Gold & Silver FAQ

The spot price is the current wholesale benchmark for raw metal on global commodity exchanges like COMEX and the London Bullion Market. It changes throughout the trading day based on futures contracts, currency movements, and global supply and demand. The spot price is your starting point for evaluating any purchase — but it’s not the price you’ll pay. Every dealer charges a premium above spot. Understanding that premium is the key to knowing whether you’re getting a fair deal.

The premium is the amount a dealer charges above the spot price. It covers manufacturing, refining, minting, shipping, insurance, and the dealer’s margin. Fair premiums vary by product type. Generic bullion bars and rounds typically carry premiums of 3–6% over spot for gold. Government-minted coins like American Eagles run higher — roughly 5–8% in normal market conditions. Silver premiums run higher as a percentage than gold because the per-ounce price is lower and fixed costs make up a larger share. These ranges shift with market conditions, and knowing the typical range for what you’re buying is the single best protection against overpaying.

Bullion is valued primarily by its metal content and weight — a 1 oz gold bar is worth roughly 1 oz of gold plus a modest premium. Numismatic coins are valued for rarity, condition, historical significance, and collector demand, often well above their metal value. A rare date Morgan Silver Dollar might sell for hundreds of times the value of its silver content. If your goal is to own metal, buy bullion. If you’re a collector who understands grading and mintage numbers, numismatic premiums can be justified — but understand that you’re paying for the coin, not just the metal inside it.

Either can work well. Local coin shops offer hands-on inspection — especially important for numismatic coins — plus immediate possession with no shipping risk. Online dealers typically offer wider selection and posted premiums that are easy to compare across multiple sites. The channel matters less than the premium you’re paying. A local dealer at 3% over spot is a better deal than an online dealer at 5% over spot, and vice versa. Compare at least three dealers regardless of channel.

Gold bars — especially generic or private-mint bars — typically carry lower premiums than coins because they’re cheaper to produce. Government-minted coins like Eagles, Maple Leafs, and Krugerrands carry higher premiums but are more universally recognized and generally easier to sell. There’s also a size tradeoff: larger bars have lower per-ounce premiums, but they’re less divisible. You can’t sell half a 10 oz bar. Many buyers hold a mix of coins and bars to balance cost efficiency with flexibility.

They serve different purposes. Gold stores more value in less space and weight — an ounce of gold is worth roughly 90–100 ounces of silver, making it far easier to store, transport, and liquidate in large amounts. Silver is more affordable per ounce, making it accessible for smaller budgets, but it requires significantly more storage space for equivalent value. Many buyers hold both. The gold-to-silver ratio — which tells you how many ounces of silver it takes to buy one ounce of gold at current prices — is one metric some buyers use to decide which metal is relatively cheaper at any given time. You can see the live ratio on our homepage ticker.

Look for a verifiable physical address — not a P.O. box. Check their Better Business Bureau rating and Google reviews, paying attention to the actual content of the reviews, not just the star count. See how long they’ve been in business. Transparent posted pricing is a good sign — if everything is “call for a quote,” that’s a negotiation setup. Avoid dealers who cold-call you, use extreme urgency tactics, or try to steer you away from the product you asked about into higher-margin items.

Most experienced buyers suggest starting with widely recognized government-minted bullion — American Gold Eagles, Silver Eagles, or Canadian Maple Leafs. These carry moderate premiums, are universally recognized by dealers worldwide, and are easy to sell anywhere. They’re a straightforward entry point while you learn how the market works. Avoid numismatic or collectible coins until you have a solid understanding of premiums, grading, and how the secondary market for rare coins operates.

“Junk silver” refers to pre-1965 U.S. coins — dimes, quarters, and half dollars — that contain 90% silver. The term “junk” doesn’t mean they’re worthless. It means they have no significant numismatic or collectible value — they’re bought and sold purely for their silver content. A $1 face value bag of pre-1965 quarters contains approximately 0.715 troy ounces of pure silver. Junk silver is popular because it comes in small, divisible denominations, is widely recognized, and has a fixed supply that makes it genuinely scarce during high-demand periods.

Most online dealers charge a 2–4% surcharge for credit card purchases versus wire transfer or ACH payment. On a $3,000 purchase, that’s $60–120 in additional cost. Bank transfers save money but take longer to process and don’t offer the purchase protection that comes with a credit card. Some buyers accept the surcharge for the convenience and rewards points. There’s no wrong answer, but you should factor the payment method into your total cost comparison.

You have two main options. Sell to a local dealer for immediate cash — walk in, get a quote, walk out with payment. Or sell to an online dealer — ship your metals, receive payment after they verify the product. Local is faster and simpler. Online may offer slightly better prices on larger quantities because high-volume online buyers operate on thinner margins. In either case, check the spot price before you go, and get quotes from at least two or three buyers before committing.

Dealers typically buy at or slightly below the current spot price for commodity bullion, and at a small premium below spot for highly recognizable products like American Gold Eagles and Maple Leafs. The gap between what you paid when you bought (premium above spot) and what you receive when you sell (at or near spot) is the round-trip cost of ownership. This spread varies by product and by dealer. Always ask about buyback pricing before you make a purchase.

Start by identifying what you have. Government-minted bullion coins — Eagles, Maple Leafs, Krugerrands — are straightforward. Their value is primarily their metal content, and any reputable dealer can quote you a price. Numismatic or collectible coins are more complex. Their value may be significantly above metal content based on rarity, condition, and collector demand. For bullion, get quotes from multiple local and online dealers. For potentially valuable collectible coins, consider a professional appraisal from a PCGS or NGC authorized dealer before selling.

That’s a personal financial decision that depends on your goals, and we can’t advise on it. What we can tell you is that if you do decide to sell, the same principles apply as when buying: know the spot price, compare offers from at least two or three dealers, and understand that premiums and buyback spreads vary. Selling in a panic — whether driven by fear the price will drop or excitement that it’s risen — is rarely optimal. A calm, informed seller who compares offers will almost always get a better result than one who accepts the first quote.

The spot price is a wholesale benchmark for raw, unformed metal on commodity exchanges. Turning that raw metal into a finished coin or bar requires mining, refining, minting, quality assurance, packaging, shipping, insuring, and retailing. Every step in that supply chain adds cost. The premium above spot covers those production and distribution costs plus the dealer’s operating margin. Premiums are a normal and unavoidable part of buying physical precious metals — the question isn’t whether you’ll pay one, but whether you’re paying a fair one.

It depends on the product. Generic gold rounds from private mints typically carry premiums of 3–6% over spot. American Gold Eagles usually run 5–8% in normal market conditions. Canadian Maple Leafs tend to fall in the 4–7% range. Specialty, proof, or limited-mintage coins carry premiums that vary widely based on collector demand and available supply. These ranges are not fixed — they shift with market conditions. Premiums tend to rise during periods of high public demand and compress during quieter markets.

Silver premiums run higher as a percentage than gold premiums. This is because the per-ounce price of silver is much lower, so fixed costs — minting, shipping, handling — represent a larger share of the total price. Generic silver rounds typically carry premiums of 8–15% over spot. American Silver Eagles can run 15–30% or more depending on market conditions and U.S. Mint supply constraints. Larger silver bars — 10 oz, 100 oz — carry lower percentage premiums and are the most cost-effective way to accumulate silver by weight.

Premiums spike when physical demand outpaces the available supply of finished products. This typically happens during financial crises, geopolitical shocks, or sudden surges in retail buying. The spot price — which reflects futures contracts — may not move much, but the cost of an actual coin or bar can jump significantly because mints, refiners, and dealers simply can’t produce and ship fast enough to meet demand. Premiums generally compress back to normal ranges once demand stabilizes, but that can take weeks or months.

The gold-to-silver ratio tells you how many ounces of silver it takes to buy one ounce of gold at current prices. If gold is $3,000/oz and silver is $30/oz, the ratio is 100:1. The historical average over the past several decades has generally ranged between 50:1 and 80:1, though it has spiked above 100:1 during periods of financial stress. Some buyers use this ratio as a signal — a historically high ratio (meaning silver is cheap relative to gold) might favor silver purchases, and vice versa. The ratio is not a prediction tool, but it provides context. You can see the live gold-to-silver ratio on our homepage ticker.

Gold jewelry value for resale is based on its metal content — weight multiplied by purity — not what you paid at a jewelry store. Check the karat stamp on the piece: 10K is 41.7% pure gold, 14K is 58.3%, 18K is 75%, and 24K is 99.9% pure. Weigh the piece in grams, multiply by the purity percentage, then multiply by the current gold price per gram. That calculation gives you the melt value. Most buyers will offer 70–90% of melt value, with the discount covering their assay and refining costs.

Approach with caution. Some cash-for-gold operations offer fair prices. Others offer 50% or less of the actual melt value, relying on the seller not knowing what their gold is worth. Protect yourself: calculate the melt value yourself before walking in (weight × purity × current gold price per gram). Get quotes from at least three buyers, including local coin dealers — many of them buy gold jewelry for melt and may offer better prices than dedicated cash-for-gold shops. Never accept the first offer without comparing.

Sterling silver is 92.5% pure silver. Its melt value depends on weight and the current silver spot price. Because silver is much less valuable per ounce than gold, silver jewelry and flatware have lower melt value than most people expect. A sterling silver fork might contain $15–30 worth of silver at current spot prices. Whether selling is worthwhile depends on the total quantity you have and whether any of the pieces have collectible or antique value beyond their metal content.

Gold-plated items have a microscopically thin layer of gold over a base metal. The actual gold content is negligible, and most dealers won’t buy them for melt. Gold-filled items — often stamped “GF” or marked with a fraction like “1/20 12K GF” — contain more gold than plated items but still far less than solid gold. Some refiners accept gold-filled items in bulk, but individual pieces aren’t typically worth selling for their gold content. If you’re unsure whether a piece is solid gold, plated, or filled, a reputable local jeweler or coin dealer can help you identify it.

If you store precious metals at home, use a quality safe that is both fireproof and securely anchored — bolted to the floor or wall. Keep your holdings private. Discussing what you own, how much you have, or where you store it creates unnecessary risk. Consider splitting your holdings across multiple locations to reduce the impact of any single loss. And check your homeowner’s or renter’s insurance policy carefully — standard policies often have surprisingly low coverage limits for precious metals, sometimes as little as $200. You may need a scheduled rider or separate policy.

Safe deposit boxes offer strong physical security, but they have limitations worth understanding. Their contents are not FDIC insured — if items are lost, damaged, or stolen, the bank’s liability is typically very limited. Access is restricted to bank hours, which means you can’t reach your metals on weekends, holidays, or outside business hours. During banking crises, legal disputes, or certain government actions, access can be frozen. Some buyers use safe deposit boxes for a portion of their holdings while keeping some accessible at home.

Gold IRAs exist and are legal, but the industry around them is one of the most aggressively marketed and fee-heavy corners of the precious metals world. Setup fees, annual custodian fees, storage fees, and transaction fees can significantly erode returns over time. Many gold IRA companies spend heavily on advertising — celebrity endorsements, free gold promotions, fear-based marketing — and those costs are ultimately passed on to the customer through higher premiums and fees. If you’re considering a gold IRA, research the full fee structure thoroughly and compare the total cost to simply buying physical gold yourself and storing it independently. Consult a fee-only financial advisor who doesn’t earn a commission from the sale.

The most common red flags: unsolicited phone calls pushing precious metals, extreme urgency or “limited time” pricing, steering from the bullion you asked about into high-premium numismatic coins, promises of guaranteed returns, refusal to post prices publicly (everything is “call for a quote”), and businesses with no verifiable physical address. Legitimate precious metals transactions are not high-pressure events. If something feels like a hard sell, it probably is. Trust that instinct. The FTC’s consumer guidance on investment scams (consumer.ftc.gov) and the CFTC’s precious metals advisory (cftc.gov) are both worth reading before making any purchase.

Some are. Many operate in a gray area where aggressive marketing and high fees border on predatory, even if they’re technically legal. The gold IRA space has attracted companies that spend enormous sums on advertising — television commercials, celebrity spokespeople, “free gold” promotions — which should raise the question of where that marketing budget comes from. Watch for opaque or layered fee structures, pressure to roll over retirement accounts quickly, and claims about gold being “confiscation-proof” or “IRA-approved” that are either misleading or meaningless. Research independently, and consult a fee-only financial advisor. The CFTC warns that gold is not a guaranteed safe investment at cftc.gov/LearnAndProtect.

Not always, but the business model is built on information asymmetry — the buyer knows the melt value of your gold, and most sellers don’t. That imbalance creates opportunities for lowball offers. Protect yourself by calculating the melt value before you walk in (weight × purity × current gold price per gram). Get quotes from at least three buyers. Be willing to leave if the offer isn’t close to what your calculation says the metal is worth. The best defense is simply knowing what your gold is worth before anyone makes you an offer.

“Confiscation-proof” is a marketing term frequently used by gold IRA companies and high-premium coin dealers to justify steering buyers toward expensive numismatic coins. The claim is usually that collectible coins were exempt from Executive Order 6102 in 1933, when the U.S. government required citizens to turn in gold holdings. While there was a narrow exemption for coins with recognized collector value in 1933, the circumstances of that era — the gold standard, fixed gold prices, a specific economic emergency — bear no resemblance to today’s monetary system. No modern U.S. law or executive order has suggested gold confiscation, and no serious analysis treats it as a realistic near-term scenario. When a dealer uses confiscation fears to sell you a high-premium product, they’re selling fear, not protection.