Premiums are the markup over the spot price, the underlying price of the metal itself that fluctuates throughout the day as it trades on global markets. We don’t set that price, supply and demand do. Premiums, on the other hand, are made up of manufacturing and wholesaling costs.
And not all products are made equal. The lower the premium on your bullion, the lower your cost basis and more exposure to the metal you get for your dollar.
That’s cost. Now let’s cover why popularity matters, too.
Purchasing popular coins and bars that are widely-held and distributed around the world provide you with liquidity.
Just like stocks, bullion is traded in a market. When it comes time to sell, time to take profits, if you own a collectible, rare, proof, or limited-release bullion it can be much more difficult to match you with a buyer.
It’s easy to remember this way: there is always a market for shares of Microsoft, you can sell them fast and at the price you want.
But when you try to sell a thinly-traded penny stock, your order will wait around for a buyer who may offer 10% or 20% less than you want for your shares.
The same rule applies to bullion. The higher the sales volume a coin or bar has, the more often it trades hands, the better the price tends to be.
So, which products are both popular and low-cost?
Let’s start with the #1 most popular bullion we sell on GoldSilver.com: American Gold Eagle and American Silver Eagle coins.