Gold and Silver Prices
Precious metals consist of various products and sharply different pricing schemes. Gold and silver prices are derived from the spot price and determine how much we must pay a bullion dealer for gold and silver coins and bars. The variety of products offered in the bullion industry means that dealer premiums vary depending on the nature of the product.
The factors that influence what we pay for physical bullion can be broken down into the following three important items:
- The type of bullion (gold vs. silver)
- The condition of the bullion (uncirculated Silver Eagle coins vs. a bag of junk silver)
- The scarcity of the bullion (rare collectible coins vs. recent mints)
Gold is much more scarce than silver and therefore demands much higher prices per ounce. Dealer premiums are much higher on uncirculated coins in high demand than old coins that have seen the wear-and-tear of being ported in pants pockets and pocketbooks for years on end. Pre-1933 coins tend to demand a much higher premium than a 2011 release due to their scarcity and value as collectibles
