How to Calculate Premiums: Buy Bullion With Confidence

What Is a Premium?

A premium is an extra cost that bullion dealers add to cover the production and distribution expenses of a product. This premium is the amount above the intrinsic value of the precious metal.

Intrinsic - For those unfamiliar with the term 'intrinsic' in precious metals refers to the value of a coin or bar.

Why Are Premiums Listed as a Percentage or a Fixed Monetary Value?

It's also important for us to establish that premiums on bullion products can be set as either 'percentage premiums' or 'monetary premiums'.

Most mints and dealers price gold as percentage premiums as it makes price comparison easier for investors. But for "new" silver it's subject to VAT, so mints and producers charge in monetary premiums (£, $, or €) per ounce or per item. However, the only circumstance this would differ for silver is for pre-owned silver sold on our 'Special Scheme'. This makes it easy for us to price as percentage premium, and simple for all to understand.

Alternative Definitions of Premiums

• Investopedia's Definition

'The cost to buy an insurance policy or an option, bond, or other security that trades above its issuance price or intrinsic value'. (See Source)

• Cambridge Dictionary's Definition

'An amount of money paid at regular times to insure (protect against risk) your health or life, or your home or possessions'. (See Source)

How To Calculate a Premium?

A premium is the percentage over the intrinsic metal value of the gold or other metal type that is charged by the dealer. For example: 

The gold price is £2400 per troy ounce. 

A one ounce coin is currently selling at £2460. 

This means the premium over gold is 1.23% (2460/2000=1.23). 

At Chards, we understand the importance of making our premiums transparent. You can find them on any of the products we sell on our website. Why? So, you can compare easily and quickly.

Why Do Premiums Change?

Like any industry there is a multitude of factors which a bullion dealer may raise or decrease premiums on bullion products. Some of the possible reasons are:

• Lack of supply
• Increased demand/decreased demand
• Competition
• Stock levels

Premiums on Our Best-Selling Bullion

Below displays a selection of our best-selling bullion options, highlighting the premiums and quantity breaks for each product. Quantity breaks refer to the pricing structure where purchasing larger quantities results in lower premiums per item. This means that by buying more, you can benefit from reduced premiums, allowing you to save more on your investment.

2026 Gold Britannia 1 oz Bullion Coin In Stock Quantity Price Per Item Total Total 1 £3,468.97 £3,468.97 £3,468.97 Price Per Item: £3,468.97 Est UK Delivery £8.00 2 £3,468.30 £6,936.60 £6,936.60 Price Per Item: £3,468.30 Est UK Delivery £10.00 5 £3,464.94 £17,324.70 £17,324.70 Price Per Item: £3,464.94 Est UK Delivery £17.00 10 £3,461.59 £34,615.90 £34,615.90 Price Per Item: £3,461.59 Est UK Delivery £29.00 20 £3,458.90 £69,178.00 £69,178.00 Price Per Item: £3,458.90 Est UK Delivery £52.00 30 £3,457.22 £103,716.60 £103,716.60 Price Per Item: £3,457.22 Est UK Delivery £75.00 50 £3,453.87 £172,693.50 £172,693.50 Price Per Item: £3,453.87 Est UK Delivery £126.00 100 £3,447.16 £344,716.00 £344,716.00 Price Per Item: £3,447.16 Est UK Delivery £255.60 200 £3,445.48 £689,096.00 £689,096.00 Price Per Item: £3,445.48 Est UK Delivery £485.60 500+ £3,438.77 £1,719,385.00 £1,719,385.00 Price Per Item: £3,438.77 Est UK Delivery £1,187.20 View Product

2025 Gold Sovereign Bullion Coin In Stock Quantity Premium % Price Per Item Total Total 1+ 7 £845.02 £845.02 £845.02 Price Per Item: £845.02 Est UK Delivery £6.00 View Product

2026 Silver Britannia 1 oz Bullion Coin In Stock Quantity Price Per Item (Exc. VAT) Price Per Item (Inc. VAT) Total (Inc. VAT) Total 1 £62.40 £74.88 £74.88 £74.88 Price Per Item: £62.40 (Exc. VAT) £74.88 (Inc. VAT) Est UK Delivery £6.00 5 £62.35 £74.82 £374.10 £374.10 Price Per Item: £62.35 (Exc. VAT) £74.82 (Inc. VAT) Est UK Delivery £6.00 10 £62.30 £74.76 £747.60 £747.60 Price Per Item: £62.30 (Exc. VAT) £74.76 (Inc. VAT) Est UK Delivery £6.00 25 £62.00 £74.40 £1,860.00 £1,860.00 Price Per Item: £62.00 (Exc. VAT) £74.40 (Inc. VAT) Est UK Delivery £7.00 50 £61.95 £74.34 £3,717.00 £3,717.00 Price Per Item: £61.95 (Exc. VAT) £74.34 (Inc. VAT) Est UK Delivery £13.00 100 £61.60 £73.92 £7,392.00 £7,392.00 Price Per Item: £61.60 (Exc. VAT) £73.92 (Inc. VAT) Est UK Delivery £30.60 250 £61.55 £73.86 £18,465.00 £18,465.00 Price Per Item: £61.55 (Exc. VAT) £73.86 (Inc. VAT) Est UK Delivery £38.60 500 £57.90 £69.48 £34,740.00 £34,740.00 Price Per Item: £57.90 (Exc. VAT) £69.48 (Inc. VAT) Est UK Delivery £64.20 1000+ £61.40 £73.68 £73,680.00 £73,680.00 Price Per Item: £61.40 (Exc. VAT) £73.68 (Inc. VAT) Est UK Delivery £131.40 View Product

CGT Exempt 1 oz Platinum Coin Best Value New Out Of Stock Quantity Premium % Price Per Item (Exc. VAT) Price Per Item (Inc. VAT) Total (Inc. VAT) Total 1 8 £1,557.38 £1,868.86 £1,868.86 £1,868.86 Price Per Item: £1,557.38 (Exc. VAT) £1,868.86 (Inc. VAT) Est UK Delivery £7.00 2 7.9 £1,555.94 £1,867.13 £3,734.26 £3,734.26 Price Per Item: £1,555.94 (Exc. VAT) £1,867.13 (Inc. VAT) Est UK Delivery £8.00 5 7.8 £1,554.50 £1,865.40 £9,327.00 £9,327.00 Price Per Item: £1,554.50 (Exc. VAT) £1,865.40 (Inc. VAT) Est UK Delivery £12.00 10 7.7 £1,553.06 £1,863.67 £18,636.70 £18,636.70 Price Per Item: £1,553.06 (Exc. VAT) £1,863.67 (Inc. VAT) Est UK Delivery £18.00 20 7.6 £1,551.61 £1,861.93 £37,238.60 £37,238.60 Price Per Item: £1,551.61 (Exc. VAT) £1,861.93 (Inc. VAT) Est UK Delivery £30.00 50 7.5 £1,550.17 £1,860.20 £93,010.00 £93,010.00 Price Per Item: £1,550.17 (Exc. VAT) £1,860.20 (Inc. VAT) Est UK Delivery £73.00 100+ 7.4 £1,548.73 £1,858.48 £185,848.00 £185,848.00 Price Per Item: £1,548.73 (Exc. VAT) £1,858.48 (Inc. VAT) Est UK Delivery £149.60 View Product

Why Should You Buy With Chards?

We are an award-winning, family-run coin and bullion dealer. Since 1964, we have facilitated the buying and selling of precious metals for our customers, who range from first-time buyers to seasoned investors and collectors.

If you have any further questions, please book an appointment with us or contact us.