What you should know about BUYING or SELLING Gold Bullion:
Vermillion Enterprises wants to help you understand the ins and outs of buying and selling Gold bullion. If you have any further questions, please use the text to chat feature in the lower right, Call Us, or Stop By Today!Call Us
What is Gold Bullion?
Bullion is refined gold, in a high purity state, generally in the form of minted coins and various sizes of bars.
Taking Home the Gold – What is it worth?
The value is primarily based on weight, the same as other commodities like crude oil and natural gas. It reflects what a precious metal is selling on the stock exchange for. This market index price is called the spot price. It can fluctuate several times a day! However, it is the most current price available for any specific type of metal.
The spot price is reported in Troy ounces. However, gold bullion, can also be sold based on the melt price. A melt price is determined by the amount of precious metals in a coin or round.
The spot price is most commonly used to determine value of items that weigh one-ounce – whether it be a coin or bar, there is an identical value for both. Meaning the spot price and melt price are essentially the same on a one-ounce coin or bar.
However, if you have a coin with .5 ounces gold in it, then it would be based off the melt price, as it weighs less than the spot price indexing. Examples include: ½ ounce American Gold Eagles, ¼ ounce American Gold Eagles, and 1/10th ounce American Gold Eagles.
Okay, so what are premiums?
Premiums are essentially little price bumps for rare, or considered more valuable items. A coin premium is the additional cost of a bullion coin above and beyond the market value of the precious metal commodity it contains.
However, a certified rare coin in near mint condition can have a sizable premium over spot. Also, to note, unusual demand for a specific coin type can drive its premium level significantly higher.
How are the Spot & Melt Purchase Prices Calculated?
If you are interested in buying the 1 oz. American Gold Eagles – Brilliant Uncirculated listed on our Online Shop.
We currently are using Kitco Bid Price as our price for gold, silver, platinum, and other precious metals.
Call or stop by today for the most accurate spot price. The following formula would be used to calculate what you would pay for the 1 oz. American Gold Eagle:
(Current Spot Price + Premium) x Weight = Spot Purchase Price
Now, let’s say you are interested in the 1/2 oz. American Gold Eagles – Brilliant Uncirculated instead?
(Current Spot Price x Weight) + Premium = Melt Purchase Price
Well, wait a minute! You added the premium to the spot price before multiplying it by the weight and then switched gears on the melt price.
Yes, yes I did! That is because the premium is in addition to the spot price, as long as it is over one-ounce.
Yet, with the over melt price, the premium is in addition to the spot price based on the weight less than one-ounce. A little confusing, I know.
But once you start buying or selling gold bullion, you’ll catch on quick – I promise!
Why should you consider buying or selling gold bullion/coins at Vermillion Enterprises?
Simply put, Vermillion Enterprises has, for over 6 years, built a reputation on fair prices, honest trade practices, and great customer service. We believe this combination has provided us an edge over the competition and look forward to serving all of your gold bullion needs! Whether you are buying or selling gold bullion.
So if you live in or near Spring Hill FL, Lutz FL, New Port Richey FL, Hudson FL, Crystal River FL, Inverness FL, Brooksville FL or surrounding counties – Pinellas, Hillsborough, Citrus, stop in and say hi! Come on in or check out our online SHOP! We want to buy gold bullion from you AND we have plenty of gold bullion sell to you!