The bid-ask spread is the difference between the dealer's selling price (ask) and buyback price (bid) for the same coin or bar. It is your cost if you buy and sell right away.
Ask, bid and the round trip
Every US bullion dealer shows two prices. The ask is what you pay. The bid, often labeled "we buy" or "sell to us", is what the dealer pays you. Both are usually quoted relative to the spot price: the ask above it, the bid near or below it.
Example with fixed numbers: spot is $2,000. A dealer sells a 1 oz Gold Eagle at $2,080 (4% over spot) and buys it back at $2,020 (1% over spot). The spread is $60, or about 2.9% of the ask. If you also paid $25 shipping and $15 insured shipping to sell, the round trip costs $100. Gold must rise about 5% before you break even.
What makes the spread wider or narrower
| Product | Typical spread | Why |
|---|---|---|
| 1 oz American Eagle or Buffalo | Narrow | Recognized everywhere, easy to resell |
| 1 oz bar from a known refiner | Narrow to medium | Low premium, but buyers check brand and assay |
| Fractional coins, 1 g bars | Wide in percent | Fixed handling cost on little metal |
| Junk silver | Narrow | Trades close to melt value |
| Proof and graded coins | Wide, unpredictable | Price depends on collector demand |
| Scrap jewelry | Widest | Must be assayed and refined |
Market conditions matter too. In a buying panic, dealers raise asks faster than bids. In a selling wave, bids can drop below spot.
Taxes are part of the exit cost
When you sell at a profit, the IRS taxes the gain as a collectible: up to 28% if held more than one year, ordinary rates otherwise. The details are in our guide to US bullion taxes.
How to keep the spread small
- Buy widely known products, such as the coins in our American Eagle gold coin comparison.
- Before selling, ask two or three buyers for a bid. Our US bullion dealer directory by state lists local shops, for example coin dealers in Florida.
- Check the metal value first with the gold melt value calculator so you know the floor.
- Avoid paying a large premium for numismatic coins if you plan to sell them as bullion.
Related terms
Premium Over Spot Spot Price Precious Metals Sales Tax Numismatic Coins
FAQ
What is a buyback price for gold?
It is the bid price a dealer pays you for your gold, usually quoted as a percentage above or below spot.
How much do you lose when selling gold?
You lose the spread plus any shipping and fees, which for popular 1 oz coins is often a few percent and for jewelry or proofs much more.
Do dealers buy gold above spot?
Dealers sometimes pay a small amount over spot for popular coins like American Eagles, while bars and scrap usually sell at or below spot.