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
Understanding premium over spot is equally important for investors and collectors. Investors naturally want to purchase items as close to the spot price as possible. However, collectors must also be aware of the spot price to understand how much they are paying for the numismatic aspect of a Precious Metals product.
GOLD & SILVER SPOT PRICE
It is virtually impossible to buy exactly at spot price. Spot Gold & Silver 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, but a wise buyer armed with information can make the best decision, and it is easy to follow Gold & Silver prices on any reputable website.