Field Manual · Educational

What a fair premium over spot looks like

Spot is the price of the metal itself. The premium is everything you pay above that for a finished coin or bar. Understanding what the premium covers is the fastest way to tell a reasonable quote from an expensive one.

What the premium pays for

• Fabrication. Refining to purity, striking or casting, assay and packaging.
• Distribution. Mint to wholesaler to dealer, with insured shipping at each step.
• Dealer margin. The spread the dealer keeps between what they pay and what they charge.
• Demand. When retail buying surges, premiums widen even if spot does not move.

Why premiums differ

• Coins cost more than bars. Sovereign coins such as the American Eagle, Canadian Maple Leaf, or South African Krugerrand carry government backing, legal-tender status, and wide recognition. That recognition makes them easy to resell, and the premium reflects it. Generic bars and rounds from private mints usually carry the lowest premiums.
• Small items cost more per ounce. A 1/10 oz coin costs roughly as much to strike as a 1 oz coin, so its premium as a percentage is far higher. The same holds for 1 oz silver versus 100 oz silver bars.
• Silver premiums are higher than gold premiums. Fabrication cost is similar per piece, but the metal is worth much less, so the premium is a bigger share of the price.
• Collectible and proof versions are a different market. Their price reflects rarity and condition, not just metal content. Compare them to similar collectibles, not to bullion.

How to compare quotes

1. Use the same spot reference and time for every quote. Spot moves all day.
2. Compare the all-in price: item price plus shipping, insurance, and any payment-method surcharge.
3. Ask about the buyback price. A dealer who buys back close to spot is cheaper over the full round trip.
4. Check purity and fine weight. A 1 oz Eagle contains 1 troy oz of gold in a 22-karat alloy; a 1 oz Maple Leaf is .9999 fine. Both hold one ounce of gold.

The premium calculator does the arithmetic against the live board so you can compare quotes on the same footing.

Purity notes

• Gold: .9999 (24k) for most modern bars and Maple Leafs; .9167 (22k) for Eagles and Krugerrands. Fine weight is what matters.
• Silver: .999 or .9999 for bullion; .900 for pre-1965 US coinage (often called "junk silver").
• Platinum and palladium: typically .9995.

Educational only. Battalion AI is an independent project, not affiliated with Battalion Metals or any dealer. Nothing here is financial advice or a recommendation to buy or sell.