Gold Buy/Sell Spread Explained
The difference between a quoted buy and sell price can materially affect the result of a gold transaction.
How the math works
Dealers quote two prices: what they'll sell gold to you for (ask) and what they'll buy it back from you for (bid) — the gap between them, the spread, is built-in dealer margin that a buyer pays on entry and effectively pays again on exit, even if the spot price hasn't moved.
Worked example
If gold's spot price is $2,050/oz, a dealer might sell at $2,090 (ask) and buy back at $2,010 (bid) — a $80 spread. Buying and immediately selling back at those quotes loses $80/oz even though the underlying spot price didn't change at all.
What to watch for
- A wider spread means the spot price has to move further in your favor before a round-trip transaction is profitable
- Spreads tend to be tighter for larger, more standard bullion products and wider for coins, jewelry, or small quantities
- The spread is separate from any flat transaction fee a dealer may also charge
Practical takeaway
Before buying, ask for both the buy and sell price from the same dealer — the spread between them tells you how much the spot price needs to move before you'd break even.