What are “premiums”?
A premium is the amount of money over the spot price that covers other costs related to the product. The premium can include manufacturing and shipping costs, wholesale and retail markups, and other costs associated with the production of the product. Each product has its own premium, as each product goes through a different process. Higher demand for a specific product can also lead to a higher premium. For example, the 1 oz American Gold Buffalo has a higher premium than the 1 oz Australian Gold Kangaroo, even though each coin has the same weight of gold.