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Why do Smaller Rounds and Bars Cost More Per Ounce Than Larger Rounds and Bars? 

When you buy larger rounds and bars, you pay less per ounce than you do when you buy smaller bars and rounds.  

The price of precious metals products is determined by more than just the weight of the metal. The expenses the manufacturer and dealer incur in mining, minting, and storing the metal are factored into the price.  

If you compare smaller bars, like one-ounce bars, with ten-ounce bars, the higher cost per unit of the smaller bar represents a higher premium. This higher premium represents a fixed cost to produce a round or bar, regardless of the size of the product.   

Since this is a fixed cost, the premium per unit is lower for rounds and bars with more units. 

What Determines the Premium of a Precious Metals Product? 

When you buy a gold or silver product, you pay more than the current spot price for the metal.  

The cost of a precious metal product depends on factors like the spot price, market demand, the amount of precious metal in the product, and the product’s production cost. We refer to the amount over the live spot price of gold or silver as the premium.  

The premium reflects production costs and the demand for an item.   

The production cost represents mining, refining, minting, transporting, and storing a product before it is sold and shipped. Unique bars and rounds, or those requiring special dies, may carry a higher premium since the production workflow represents high production efforts.  

Bars and rounds with a higher quantity of precious metal are less expensive per ounce because their production costs are proportionately lower than smaller bars and rounds.  

In addition to production costs, demand can also drive the premium. With increased demand comes increased scarcity, which is one of the driving forces of the expenses for precious metals. 

Other Factors That Impact the Premium of a Precious Metal Product 

Smaller bars are often more popular for buying than larger bars, which adds gravity to the premium of smaller products.   

Another factor that can impact the premium on a precious metals product is the bar’s or round’s manufacturer.   

Bars and rounds produced by well-known manufacturers are often in greater demand than those not, and some buyers may consider these well-known products to be higher quality. While they may have the same amount of precious metals with the same level of fineness, their demand results in greater scarcity, which can also impact the premium. 

Quick Guides to Investing

Step 1:

Why Buy Physical Gold and Silver?

If you are concerned about the volatility of the stock market, you’re not alone. The extreme highs and lows of the stock market often lead investors towards safe-haven assets, like bullion. Historically, the Precious Metals market has an inverse relationship with the stock market, meaning that when stocks are up, bullion is down and vice versa.

Step 2:

How Much Gold and Silver Should You Have?

This question is one of the most important for investors to answer. After all, experts suggest limits on how much of any types of investments should go into a portfolio. After deciding to purchase and own Precious Metals and considering how much money to allocate, one can then think about how much and what to buy at any point in time.

Step 3:

Which Precious Metals Should I Buy?

With the frequent changes in the market and countless Precious Metal products available, choosing investments can be difficult. Some want Gold or Silver coins, rounds or bars while others want products that are valuable because of their design, mintage or other collectible qualities. Also, collectors may shop for unique sets and individual pieces for their collections.

Step 4:

When to Buy Gold & Silver

After considering why, how much, and what Precious Metals products to buy, an investor’s next step is when to buy them. This decision requires an understanding of market trends and the impact of economic factors on precious metal prices.

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