Not all premiums deliver the same amount of gold. Compare several coins by premium dollars per fine gram and total premium percentage instead of relying on the headline premium alone.
A 5% premium on a small coin and a 5% premium on a large coin are not the same dollar burden. Normalizing the premium to fine-gold content gives a more useful measure of how much extra money is being paid for the product.
A coin with a lower premium can still be less attractive if its resale market, availability or transaction spread is worse. Use the premium ranking as one part of the purchase decision.
It measures the dollar premium relative to the fine-gold quantity obtained.
Not necessarily.
Yes, after fine-gold normalization.