Precious Metals Pricing

The difference between the price of a bullion product and the market value of its precious metal content (the “premium”) is largely determined by:

  • refining and minting costs (smaller coins tend to have higher premiums)
  • cost of secure transport and storage
  • insurance and hedging costs
  • dealer’s financing and administrative costs
  • dealer’s profit margin
  • market supply and demand (premiums tend to be higher in bull markets)

We regularly check our premiums against other providers of bullion products in order to be competitive. They have historically ranged from 0.8% over spot for 1 kilogram bars to 11% over spot for smaller bars and coins in times of high volatility.