What is a coin premium?

A ‘coin premium’ is the additional cost of a bullion coin above and beyond the market value of the precious metal commodity it contains. For example, with gold at a spot price of $1,306.80 as mentioned above, an investor can expect to pay a premium of $71 over the gold price to buy the one-ounce American Gold Eagle.

What is a Gold Premium?

A premium is the percentage over the intrinsic metal value of the gold that is charged by the dealer. For example: The gold price is £1000 per troy ounce. A one ounce coin is currently selling at £1025. This means the premium over gold is 2.5% (1025/1000=1.025). We try to make our prices easy for you, as all our final prices include the premium.

Do you know premiums on gold coins?

Understanding premiums on Gold coins is important before you go to buy Gold. Have you ever noticed that two bullion coins which contain the exact same amount of the same precious metal, can sometimes sell for a different price? For example, at the time of this writing, the spot price of gold is $1,306.80 per ounce.

Why do commemorative coins have higher premiums?

Proof and Commemorative Coins Carry Higher Premiums - Usually... For obvious reasons, specially produced proof and commemorative coins and sets tend to command higher premiums than mass produced bullion coins. When they are first released, for example, the mint's production costs are higher, and its selling prices need to be higher also.