":[],"featured_image_src_large":false,"author_info":{"display_name":"","author_link":"https:\/\/metalsradar.com\/ae\/"},"comment_info":0,"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/metalsradar.com\/ae\/wp-json\/wp\/v2\/pages\/20294","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/metalsradar.com\/ae\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/metalsradar.com\/ae\/wp-json\/wp\/v2\/types\/page"}],"replies":[{"embeddable":true,"href":"https:\/\/metalsradar.com\/ae\/wp-json\/wp\/v2\/comments?post=20294"}],"version-history":[{"count":1,"href":"https:\/\/metalsradar.com\/ae\/wp-json\/wp\/v2\/pages\/20294\/revisions"}],"predecessor-version":[{"id":20382,"href":"https:\/\/metalsradar.com\/ae\/wp-json\/wp\/v2\/pages\/20294\/revisions\/20382"}],"up":[{"embeddable":true,"href":"https:\/\/metalsradar.com\/ae\/wp-json\/wp\/v2\/pages\/20238"}],"wp:attachment":[{"href":"https:\/\/metalsradar.com\/ae\/wp-json\/wp\/v2\/media?parent=20294"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}