Premium Over Spot Calculator

The premium is the amount you pay above the raw metal (spot) price when buying physical precious metals. It covers manufacturing, distribution, dealer margins, and market demand. Premium = Purchase Price - Melt Value.

Gold bars typically carry premiums of 2-5% over spot for larger sizes (1 oz+) and 5-10% for fractional sizes. Government-minted bars from established mints tend to command slightly higher premiums due to their recognized assay.

Coins carry higher premiums because of minting costs, legal tender status, recognizability, and collectible appeal. Government-issued coins like American Eagles or Canadian Maple Leafs have the highest buyback values, partially offsetting their higher purchase premiums.

Higher premiums can be justified for highly recognizable products (Eagles, Maples) that are easier to sell, fractional sizes for barter/divisibility, key-date numismatic coins, or during supply shortages when availability is limited.

Yes. Premiums expand during high demand or supply shortages (like during economic crises) and compress during calm markets. In 2020, silver coin premiums exceeded 100% of spot due to mint shutdowns. Premiums also tend to be lower in bull markets as spot prices rise.

Premium % = ((Purchase Price - Melt Value) / Melt Value) × 100. For example, if you pay $2,200 for a 1 oz gold coin and spot is $2,000, the premium is ($2,200 - $2,000) / $2,000 × 100 = 10%.