Investors who buy gold bullion pay what is called the “premium” in addition to the market price of the metal. This premium represents the cost of fabricating the item, shipping costs, the wholesale premiums the dealer may have paid to acquire the item and the dealer’s profit.

There are premiums associated with both coins and bars, but it will vary from item to item depending upon size and type. For example, coins tend to carry higher premiums than bars. Order quantity is another variable. As a rule, larger order quantities mean lower premiums.



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