Bid-Ask Spread

Two prices for the same bar

Every dealer quotes two numbers:

• Ask (sell price): what you pay to buy. It sits above the spot price.
• Bid (buy back price): what the dealer pays you. It usually sits at or below spot.

The gap between them is the spread. If you buy and then sell on the same day, the spread is roughly what you lose.

Example with round numbers

Say a dealer sells a 1 oz bar at AED 11,350 and buys it back at AED 10,950 (illustrative figures). The spread is AED 400, or about 3.5% of the ask. Gold has to rise by that much before you break even. With a TT bar at a tighter spread, the break even point comes sooner.

How the spread looks in the UAE

Dubai is a busy, liquid market, and buy back is easy for well known products. What affects your spread:

1. Product: TT bars, kilobars and major coins from recognised refiners and mints get the best bids.
2. Condition: scratched coins or bars without packaging may be bought at a discount.
3. Jewellery: when you sell 21K or 22K jewellery you get the gold value only; making charges and the 5% VAT you paid are not returned.
4. VAT: investment metal of 99% purity is zero-rated both ways, while 5% paid on a 22 carat coin is a cost you do not recover as a private seller.
5. Identity checks: large cash sales go through dealer AML checks, so bring your Emirates ID or passport.

How to keep the round trip cheap

• Buy standard products: recognised bars and bullion coins, ideally from refiners on a Good Delivery list.
• Ask for the buy back price first: a dealer that quotes both prices openly is easier to trust.
• Look at the entry premium: the lowest premium over spot narrows the spread from your side.
• Hold for longer: the spread is a one-off cost, so it matters less over years.

Our AED ranking of gold coin offers handles the buying side, and the list of dealers serving the UAE helps you find who else quotes the same product.