What is a Fair Premium on Gold and Silver?

02-15-12 • Gold Scams Exposed Blog

When purchasing gold and silver bullion you are most likely motivated by the spot price, or market driven price, of your desired commodity. However, when it comes to purchasing your physical bullion there's a little thing called a "premium" that can increase your overall purchase by a significant margin. In an ideal world you'd get what you paid for at the intrinsic price, but in the wonderful world of business and economics the product must be processed, shipped to a wholesaler, then sometimes to a retail distributer, and finally to your bullion dealer. Precious metals are no different than the shirt on your back and the iPhone in your pocket. There's a "premium" or an additional cost to bullion above and beyond the market value of the precious metal commodity it contains.