The short version: Spot is the price of raw metal in bulk. A finished coin or bar costs more because it has to be minted, shipped, insured and stocked. That extra is the premium.
If spot gold is quoted per ounce, why does a 1 oz gold coin cost more than that? Because spot is the price of raw metal traded in large lots, not a finished product in a display case.
What the premium covers
- Making it: refining, minting or casting, and quality control.
- Getting it here: wholesale distribution, armored shipping and insurance.
- Keeping it in stock: secure storage, the cost of holding inventory, and running the store.
- Demand: when many people want to buy at once, premiums rise across the market.
Why premiums differ between products
Government-minted coins such as American Eagles usually carry higher premiums than generic bars, because of their recognition and their minting costs. Small sizes (1/10 oz, 1/4 oz) cost more per ounce than larger ones, because it costs nearly as much to mint a small coin as a large one.
The buy/sell spread
Every dealer has two prices: what they sell for and what they buy back for. The gap between them is the spread. A narrow spread means you lose less if you buy now and sell later. Our “We buy” and “We sell” labels are explained on the Questions page.
Comparing prices fairly
Compare the total you pay per ounce of pure metal, and how much the same dealer would pay you back for it. Call (702) 725-4344 for current prices.
Questions about your pieces?
Call or text (702) 725-4344, email support@dg-exchange.com, or send us a message.