Spot Price vs. Product Price 

The final retail price of physical precious metals includes more than just the market value of the metal. Several key components influence what you'll pay when purchasing gold and silver bullion:

1. Refining and Manufacturing Costs 

• Refining to remove impurities
• Minting and pressing with detailed designs
• Packaging and quality assurance

2. Supply Chain and Distribution Costs 

• Transportation from refineries to vaults or dealers
• Insurance, storage, and secure handling
• Administrative overhead

3. Product Characteristics 

• Limited mintage or collectible designs boost scarcity
• Weight and purity directly affect pricing
• Popular bullion coins, such as the American Eagle, Canadian Maple Leaf, or South African Krugerrand, often command higher demand-driven premiums 

While the spot price is determined by real-time global trading activity, the retail price of physical bullion also includes production, packaging, dealer services, and market demand. For example, a 1 oz Gold American Eagle may have a spot price of $2,000 but sell for $2,100 to $2,200, depending on availability and demand. 

Premiums over spot—the extra cost paid above the market rate—can range from 2% to 15%, depending on: 

• Weight: Larger bars (like a 1 kilogram bar) carry lower percentage premiums
• Metal Type: Gold typically has lower premiums than silver
• Design & Rarity: Unique coins or those with collector interest may cost more

Learn more about live pricing through our live gold price chart. 

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 /product/2012-gold-american-eagle-set-proof-70 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.