Spot Price vs. Product Price 

Several factors contribute to the final price of coins and bars: 

1. Refining and Manufacturing Costs: Transforming raw metals into refined coins and bars incurs costs for minting, quality assurance, and crafting unique designs.
2. Supply Chain Expenses: From transportation to distribution, the journey of precious metals involves logistical expenses that affect final pricing.
3. Product Characteristics: Limited mintage, unique features, and the popularity of specific coins or bars can drive up their value.

Additionally, premiums over spot vary based on factors like unit size, with larger bars often carrying lower percentage premiums, and metal type, as gold typically has smaller premiums than silver. 

The spot price reflects the dynamic forces of the commodities market, updating in real time based on global trading activity. However, the product price for physical gold and silver also accounts for refining costs, dealer margins, and the intricacies of supply and demand. For example, a coin with limited availability or special features may trade at a significant premium over spot. 

Dealer Margins and Production Costs 
Physical gold and silver products include costs beyond the raw commodity price: 

• Production Costs: Minting coins or crafting bars involves refining, quality assurance, and packaging, all of which contribute to the price. 
• Dealer Margins: Dealers add a margin to cover operational expenses, secure transactions, and ensure product quality. Transparency in these margins is key to building trust with buyers. 

Gold and silver coins and bars are available to individual investors in sizes ranging from 1 gram to 1 kilogram (32.15 Troy ounces), with the 1 Troy ounce (31.1 grams) weight being especially popular. These include gold and silver bars, as well as coins such as the American Eagle, American Buffalo, Canadian Maple Leaf, and South African Krugerrand. The price charged by dealers reflects not only the current spot price of gold or silver but also additional costs. These include refining the metal to remove impurities, manufacturing it into usable forms (such as minting coins or pressing/pouring bars), transportation, distribution, administration, and other supply chain expenses. As a result, physical gold and silver products typically trade at a premium of 2% to 15% above the spot price on the COMEX. It’s important to note that this premium is not the same as sales commissions, transaction fees, or dealer margins. Premiums tend to decrease as unit sizes increase (e.g., a 1-kilogram bar carries a lower percentage premium than a 1-gram bar) and are generally lower for gold than for silver. Supply and demand also influence pricing. Coins or bars with limited mintage or particularly desirable designs may command higher premiums due to their popularity in the market. 

The above information does not apply to the market for Investment Grade Coins. These coins are certified by third-party organizations to verify their year of issue, condition, and rarity. Examples include a 2012 Gold American Eagle in Proof 70 condition or a Double Eagle from the Old West graded in MS65 condition. The value of investment-grade coins is driven by supply and demand, much like other high-end tangible assets such as real estate, fine art, antiques, and classic cars. Unlike bullion, their market value is not tracked on an index. However, recent sales data, auction results, and professional appraisals can provide a reliable estimate of their current worth. Investment-grade coins are often viewed as a more secure investment due to their historical stability, lower market volatility, and steady performance. Rarity is the primary factor that increases their value over time. Choosing the right coin is essential, and our team is here to help guide you in making an informed selection.