The spot gold price is only one part of a bullion product's final price. Premiums cover manufacturing, sourcing, logistics, insurance, dealer margin, and market availability.
Why premiums vary
Small coins, limited releases, and high-demand products can carry higher premiums. Larger bars may have lower premiums because fabrication and handling costs are spread over more metal.
Premiums and liquidity
A low premium is useful, but liquidity matters too. A widely recognised coin at a slightly higher premium may be easier to sell than an obscure product.
How quantity pricing helps
Quantity tiers can reduce the effective premium per item as order size increases, giving larger buyers better value while preserving transparent pricing.
Key investor takeaways
- Spot price and product price are not identical.
- Premiums reflect real operational and market costs.
- Liquidity should be considered alongside price.
Important: This article is market commentary only and is not personal financial advice. Always consider your own circumstances before buying or selling precious metals.
