A premium is the amount you pay above the spot price for a physical silver or gold coin, round, or bar. Spot price is the raw market price for the metal itself. The premium is everything on top of that.
If silver spot is $30 per troy oz and you buy a Silver Eagle for $37, you paid a $7 premium, or about 23% over spot.
Physical metal costs more than spot price because someone has to mine it, refine it, mint it into a coin or bar, package it, insure it, ship it, and store it before it reaches you. Every step in that chain adds cost, and that cost gets passed along as a premium.
On top of production costs, dealers also build in their own margin. Supply and demand plays a role too. When silver demand spikes (as it did in early 2021), premiums can balloon well beyond normal levels because dealers run low on inventory and can charge more. When demand is soft, premiums compress.
Not all silver carries the same premium. Generic rounds and bars tend to carry the lowest premiums because they're simple to produce and there's no brand value attached. Government-minted coins like American Silver Eagles and Canadian Maple Leafs carry higher premiums because of their legal tender status, wider recognition, and higher production costs.
90% junk silver (pre-1965 US coins) has its own premium structure based on face value and silver content. Proof coins, limited editions, and numismatic pieces can carry premiums far above the metal value.
That depends on the market, the product, and what you're willing to pay. Premiums fluctuate constantly based on supply, demand, and dealer inventory levels. Rather than give you a fixed number, the Stack Heavy premium tracker shows you what dealers are actually charging right now averaged across multiple sources, so you can see where today's premiums land relative to historical norms and make your own call.
It is possible to buy silver below spot price, but it's rare and usually limited to specific situations. Secondary market sales between private parties, certain bulk lots, or damaged/damaged-packaging items can sometimes trade at a discount. In practice, most retail purchases carry a premium. If someone is offering silver at a significant discount to spot with no clear explanation, be skeptical.
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