The bid-ask spread is the difference between the price a dealer will buy your metal for (the bid) and the price they will sell it for (the ask).
How It Works
The spread is how dealers earn revenue. A tighter spread generally indicates a more liquid, competitive market.
- Bid Price: What the dealer pays you when you sell
- Ask Price: What you pay the dealer when you buy
- Spread: The difference between the two
Typical Spreads
- Gold bars: Very tight (1–3%)
- Silver bars: Moderate (3–5%)
- Bullion coins: Moderate (3–8%)
- Numismatic coins: Wide (10–30%+ depending on rarity)
What This Means for You
When you buy physical metal, it must appreciate enough to cover the spread before you reach breakeven on a sale. This is why precious metals are best viewed as a medium-to-long-term holding.