Gold premiums explained: what you pay over spot, and why
A gold premium is the amount you pay above the value of the pure gold in a coin or bar, usually shown as a percentage of spot. In our October 2026 checks, popular 1 oz coins and bars cost 1.68% to 9.84% over spot, depending on the dealer, the country and how you paid.
Two dealers can sell exactly the same coin, made by the same mint, with the same gold inside, and charge prices more than £130 apart. The difference is the premium. Once you can work it out, you can compare any quote in seconds.
What is a gold premium, in plain English?
Every gold price starts from the spot price: the live wholesale price of one troy ounce (31.1 grams) of pure gold. Spot is what banks and refiners pay each other for large bars. Nobody buying a single coin gets that price.
The premium is everything you pay on top of the gold's spot value. It pays for:
- Making the item. Refining, rolling, striking or casting, and packaging. A mint charges its distributors more than spot to begin with.
- Getting it to you. Wholesale shipping, insured delivery, checking stock is genuine.
- Running the business. Staff, premises, card fees, insurance and the dealer's profit.
- Supply and demand. When a coin is popular and stock is short, sellers can charge more.
The US regulator for commodity markets, the CFTC, describes the price of physical metal as spot value "plus the dealer's markup or 'premium'", and lists the dealer's buy-back price as one of the first things to ask about. Both sides matter, as you will see below.
How do you calculate a gold premium?
The formula is the same for every coin and bar, in every currency:
Premium = price ÷ (fine gold in troy ounces × spot price) - 1
"Fine gold" means the pure gold content, not the total weight. A 1 oz Britannia, Maple Leaf, Kangaroo or 1 oz bar contains exactly one troy ounce. A 22 carat coin such as the American Eagle or Krugerrand also contains one ounce of pure gold, but in a heavier coin. A full Sovereign holds 0.23542 oz.
Find the gold value
On 10 October 2026, spot was £3,171.03. A 1oz Britannia's gold was worth 1 × £3,171.03 = £3,171.03.
Divide the price by it
Chards' price for its best-value Britannia was £3,259.95. £3,259.95 ÷ £3,171.03 = 1.0280.
Subtract 1
1.0280 - 1 = 0.0280, so the premium was 2.80%, or £88.92 in cash.
Try it with any quote. The calculator below loads the live spot price; change the currency to match your dealer.
Check the premium on a dealer quote
Uses the live spot price unless you type your own. Fine gold weights are troy ounces of pure gold.
What premiums are dealers charging right now? Real data from four countries
These are prices captured automatically from dealers' own product pages for a single coin or bar, in the GoldVetted price check, 10 and 11 October 2026. The gold market was closed on both days, so spot did not move during the checks. Full detail is in the premium tracker.
| Country and spot | Seller and product | Price | Premium |
|---|---|---|---|
| Canada (CA$5,978.73) | Gold Stock Canada, Maple Leaf, random year (wire) | CA$6,079.19 | 1.68% |
| Canada | Canadian PMX, 2026 Maple Leaf (wire) | CA$6,167.69 | 3.16% |
| UK (£3,171.03) | Chards, Britannia, best value | £3,259.95 | 2.80% |
| UK | Hatton Garden Metals, Britannia, best value | £3,281.19 | 3.47% |
| UK | Atkinsons Bullion, CGT-free 1oz coin, best value | £3,285.02 | 3.59% |
| UK | The Royal Mint, Britannia 2027 | £3,397.16 | 7.13% |
| Australia (A$6,012.71) | The Perth Mint, 1oz cast bar | A$6,184.39 | 2.86% |
| Australia | Ainslie Bullion, Perth Mint Swan minted bar | A$6,185.24 | 2.87% |
| Australia | Ainslie Bullion, Kangaroo coin, various years | A$6,240.24 | 3.78% |
| US (US$4,195.60) | SD Bullion, American Eagle, random year (wire) | US$4,335.39 | 3.33% |
| US | APMEX, American Eagle, random year (wire) | US$4,424.29 | 5.45% |
GoldVetted automated price check: UK and US on 10 October 2026, Canada and Australia on 11 October 2026. Spot from gold-api.com at the time of each check. Some dealers, including JM Bullion and BullionByPost, do not allow automated price checks, so we do not publish a premium for them.
Two things stand out. First, the cheapest seller in each country was within about 1.7 to 3.3 points of spot. Second, the spread within a country was often wider than the spread between countries: a 1oz Britannia cost £137.21 more at the Royal Mint than at Chards, for an identical coin. For dealer-by-dealer guidance, see where to buy gold in the US, UK, Canada and Australia.
Why do gold premiums vary so much?
Five things explain almost every difference you will see.
| Factor | Lower premium | Higher premium | Example from our data |
|---|---|---|---|
| Product | Plain bars, common bullion coins, mixed years | Current-year coins, proofs, collector and design coins | Royal Mint 1oz Lunar proof: 155% of gold value, vs 7.13% for its bullion Britannia |
| Size | 1 oz and larger | 1/4 oz, 1/10 oz, gram bars | 1/10 oz Eagle 17.27% vs 1 oz Eagle 3.33% (SD Bullion, wire) |
| Payment | Wire, cheque, bank transfer | Card, PayPal | APMEX Eagle 5.45% by wire, 9.84% by card |
| Dealer | High-volume online dealers | Mint shops, small retailers, TV sellers | UK Britannia: 2.80% at Chards, 7.13% at the Royal Mint |
| Market stress | Calm markets, plenty of stock | Panic buying, supply shortages | 2020: US Mint cut supplies; premiums hit record levels (Bloomberg) |
Product: bullion or collectable?
A bullion coin is priced on its gold. A proof or rare coin is priced on what collectors will pay, and the gold is only part of it. On 11 October 2026, the Royal Mint's 2026 Horse 1oz Lunar proof cost £4,905, against £3,171.45 of gold. Our guide to bullion vs numismatic coins explains when that extra makes sense. Even among bullion, "best value" or mixed-year coins were the cheapest in every country we checked; the newest year usually costs a little more.
Market stress: why premiums jump in a panic
Mints cannot double production overnight. When demand spikes, stock runs out and premiums widen. In July 2020, Bloomberg reported that the US Mint had reduced the gold and silver coins it supplied to its authorised distributors as the pandemic slowed production, and that premiums on some coins had "surged to record levels". The lesson: a premium that is fair in a calm month can be high in a rush, and the reverse.
How much more does paying by card cost?
Card companies charge the seller a fee on each payment. On a thin bullion margin, most dealers pass it on by showing two prices.
| Dealer | Coin | Wire or cheque | Card | Extra cost | Points added |
|---|---|---|---|---|---|
| SD Bullion (US) | American Eagle | US$4,335.39 | US$4,516.03 | US$180.64 | 4.31 |
| APMEX (US) | American Eagle | US$4,424.29 | US$4,608.64 | US$184.35 | 4.39 |
| Gold Stock Canada | Maple Leaf | CA$6,079.19 | CA$6,307.16 | CA$227.97 | 3.81 |
| Canadian PMX | Maple Leaf | CA$6,167.69 | CA$6,414.40 | CA$246.71 | 4.13 |
| Jaggards (Australia) | Perth Mint Swan bar | A$6,193.19 | A$6,301.57 (standard price) | A$108.38 | 1.80 |
GoldVetted automated price check, 10 to 11 October 2026. Jaggards' lower price applies to bank transfer or cash. UK dealers in our check showed a single price.
In other words, paying by card more than doubled the premium on an Eagle at SD Bullion, from 3.33% to 7.64%. Card rewards rarely make up that gap.
Why do small coins cost so much more per ounce?
Striking, packing, checking and posting a 1/10 oz coin costs about the same as a 1 oz coin, but the coin holds a tenth of the gold. So the fixed costs make up a far larger share of its price.
| Size | SD Bullion price | Per oz of gold | Premium | APMEX premium |
|---|---|---|---|---|
| 1 oz | US$4,335.39 | US$4,335.39 | 3.33% | 5.45% |
| 1/2 oz | US$2,152.69 | US$4,305.38 | 2.62% | 9.29% |
| 1/4 oz | US$1,156.48 | US$4,625.92 | 10.26% | 13.58% |
| 1/10 oz | US$492.03 | US$4,920.30 | 17.27% | 21.54% |
GoldVetted automated price check, 11 October 2026, random-year coins, single coin, check or wire. Details on our 1/10 oz Eagle page.
Buying one ounce as ten 1/10 oz coins would have cost US$584.91 more than one 1 oz coin at SD Bullion. The same pattern shows up in the UK: on 11 October 2026 the Royal Mint charged 17.75% over spot for a 1/4oz Tudor Beasts Panther, against 8.82% for the 1oz version. The Sovereign is an exception worth knowing about. At 0.2354 oz it is small, yet the cheapest Sovereign in our UK check (2.81%, Hatton Garden Metals) cost about the same premium as the cheapest 1oz Britannia (2.80%), because so many are traded.
Small pieces are still useful if you want to sell in small amounts later. That trade-off is covered in gold coins vs gold bars.
What do you lose when you sell? Buyback and the round trip
The premium is only half the cost. When you sell, dealers usually pay below spot. The gap between a dealer's selling and buying price is called the spread. Your real cost of owning gold is the premium you pay plus the discount you accept when you sell.
| Coin | You buy at | Dealer buys back at | Buyback vs spot | Round-trip loss |
|---|---|---|---|---|
| 1oz Britannia (bought at HGM) | £3,281.19 | £3,067.15 | -3.3% | £214.04 (6.52%) |
| 1oz Britannia (bought at Chards, sold to HGM) | £3,259.95 | £3,067.15 | -3.3% | £192.80 (5.91%) |
| Gold Sovereign (bought at HGM) | £767.48 | £720.90 | -3.4% | £46.58 (6.07%) |
GoldVetted price check, 10 October 2026. Round-trip loss is shown as a share of the price paid. Delivery costs are not included.
So a buyer at Hatton Garden Metals needed gold to rise by about 7% before they could sell at a profit. That is why the lowest buying premium is not the whole story: a dealer that charges slightly more but buys back closer to spot can work out cheaper over the full trip. Read gold dealer spreads for more examples, and how to sell gold when the time comes.
Hatton Garden Metals publishes its buyback prices alongside its selling prices on each product page, which makes the round trip easy to check before you buy. See Hatton Garden Metals' prices
What mistakes do people make with premiums?
- Comparing prices, not premiums. A £770 Sovereign and a £3,260 Britannia cannot be compared by price. Convert both to a premium.
- Using total weight instead of fine gold. An American Eagle weighs 33.93 g but holds 31.10 g of pure gold. Use the pure gold figure, or you will understate the premium.
- Using a stale spot price. Spot moves every few seconds on weekdays. Take spot at the same moment as the quote.
- Ignoring delivery and minimum orders. A low premium with a large shipping charge on a small order can cost more than a slightly higher premium with free delivery.
- Believing "low premium" collectables. Sellers of proof or "semi-numismatic" coins sometimes avoid talking about premiums at all. The CFTC calls "semi-numismatic" a made-up industry term with no special meaning.
- Forgetting tax. Some US states charge sales tax on bullion, and Canada and Australia charge GST on gold below 99.5% purity, which adds to the effective premium.
How can you pay a lower premium?
Choose common 1 oz bullion
Plain bars and widely traded coins (Britannia, Eagle, Maple Leaf, Kangaroo, Krugerrand) carried the lowest premiums in our data. See best gold coins for beginners.
Accept any year
"Best value", "random year" or "mixed years" listings were the cheapest option in every country we checked.
Pay by bank transfer
This saved about 4 percentage points at the US and Canadian dealers we priced.
Compare at least three dealers on the same day
Premiums for the same coin differed by more than 4 points within the UK. Our premium tracker gives a monthly starting point.
Check the buyback before you buy
Ask what the dealer would pay you today. The total of premium plus buyback discount is your true cost.
Avoid buying in a panic
Premiums widen when everyone is buying at once, as in 2020.
For the full process, from choosing a product to storing it, read how to buy gold. Spot right now is ... per ounce, or ... (Loading). That is the gold value only; add a premium from the tables above to estimate a real price.
Compare Chards' Britannia price
Frequently asked questions
What is a good premium on a 1 oz gold coin?
In our October 2026 checks, the cheapest popular 1 oz coins and bars cost 1.68% to 3.33% over spot when paid by bank transfer, depending on the country. Anything under about 4% on a common 1 oz coin was competitive at that time. The same coins cost 7% to 10% at some sellers, so it pays to compare.
How do I calculate the premium on gold?
Divide the price by the value of the pure gold inside, then subtract 1. The value of the gold is the fine gold weight in troy ounces multiplied by the spot price. Example: £3,259.95 ÷ (1 × £3,171.03) - 1 = 2.80%. The premium calculator does the sum with live spot.
Why are small gold coins so expensive per ounce?
Each coin costs roughly the same to strike, pack, check and post, whatever its size, so those fixed costs are a bigger share of a small coin's price. On 11 October 2026 a 1/10 oz American Eagle cost 17.27% over spot at SD Bullion, against 3.33% for the 1 oz coin.
Is it cheaper to pay for gold by bank transfer?
Usually, yes. Card payments cost dealers a processing fee, and many pass it on. In our October 2026 checks, paying by card added 3.81 to 4.39 percentage points at four US and Canadian dealers. On a US$4,300 coin that was about US$180 to US$185 extra.
Do I get the premium back when I sell?
Mostly not. Dealers usually buy back at or below spot. Hatton Garden Metals offered £3,067.15 for a 1oz Britannia in our 10 October 2026 check, 3.3% below spot. Buying and selling there at the same time would have lost 6.52%, so gold must rise that much before you break even.
Why do gold premiums go up during a crisis?
Mints and refiners cannot raise output quickly, so when many people rush to buy, dealers run short and raise premiums. In July 2020 Bloomberg reported the US Mint had cut coin supplies to its distributors during the pandemic, and that some premiums had reached record levels.
Can I buy gold below spot?
Not from a genuine dealer selling new stock. Spot is a wholesale price for large bars. The US Mint says any offer of a bullion coin below the market price deserves extra scrutiny. Very cheap offers often turn out to be fakes or scams. See gold scams.
Sources
We checked these primary and official sources when writing and fact-checking this page.
- US Mint: Bullion consumer awareness (understand market premiums; scrutiny for below-market offers)
- CFTC: 10 things to ask before buying physical metals (dealer spread, markup or premium, buy-back price)
- LBMA: precious metal prices and the LBMA Gold Price benchmark
- gold-api.com: spot price feed used for every premium (XAU in USD, GBP, CAD, AUD)
- Hatton Garden Metals: 1oz Gold Britannia, sell and buyback prices (priced 10 Oct 2026)
- Chards: 1oz Gold Britannia, Minty (priced 10 Oct 2026)
- SD Bullion: 1 oz American Gold Eagle, wire and card prices (priced 10 Oct 2026)
- APMEX: 1 oz American Gold Eagle, wire and card prices (priced 10 Oct 2026)
- Bloomberg via Mining Weekly: US Mint has reduced silver, gold coin supplies to purchasers (28 July 2020)
Not financial advice. GoldVetted provides general information to help you compare options. It is not personal financial, tax or legal advice. Gold prices go down as well as up, and you may get back less than you pay. Check tax rules with the official source or a qualified adviser before you act.