Premium
Definition
A premium is the amount above the spot price that you pay when buying physical precious metals. Premiums cover refining, minting, distribution, insurance, and the dealer's profit margin. Bars typically carry lower premiums than coins because they are simpler to produce. Premiums vary by product, dealer, and market conditions — during periods of high demand, premiums can increase significantly even if the spot price stays flat.
Why It Matters for Gold IRA Investors
Premiums are a real cost that affects your total investment. A Gold IRA with high premiums means you need a larger price increase just to break even. Comparing premiums across dealers is one of the clearest ways to reduce your costs.