Understanding Premium Over Spot

What Is Premium Over Spot?

Spot price is the market price of a Precious Metal, which fluctuates on a minute-to-minute basis, like any commodity traded on the market. Premium is the additional cost of any Precious Metal above the spot price, which accounts for the costs of doing business, such as fabrication and distribution, and perhaps additional collectible, or numismatic, costs for rare items.

Understanding premium over spot is equally important for investors and collectors. Investors naturally want to purchase items as close to the Silver spot price or Gold spot price as possible. However, collectors must also be aware of the spot price of Gold and the spot price of Silver to understand how much they are paying for the numismatic aspect of a Precious Metals product.



Spot Price Gold

No matter how ideal, it is virtually impossible to buy exactly on spot Gold price, because even reputable Precious Metals dealers have to account for business costs. Spot Gold prices show the market price for a raw ounce of unrefined metal, but there will always be a modest markup for a refined and minted product. It is normal to pay something over the spot price of Gold, but a wise buyer armed with information can make the best decision, and it is easy to follow Gold spot on any reputable website.



Spot Price Silver

Purchasing coins or bullion exactly on Silver spot is as unlikely as buying spot price Gold, but a smart buyer can get Silver much closer to spot Silver price than other Precious Metals. For the simple reason that spot Silver prices are lower, the premium over spot for Silver is also lower.

Paying attention to spot Silver cost can add up if you wish to make a large purchase, too. Just as with the spot price of Gold, watching for small fluctuations in the spot Silver price makes sense if you wish to make a considerable addition to your Silver investment portfolio.


Helpful Resources

How to Invest in Precious Metals (2:38)

See how Gold, an ancient storehouse of wealth, plays a vital role in modern investment portfolios. Watch Video

The Precious Metals Guide: Insights & Services

Written to acquaint you with Precious Metals investing and all the ways APMEX helps you succeed. Read more

Market Updates

Monitor the performance of Gold and Silver with daily market commentaries. Learn More

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