How Much over Spot should I pay for Silver Bullion?

To know how much you should pay for silver bullion over spot silver prices, you will need to consider many factors.

We will dig into silver bullion premiums versus spot silver prices here. Know that the correct answer will depend upon your objectives mostly.

Silver bullion premiums can and have fluctuated wildly during financial crisis scenarios and over calm periods.

In the fall of 2008, for instance, silver premiums exploded in percentage terms on popular silver bullion products. Over the last few years, silver bullion prices have been historically low over the fluctuating silver spot price.

Here we dig into the basics surrounding, "What are fair prices for silver bullion products?"

Why are junk silver prices or American Silver Eagle coin prices so high over the silver spot price?  

Silver Bullion vs. Spot Price

How much should I pay for silver over spot Silver bullion vs spot price chart

Why does silver bullion cost more than the spot silver price?

In general, silver bullion buying and silver bullion selling prices bifurcate the fluctuating spot silver price discovery mechanism. 

In other words, when you go to buy silver bullion products, the price per ounce of silver bullion will be priced above the silver spot price.

When and if you go to sell silver bullion products, the price per ounce you receive per ounce of silver bullion will be priced slightly below the silver spot price.

There are some exceptions to this generalization; for instance, American Silver Eagle Coins typically yield $1 or more per ounce over the silver spot price.

See our selling silver bullion price breakdown.

Silver Bullion Product Price Premiums Vary

how much over spot should i pay for silver Silver Bullion Premiums Vary SD Bullion

As a general rule, the prices you will pay for various silver bullion products will depend on varying factors:

- Which silver bullion products are you buying? (Silver Coins / Silver Rounds / Silver Bars)

- What size silver bullion coin, round, or bar are you potentially buying? (smaller silver bullion products tend to carry higher premiums)

- What amount of silver bullion are you buying? (with more buying power, you can reduce the silver price per ounce you pay over spot)

- What are silver bullion supply and demand factors like at the moment? (when silver bullion inventories are limited, price premiums will be higher over spot)

- The highest silver bullion price per ounce ask will typically be with government silver mint coins. (private silver rounds vs. bars will get priced lower generally).

- Who is the silver dealer you are considering? Look if they have expensive high overheads, research how long and reputable their track record is too. They may not be able to afford to offer you a reasonable silver price. Worse, they may not deliver on their word.

Here on our SD Bullion blog, we have written about which may be better Silver Coins vs. Bars as well as Silver Coins vs. Rounds.

We also have a blog about SD Bullion customer buying best bullion products by fiat US dollar purchasing totals. There you can learn which silver bullion products the crowd buys most often and why.

Trying to choose which silver bullion products are best is not easy, especially for beginners.

Take your time learning as much as you can about silver bullion product differences before buying.

Silver Price Performance Full Fiat Currency Era

How much should I pay over spot for Silver Price Chart

The most popular silver bullion product we sell by purchase volume is the 1 oz American Silver Eagle coin.

If you are buying 1 oz of these popular silver bullion coins, the buy-sell spread can be over 10%.

While prudent silver bullion investing is long term trade, one should note that the silver spot price is very volatile. Silver prices generally move hard downwards during silver bear markets, and violently to the upside in silver bull markets. In the chart above and below, you can see silver prices historically drop and or rise by 10% in short timeframes.

Silver Price Rises can be Fast

How much should I pay over spot for Silver Price Daily Run Chart.png

 If you find this information valuable, make sure also to pick up our free SD Bullion Guide by email before you leave.

Thanks for visiting us here at SD Bullion.


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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...