Premium over spot is the difference between a dealer's selling price and the metal value of a coin or bar, usually shown in dollars or as a percentage of spot.
How to calculate the premium
Premium (%) = (price per ounce of fine metal minus spot) / spot x 100. Example with fixed numbers: spot gold is $2,000 and a 1/10 oz American Gold Eagle costs $230. Its metal value is $200, so the premium is $30, or 15%. A 1 oz Eagle at $2,080 has a premium of $80, or 4%. Small coins almost always carry a higher premium per ounce because minting and handling cost about the same regardless of size.
What drives premiums in the US
- Product type. Large bars and generic silver rounds cost the least over spot. US Mint coins cost more, partly because the Mint sells only to authorized purchasers who add their own margin.
- Size. Fractional coins and 1 g bars carry the highest premium per ounce.
- Demand. When buyers rush in, premiums on American Eagles and Silver Eagles can rise quickly while spot barely moves.
- Payment method. Many US dealers list a lower price for bank wire, ACH or check and a higher one for credit cards or PayPal.
- Condition and packaging. Proof, graded or special-release coins are numismatic and priced on scarcity, not metal.
Hidden costs that don't show in the premium
A dealer can advertise a low premium and then add shipping, insurance or a small-order fee. In some states sales tax is added too; see how states tax bullion purchases. The only fair comparison is the delivered price per ounce of fine gold or silver.
How metalsradar compares premiums
We collect prices from US dealers, add shipping for the order size and rank offers by the final cost. Start with the cheapest gold coins with shipping included or the lowest-premium silver coins. To compare one product across dealers, open a product page such as the 1 oz Gold Buffalo price list.
Remember the other side of the trade. The premium you pay is only partly returned when you sell, because dealers buy back near or below spot. Premium and the spread together show the real cost of owning metal. Keep the full purchase price on file: the IRS counts it as your cost basis.
Related terms
Spot Price Bid-Ask Spread Bullion Precious Metals Sales Tax
FAQ
What is a good premium over spot for gold?
A low premium depends on the product and the market, so compare the same product across dealers using the delivered price per ounce.
Why are American Eagle premiums higher than bars?
Eagles pass through the US Mint and its authorized purchasers before reaching a dealer, and many buyers prefer them, so they cost more than bars of the same weight.
Do I get the premium back when I sell?
Usually only part of it, because dealers buy bullion at or near spot, and popular coins recover more of their premium than generic bars.