Gold Premiums? | Price Markups for Gold Bullion Products

The price investors pay for gold bullion products above the fluctuating spot price for gold is the gold premium.

We will define gold bullion price premiums again in so many words, for gold bullion market participants, so we are clear.

Gold Premium - (n) the price for a gold bullion product above the live gold spot price.

The gold premiums or prices for gold bullion products above the gold spot price will vary depending on a multitude of factors.

First and foremost, the type of gold bullion products you potentially buy will have much to do with the size of the gold premiums getting asked for and or charged to buyers.

For instance, the gold premium per troy ounce will be much slimmer on a 400 oz gold bullion bar over 1 oz Canadian Maple Leaf coin for example.

Average Markup on Gold Bullion? | Key Factors

- Gold bullion supply and demand factors at the moment.
- Economic conditions globally, nationally, and locally.
- Volumes of gold bullion products getting bought.
- The form or kinds of gold bullion products getting sold.
- The gold bullion dealer and buyers objectives begin equally met.

Gold Premiums High | Fall 2008 History

In the fall of 2008, gold premiums on gold coins and other most popular gold products gapped higher and diverged respective to the then plunging gold spot price. That was an example when key gold premium price factors reacted strongly to many companies and financial institutions going bankrupt globally.

How much over spot should I pay for Gold?

When the gold bullion market is calm and flush with physical gold bullion product supplies like it currently is, late summer 2019. It is fair to not pay more than a few percentage points over the fluctuating gold spot price even if you are only buying small one troy ounce gold bars.

Conversely, with gold coins, you can expect to pay anywhere from five to a few percentages over the gold spot price depending on the kind of gold bullion coins you are buying as well in what volume you are buying them in.

Low Premium Gold Bullion Products

American Gold Eagle Coins: +4% Gold Premiums in Calm Markets

Canadian Maple Leaf Coins: +3% Gold Premiums in Calm Markets

1 oz Gold Bars: +2% Gold Premiums in Calm Markets

South African Gold Krugerrands: +3% Gold Premiums in Calm Markets

When you go to sell gold bullion products here are the gold premiums you can expect when selling to competitive gold dealers in volume.

Thanks for visiting our website here at SD Bullion.

Before you go, be sure to pick up our free SD BULLION GUIDE to learn best gold buying and gold selling practices.


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James Anderson
James Anderson
Senior Market Analyst & Content

A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.

Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades...