Why You’re Overpaying for Silver
You think you’re buying $89 silver… until your card gets nailed for $103+.
That’s not a glitch. That’s how many bullion dealers quietly make their money in this market.
We just mystery‑shopped five large online dealers on one simple product:
2026 1 oz American Silver Eagle, BU (single coin, small-quantity pricing)
Same coin. Same spot price: about $89/oz as of January 13, 2026 (Trading Economics, Money Metals spot feed).
Very different reality at checkout.
The Setup: What We Actually Did
We pulled live quotes from major online dealers on January 13, 2026, with silver spot right around $89 (Trading Economics).
Here’s what they wanted for that same 2026 Silver Eagle (small quantities, typical online pricing):
GovMint: $103.95 by credit card — +16.8% over spot
Big brand, big markup. Many buyers are effectively paying for the name and the ad budget.
Money Metals Exchange: $102.79 by credit card — +15.5%
Not extreme for this environment, but still a chunky premium in a heated market.
JM Bullion: $99.41 by check/wire — +11.7%
Better, but still a double‑digit premium over spot.
LCR Coin: $95.64 by credit card — +7.5%
Leaner margin, more coin for each dollar spent.
Hero Bullion: $94.36 by check/wire — +6.0%
Many stackers view this as a sweet spot: relatively thin margins and a restrained premium.
Translation: more ounces per dollar.
Same coin. Same spot. A roughly $9+ per coin gap between the high‑markup and low‑markup shops—an $180 difference on a single tube of 20 coins.
And that’s before even touching the “collector” stuff.
On the very same day, dealers were asking $133.95–$199.00 for graded MS70 2026 Silver Eagles—literally the same ounce of silver in a plastic slab with a fancy label (APMEX MS70 PCGS, GovMint MS70 PCGS, CoinAdvisor MS70 Damstra Signed).
Why Spot Prices “Lie”
The “spot price” you see on a screen is a paper benchmark, not a checkout button. On January 13, 2026, that benchmark was around $89/oz (Trading Economics, Mining.com).
Dealers stack premiums on top for:
Hedging their inventory in a volatile market
Shipping, insurance, and payment fees
Profit (fair)
“Confusion tax” on new buyers (many would say that part is not so fair)
Some premium is normal.
But if $89 spot turns into a $199 “MS70 Damstra‑signed” Silver Eagle (CoinAdvisor) just because there’s a plastic slab and autograph involved?
That’s not “physical reality.”
That’s a ~124% markup over spot—a very steep uplift for the same ounce of silver.
The Part Most Buyers Miss: The Spread
Buying is only half the game.
The other half is what you can sell it for.
Here’s how this plays out in January 2026:
A dealer like Money Metals will sell a 2026 Silver Eagle for $102.79…
and buy it back for about $82.38 on the same day (Money Metals 2026 ASE pricing & buyback).
That’s roughly a 20% loss the instant you check out—before silver moves a single cent.
Generic rounds might be cheaper to buy (around spot + $2–4 at competitive dealers, roughly $91–93 when spot is ~$89), but many shops only bid spot minus on resale (SD Bullion generic rounds, Bullion Exchanges buyback grid).
So many buyers feel hit twice:
On the way in (big premium over spot)
On the way out (discount to spot, or no bid at all)
That spread is where a lot of potential return quietly disappears.
Mathematically, if someone pays $102.79 and the dealer’s current bid is $82.38, spot has to move from the high‑80s to around $110/oz just to get back to breakeven, assuming spreads don’t widen further (Audit of Money Metals spreads, Money Metals spot feed).
And local coin shops aren’t always a safety valve. In a recent video walk‑through, multiple shops either refused to buy silver entirely or bid well below spot when prices spiked into the high‑$70s (YouTube: trying to sell silver at $78). When spot is pushing $89, that risk can be even higher.
Here’s a quick‑and‑dirty way many buyers look at premiums in this kind of market:
If the premium is over 15% on a common silver coin (like a Silver Eagle):
→ That’s where a lot of experienced stackers simply walk away. They see it as funding the marketing budget more than their stack.
(Think $103.95 at GovMint when spot is ~$89 — +16.8% (GovMint ASE BU).)
If the premium is under 10% for Eagles (or lower for generic rounds):
→ Many consider that “within reason” in a stressed market.
(Think $94–96 at places like Hero Bullion or LCR Coin — 6–8% over spot (Hero Bullion 2026 ASE, LCR Coin 2026 ASE).)
If someone wants lower friction altogether:
→ A lot of buyers look at gold instead. Premiums on common 1 oz gold coins are often 1–5% in this market, versus 15%+ on Silver Eagles (CBS on gold premiums, Silver premium audit).
Also: many people try to avoid the extra cost of credit‑card pricing when they can. The gap between check/wire and card pricing is often another ~4–5% tacked onto already‑expensive silver (APMEX pricing tiers example).
Micro‑CTA:
Right now, pull up your last silver order.
Divide the final price per ounce by spot at the time.
If that number is more than 15% over spot, most seasoned buyers would say you paid rich premiums for those ounces.
The “Yeah, But…” Crowd
You’ll hear this a lot:
“Spot is just a paper number. Physical silver should cost more.”
There’s truth there.
You can’t click and get a Silver Eagle in your hand at pure spot.
But the key word is degree.
A fair premium, in most people’s eyes:
Covers real costs
Leaves room for a normal dealer profit
Adds a few bucks over spot, not $14–20 on a basic bullion coin or $110+ for a plastic case and autograph
There is no obvious bullion-market reason a standard 2026 Silver Eagle should jump from ~$89 spot to $199 just because it’s graded MS70 with a special label (CoinAdvisor MS70 example).
If you’re a serious numismatist chasing specific labels, that’s a different game.
If you’re simply stacking ounces, graded modern bullion is widely seen as one of the fastest ways to pay up for silver.
Your Turn: Where’s Your Line?
Hit reply and tell me:
What’s the maximum premium over spot you’re willing to pay for a 1 oz Silver Eagle—and why?
Be specific.
“10% and only for Eagles” is more useful than “it depends.”
I’ll feature some of the best answers (anonymously) in a future issue.
What To Do Next
Here are 3 simple moves many stackers use to stay sane in a high‑premium market:
Audit your past buys.
Look at your last 1–3 silver purchases and calculate the true premium.
(Final price per ounce ÷ spot at the time − 1 = your % over spot.)
Set your personal ceiling.
Decide your own “walk away” number for silver premiums (for example, 12–15%) before you shop.
If a dealer is at GovMint‑style pricing when Hero‑style pricing is available, you’ll know how that compares to your line in the sand (GovMint ASE BU, Hero Bullion ASE BU).
Find your “Dealer D.”
Whatever dealer consistently lives in that 5–7% range over spot on common bullion is the one many buyers lean on for base stacking.
Some people bookmark those shops and build most of their core ounces there—using high‑premium, “anniversary,” or graded pieces, if at all, as tiny side bets rather than the foundation.
Referral Corner
If this helped you see where dealer markups really live, forward it to one friend who’s thinking about stacking silver.
They’ll keep more ounces.
You’ll look like the smart one.