Tools
Dollar Cost Averaging Calculator
Calculate the average cost per ounce if you invest a fixed dollar amount into precious metals each month. Plan your DCA strategy with current spot prices.
This is a forward projection using the current spot price. Actual results depend on future price movements. The premium accounts for the typical markup dealers charge above spot price.
Frequently Asked Questions
What is dollar cost averaging for precious metals?
Dollar cost averaging (DCA) is an investment strategy where you invest a fixed dollar amount at regular intervals, regardless of the current price. When applied to precious metals, you buy more ounces when prices are low and fewer ounces when prices are high. Over time, this can reduce the impact of price volatility on your average cost per ounce.
Is DCA better than buying a lump sum of gold?
Neither strategy is universally better. DCA reduces the risk of buying at a peak by spreading purchases over time. Lump sum investing performs better in rising markets because you are fully invested sooner. DCA is especially useful for investors who want to build a position gradually or who receive income on a regular schedule.
What is a typical premium over spot when buying monthly?
Premiums vary by product and dealer. For gold bullion coins, expect 3 to 7 percent over spot. For silver, premiums are higher, typically 10 to 20 percent over spot for popular coins. Some dealers offer DCA programs with slightly lower premiums for recurring purchases. This calculator lets you set a custom premium percentage.
How does this calculator work?
This is a forward-projection calculator that uses the current spot price to estimate your results. It calculates how many ounces you would accumulate each month based on your investment amount, the spot price plus your specified premium, and the number of months. Actual results will vary because metal prices change over time.