Premium

Premium is the amount a coin sells for above the market value of the metal it contains. It is the gap between the spot price of the metal in the coin and the price actually paid for the coin.

Premium is not a markup invented by dealers. Part of it is production and distribution: the mint charges above metal cost to strike and package a coin, and that cost passes down the chain. Part of it is supply and demand for that specific product. American Silver Eagles usually carry a higher premium than generic silver rounds because more buyers want them. Proof and burnished versions carry more than standard bullion strikes because they are produced in smaller quantities with more finishing work.

Premium varies by product, by year, and by market conditions. It also changes over time, which means the premium you pay when buying is not necessarily the premium you receive when selling. Older US coins add another layer: a pre-1933 $20 double eagle or a scarce Morgan dollar carries premium tied to collector demand and condition, not just to metal.

Understanding premium is the main thing that separates an informed purchase from an expensive one. Call 855-344-2646 to speak with a Texas Bullion Exchange specialist about premiums on what you are considering.