During “normal” times, bullion coins and bullion bars sell at low premiums over spot. These premiums reflect the cost of refinery, minting, assaying, storage, insurance, distribution and similar production costs as well as a dealer markup that covers the bullion dealerships cost of operation and profit. If there are any taxes due on your purchase or if bullion is not bought locally over the counter, any taxes, shipping cost and insurance will be added. Barring any market irregularities, markups of 4% to 12% are the most common, and it is usually recommended to look for dealers that do not significantly exceed a premium of 8% over current spot price. If there is any significant uncertainty going on (like the Greek situation in 2011), street prices may very easily increase to 20% or even explode to 50% or more over spot. It is, therefore, good advice to buy the dips and load up on physical bullion during quiet times at the usual premiums and/or when the overall market takes a breath.

Tax considerations (see Do I Have to Pay Sales Tax… section, above) may influence your individual buying decision though, depending on actual total cost to you. Find out the total to be paid including premium, any taxes and shipping cost.

How Do I Buy and Sell Physical Gold and Silver?
Do I Have to Pay Sales Tax (or VAT or Similar) on Precious Metals?
Should I store my precious metals locally or overseas?
How Much Should I Pay for Physical Bullion?
Can I Earn a Higher Profit With Numismatic Coins?
Should I Buy Bullion Bars or Bullion Coins?
Should I Buy Bullion Online?
Should I Buy Bullion Over the Phone?
Should I Buy Bullion Using eBay or Amazon Marketplace?
Is Confiscation of Gold a Real Risk?
Are There Any Reporting Requirements for Gold or Silver?
Should I Buy Vaulted Allocated Gold or Silver?