Unlike most gold bars that will likely never sell for more than their small
premium over the spot price of gold, most gold coins will increase in value and command increasing premiums over spot gold as they age, depending on market factors.
It's usually between 3 % and 5 %
over the spot price for gold bullion (more for small, fractional sovereign coins and less for larger bars).
Major dealers went out of stock and any seller of popular bullion could get a 10 — 25 % premium
over the spot price.
Minting and fabrication costs represent the largest part of the total premium
over the spot price.
Buyers pay a premium
over the spot price to cover the costs of producing the gold, as well as distribution costs and dealer markups.
However, they recently brought back the one - tenth ounce gold proof coins for sale after a supply shortage, only to offer it at 35 %
over spot price.
This is critical because in times when bullion coins and bars are in short supply and sell for large premiums
over the spot price, getting cash based on the spot price is not nearly as good as getting your bullion back.
Based on comparing the conversions I experienced over the last year compared to the bank of Canada noon rate for US dollars the currency conversion cost is 1.7 %
over the spot price each way.
Premiums of 10 - 20 %
over spot price are very common.
But buying gold bullion can be expensive — you pay a premium
over the spot price and storage fees...