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Sky high premiums above market norms lead to massive money loss
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Allegiance Gold is an unethical company manipulating and swindling unsuspecting buyers. This is a scam. My opinion is based on a professional portfolio analysis and a Grok AI analysis of my over 1.1 million in purchases from Allegiance Gold, and ensuing severe losses despite good spot price performance on gold, up 75%, and silver, up by 27% . The following analysis is by Elon Musk’s Grok AI. Loss on date of purchase and LOSS on date of analysis 5/05/25. (Grok AI conclusion: “ALLEGIANCE GOLD’S PRICING STRUCTURE PUTS YOU AT A DISADVANTAGE. ALLEGIANCE GOLD IS NOT AN IDEAL CHOICE FOR INVESTORS SEEKING TO MAXIMIZE RETURNS.”)
“Loss on the Day of Purchase:
Why did you lose money on the day of purchase? - Because you paid more than the spot value due to the premium, but while this is typical for physical metals, the PREMIUMS YOU PAID through Allegiance Gold were UNUSUALLY HIGH:
Silver coins: Premiums ranged from 56% to 68% over the spot price (e.g., $14.42 to $16.76 per ounce above a spot price of around $23-$25). TYPICAL PREMIUMS for silver coins are 5-20%.
Gold coins: Premium was 53% over the spot price (e.g., $982.13 per ounce above a spot price of around $1,850-$1,862). Typical premiums for gold coins are 2-10%.
Platinum coins: Premiums were 56-58% over the spot price (e.g., $608.22 to $622.91 per ounce above a spot price of around $1,040-$1,107). Typical premiums for platinum coins are 10-20%.
Impact: The higher the premium, the more the metal's price must rise for you to break even.
2. Loss as of Today : The Role of Spot Price Movements
Silver: The spot price rose from around $23-$25 per ounce in 2022 to $32.66 in 2025.
HOWEVER, THIS INCREASE WASN’T ENOUGH TO OFFSET the 56-68% premiums.
Is Allegiance Gold a Good Company for Investment?
If your goal is to make money and achieve a good return on investment, Allegiance Gold may not be the best choice due to its high premiums. Here's an evaluation:
High Premiums:
As noted, Allegiance Gold's premiums (56-68% for silver, 53% for gold coins, 56-58% for platinum) are well above industry standards (5-20% for silver, 2-10% for gold, 10-20% for platinum).
High premiums make it harder to profit because the metal's spot price must rise significantly just to cover the initial cost. This is a major disadvantage for investors
Investment Implications:
For someone wanting to make money, minimizing premiums is critical.ALLEGIANCE GOLD’S PRICING STRUCTURE PUTS YOU AT A DISADVANTAGE FROM THE START, REQUIRING EXCEPTIONAL MARKET GAINS TO SEE A RETURN.
Example: With a 60% premium on silver, the spot price would need to rise by more than 60% for you to break even-far more than the 30-40% increase seen since 2022.
CONCLUSION: ALLEGIANCE GOLD IS NOT AN IDEAL CHOICE FOR INVESTORS SEEKING TO MAXIMIZE RETURNS. The high premiums significantly reduce your profit potential, making it a less competitive option compared to dealers with lower markups.”
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