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Understanding and comparing the premium on gold

The premium is the difference between the spot price and the purchase price. It covers minting, logistics, insurance and the dealer's margin, and for gold it runs from about two percent on kilo bars to five percent on gram units. It is the only line where dealers genuinely differ — and therefore the number you should be comparing.

As at July 2026 5 min. read MetalReserve editorial team

In brief

Premium = purchase price minus spot price, expressed as a percentage.
It falls as the unit gets bigger: 5% at 1 g, around 2% at 1 kg.
Always compare the final price including shipping, not just the percentage.
When you sell, the dealer pays spot minus a spread — the two together are your round-trip cost.

What the premium is made of

The spot price is the exchange price for unworked fine gold. Turning that into a serial-numbered bar in your letterbox costs real money — and that is what sits in the premium.

  • Minting and processing: the refinery rolls, stamps, tests and packs. This part costs almost the same per piece, which is why it weighs far more heavily in percentage terms on small units.
  • Certification: the assay card, serial number and documentation cost money — and make the metal easier to verify later.
  • Logistics and insurance: transport from the refinery to the dealer and on to you, insured at every stage.
  • Dealer margin: holding stock, hedging price risk, and the actual profit.

How it varies by size

Unit
Spot value
Premium approx.
Final price approx.
1 g gold bar
€74
5%
€78
10 g gold bar
€744
4%
€773
1 oz gold bar
€2,312
3%
€2,382
100 g gold bar
€7,435
2.5%
€7,621
1 kg gold bar
€74,350
2%
€75,837

The gap between 1 gram and 1 kilogram is three percentage points. On a €10,000 investment that is €300 — for an identical amount of metal.

How to compare dealers fairly

Percentages on their own are not enough, because they can refer to different reference rates. Compare the final amount for an identical product at the same moment instead — and count everything that gets added.

  • Shipping and insurance: a low product price plus €25 of shipping can cost more than a higher price with free delivery.
  • Payment fees: some dealers add a surcharge for card or PayPal. With crypto payments there should be no surcharge at all.
  • Reference rate: reputable dealers show the spot price they are working from. If it is hidden, comparison is impossible.
  • Delivery time and availability: “on request” at a headline price is not an offer.

On our site, every product page shows the spot price and the premium separately. That way you can check the arithmetic instead of taking our word for it.

The other side: the buy-back spread

When you sell, a dealer does not pay the spot price but somewhat below it — typically one to three percent. So your true round-trip cost is the premium on the way in plus the spread on the way out.

A worked example: you buy an ounce at a three percent premium and later sell at a two percent discount. The gold price has to rise by around five percent for you to break even. Buy in small units and you need correspondingly more.

Common questions

What is the premium when buying gold?

The premium is the markup over the spot price. It covers minting, certification, logistics, insurance and the dealer's margin, and for gold it runs from about two percent on kilo bars to five percent on gram units.

Why is the premium higher on small bars?

Because minting, packaging and documentation cost almost the same per piece, whether it contains one gram or one kilo. On small units that fixed block is spread across less metal.

How do I compare dealers properly?

By the final amount for an identical product at the same moment, including shipping, insurance and any payment fees. Percentages alone are misleading when the reference rate is not disclosed.

Do I get the premium back when I sell?

No. When you sell, the dealer pays the spot price minus a spread of typically one to three percent. The premium and the buy-back spread together make up your round-trip cost.

All figures are typical magnitudes as at July 2026 and vary with market conditions and availability. Not investment advice.

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