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The spot price of gold, silver, and platinum is a hypothetical number that trades on paper. The main precious metals markets are in New York, London, and Asia. Of course, there are many exchanges all over the world. Normally in the United States, the New York spot price is used for current product pricing.
There is normally not a “best” product to purchase. Most of the time investors and collectors have a personal preference as to what product they like to buy. When asked, “What is the best product to buy?”, my answer usually discusses the premium of the product and how liquid the product is.
The premium is the price of a specific product over the spot price of the metal that the product is made of. Every product carries a different premium. Premiums usually include the cost of the minting, transportation, insurance, postage and commission. Always remember, inside the premium can be allot of hidden charges. At Gulfcoast Coin & Jewelry we tell you what the premium is to us. It is a segregated line-item figure that we discuss with you. Normally the premium is what our cost is, or our replacement cost. .
The commission is what the dealer is making, what the profit is.
A . Gulfcoast tells you what spot pricing we are using at the moment you want to execute your trade. You will know straight up what spot price we are using!
B. What is the premium of the product you are buying? We pay thousands of dollars a month to canvas the biggest precious metals dealers in the country. We find you the best deal, meaning the product you want with the lowest premium. Premiums are always changing! Sometimes daily! Supply and demand dictate the premium. Since the beginning of 2021 to date, the demand for gold and silver has increased dramatically! Therefore, the products are in short supply. Thus, the premiums have gone up. In some cases, premiums have tripled while deliveries have slowed down. Some precious metals product deliveries were backed up over a month. Gulfcoast will discuss all aspects of the trade with you.
C. Gulfcoast Coin & Jewelry’s commission is $0.50 per ounce for units of silver products and 1% for units of gold products. A Unit of silver 100 oz. and a unit of gold is 5 oz. Of course, we sell small quantities for a slightly higher fee. Yes, we have large purchase discounts.