Refined gold and silver - in the form of coins and bars - is called BULLION. Jewelry and nuggets, found in the sediment of rivers, is not bullion.
Banks and large institutions probably buy their gold and silver in heavy ingots directly from the refineries. However, individuals buy bullion from bullion dealers and coin shops.
The price of gold and silver in the futures market is known as the SPOT PRICE.
The price a buyer pays to a dealer is usually the spot price plus a premium. The premium represents the markup the dealer adds to the price to pay for costs and make a profit.
When a seller sells bullion to a dealer the dealer will offer the spot price minus a premium.
The size of the premiums depend on the dealer, the size of the order and how much stock the dealer has of a particular product.
An individual who buys or sells gold to a dealer will always have to pay a premium.