Guide Pricing
How premiums over spot work. And how to compare them.
Why a 1 oz coin costs more than an ounce of spot, why small sizes cost more per ounce, and how to read the “% over spot” figure on our products.
Questions? Call the desk at 1-855-528-4653
What “spot” means
The spot price is the wholesale price per troy ounce for large Good Delivery bars traded between banks in London, for settlement two business days later. Twice a day for gold and once a day for silver, the LBMA benchmark prices are set by auction, administered by ICE Benchmark Administration. Between those auctions, the spot price moves with the market.
Spot is a reference point. Nobody buys a single coin at spot, because spot is the price of a 400 oz gold bar or a 1,000 oz silver bar changing hands in London.
What a premium is
The premium is the difference between a product’s price and the value of the metal it contains at spot. It covers the cost of turning wholesale metal into a coin or small bar, getting it to you insured, and the dealer’s margin. Our prices are computed from the global underlying markets and confirmed when you place your order.
Why premiums differ
- Size. Fabrication cost is largely fixed per piece, so small items carry more per ounce. The LBMA notes that a 1 gram gold bar is considerably more expensive, ounce for ounce, than a 1 oz bar.
- Coins versus bars. Sovereign mints charge for their coins’ design, security features and legal tender status. The U.S. Mint does not sell bullion coins to the public; it sells them to authorized purchasers at the market price plus a premium to cover minting, distribution and marketing, before any dealer adds its own.
- Brand and packaging. Sealed assay cards, certificates and well-known designs cost more to produce.
- Demand. When many buyers want the same product at once, its premium can widen; when demand is quiet, it can narrow.
How to compare products
Every in-stock coin and bar on our site shows a live “% over spot” figure under its price. It is the product price compared with the spot value of its fine metal, so a 1 oz coin and a 10 oz bar can be compared directly. Sale items also show the dollar savings.
As a rule of thumb, the lowest premiums are on larger bars from major refiners, and the highest are on small fractional coins and collectibles. Many buyers balance the two: low-premium bars for most of their metal, and coins for recognizability and flexibility. See our silver bars guide.
When you sell
We run two-way markets, so you can sell back to us at a live price. What you receive depends on the market and the product at the time, so call 1-855-528-4653 for a live bid. See selling metals.
Sources: LBMA OTC Guide: the price; LBMA precious metal prices; LBMA, The Guide; U.S. Mint authorized purchasers.
What does “% over spot” mean on Ausecure?
It is the product’s live price compared with the live spot price for the metal it contains: (price ÷ (fine ounces × spot)) − 1. It updates as prices move, so you can compare products on the same footing.
Why do small coins have bigger premiums?
Making, packaging and distributing a 1/10 oz coin costs nearly as much as a 1 oz coin, but the cost is spread over a tenth of the metal.
Is the spot price what I pay?
No. Spot is the wholesale price for large Good Delivery bars in London. Every retail coin and bar sells at a premium over spot.
Do I get the premium back when I sell?
Not necessarily. When you sell, the price we pay is set by the live market and the product. Recognized bullion coins and bars from major refiners are usually the easiest to sell. Call 1-855-528-4653 for a live bid.
Why is your price different from yesterday?
Our prices follow the live market and are confirmed when you place your order.
