A lot of people ask, “Can I buy gold at wholesale, or even right at spot?” The simple answer is that you can absolutely buy physical gold as a private individual, but purchasing it at the exact, real time spot price is usually not realistic. Spot is basically the benchmark price used in large, institutional sized trades, not the final price for a finished product that has to be minted, shipped, insured, and handled securely. Once gold is turned into bars or coins that you can actually hold, there are real costs involved, and that’s where the premium comes in.
Think of spot like the raw commodity price. It’s tied to big “good delivery” style transactions in the professional market. When you buy a one ounce bar or a coin, you’re buying a manufactured product with packaging, distribution, and quality assurance behind it. Dealers also have expenses like overhead, inventory risk, storage, insurance, and secure delivery, and they still have to make a profit to stay in business. That’s why the price you pay is typically spot plus a premium, even when you’re getting a fair deal.
The good news is you can still get very close to spot if you know what to look for. The goal isn’t chasing an impossible “spot only” price, it’s finding the lowest reasonable premium for the type of gold that fits your plan. Premiums often vary based on what you’re buying. In many cases, larger bars tend to carry smaller premiums than tiny pieces because the manufacturing cost is spread out, while certain popular coins can carry higher premiums when demand is hot or supply is tight. Timing matters too, because premiums can widen during periods of heavy buying.
If you’re considering physical gold, the smartest approach is to work with someone who can explain the options clearly and help you compare premium levels across different products, sizes, and goals. If you want, call me and we’ll walk through what “spot” really means, what premiums you should expect right now, and which gold or silver choices typically give you the most metal for your dollar. Call Terry Scott (at the number shown in the image above) at American Standard Gold and I’ll get your questions answered and help you map out a simple next step.
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