A bullion premium is the amount paid above the metal’s spot value. For example, if silver spot is $50 per troy ounce and a one-ounce silver coin costs $55, the premium is $5 per ounce. That premium reflects production costs, minting, distribution, dealer inventory, market demand, and product popularity.

Premiums matter because they affect a stacker’s cost basis and break-even point. Someone who pays a very high premium may need the spot price to rise significantly before the metal can be resold at a profit. This is especially important with silver because percentage premiums on small retail products are often much higher than those on larger silver or gold products.

Stackers should compare premiums across sovereign coins, private rounds, bars, and 90% “junk” silver before buying. A beautiful coin is not automatically a good stacking purchase if its premium is too high relative to its likely resale value.

My philosophy: Let the deals dictate your buys!

*Not financial advice. Stay stacked!