Why Consumers Don’t Pay the Spot Price for Gold and Silver
The spot price is often seen as the “true value” of gold or silver – the price you see on financial websites and market trackers. But when you go to purchase bullion, the price is always higher. Why is that?
Let’s break it down.
1. The Spot Price Is for Large-Scale Traders
The spot price reflects bulk transactions between major financial institutions – think banks, funds, and refiners. These trades involve hundreds of kilos at once and skip the costs of retail distribution.
As a private buyer, you’re purchasing smaller units and accessing a very different supply chain.
2. The Premium: What You’re Really Paying For
When you buy bullion, you’re not just paying for raw metal. You’re paying for the entire process that brings it to your hands.
✅ Refining and Minting
Bullion has to be purified, cast, and stamped – sometimes with serial numbers, sometimes in intricate forms. That all costs money.
✅ Packaging and Certification
Bars often come sealed with assay certificates or holograms. Coins are minted with protective cases and official markings.
✅ Shipping and Insurance
Precious metals are high-value goods. They need to be securely transported, tracked, and insured – even more so when going to a private home.
✅ Customer Support and Guarantees
Buying from GemityLab means personal support, verified quality, and return options – services that bulk buyers don’t receive, but consumers expect.
✅ VAT and Regulation
In the EU, silver bullion carries 21% VAT. Gold, if it qualifies as “investment grade,” is VAT-exempt – but that doesn’t eliminate the costs of production and handling.
3. Smaller Units, Higher Costs
Just like buying rice in 1kg bags is more expensive per gram than buying in 50kg sacks, small bullion units cost more per ounce. That 1g bar or 1oz coin may seem small – but its handling cost is disproportionately high.
4. Trust Comes at a Price – and It Should
Especially in today’s world of counterfeits and scams, consumers want certainty. You want to know it’s real, delivered securely, and backed by a business you can trust.
For many of our clients, especially investors and collectors, this trust is worth every cent of the premium.
5. The Spot Price Is a Benchmark – Not a Retail Tag
Think of spot like the factory price of a car. What you actually pay includes delivery, taxes, registration, service, and optional upgrades. It’s the same with bullion: you’re not just buying metal – you’re buying assurance, presentation, and peace of mind.
Final Thoughts
At GemityLab, we believe in transparent pricing. Our goal is to keep premiums fair while offering maximum trust, fast delivery, and high-quality presentation. You’re not just buying a bar or coin – you’re investing in a lasting asset.
And sometimes we wish to give you a little bit extra. We currently offer our Scottsdale Vortex bars for our buying price + VAT. With only a small margin to cover shipping costs. Without the additional service premiums!
Want to know the exact premium or lead time on a specific bar?
Just email us at info@gemitylab.com – we’ll gladly help you compare options or place your order directly. This also applies for wholesale orders which have lower premiums as we can directly order these at the mint for you. Bringing wholesale prices to the consumer.
note: images generated by AI
