The spot price is the market price for one troy ounce of a metal. Almost nobody sells you a coin or bar at exactly spot. The extra you pay is the premium.
What the premium covers
- Minting or refining the coin or bar.
- Shipping and insurance to the dealer.
- The dealer’s costs and profit.
- Demand: popular coins often carry more premium than plain bars.
How to work it out
Take the price before VAT, subtract the metal value (spot price × troy ounces of metal), and divide by the metal value. If a 1 oz coin’s metal value is £40 and you pay £44 before VAT, the premium is £4, or 10%.
Why small items cost more
Making a 1 g bar costs roughly the same effort as making a 1 kg bar, but the 1 g bar holds far less metal. So smaller items carry a bigger premium per ounce. See the bar size guide for how the calculator adjusts for this.
Don’t forget the rest of the cost
Delivery and VAT change what you really pay. The calculator shows an “all-in” figure for that reason.
Not financial advice. See the terms.