When buying gold bars, they are higher than the spot price of gold. This additional cost is called a premium, and understanding how it’s calculated can help you make smarter investment decisions.

Factors influencing premiums include:

• Manufacturing costs: Refining gold to high purity and molding it into bars adds to the cost.
• Brand reputation: Premiums tend to be higher for well-known brands like PAMP or Perth Mint due to their global recognition.
• Bar size: Smaller bars often have higher premiums per ounce since they cost more to produce relative to their size.
• Market demand: When demand for physical gold rises, premiums increase accordingly.

Understanding these factors helps you assess whether your premium is reasonable and aligns with your investment goals.

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