The Spread
Gold and silver dealers make money on the spread — the difference between the current spot price of a metal and the price you pay for a specific product.
If gold spot is $2,700 per ounce and you buy a coin for $2,970, the spread is $270, or 10%. That $270 covers the dealer's costs and profit.
This is how the industry works — every dealer, including us. The question is not whether there's a spread. The questions are: how large is it, is it disclosed, and do you see it in writing before you commit?
Spreads by Product Type
The spread varies significantly depending on what you buy. This is one of the most important things to understand, because the product a dealer recommends directly affects their revenue.
| Product Type | Typical Spread | On $100,000 |
|---|---|---|
| Standard bullion bars | 3–8% | $3,000–$8,000 |
| Government-minted coins | 5–12% | $5,000–$12,000 |
| Semi-numismatic coins | 15–25% | $15,000–$25,000 |
| Numismatic / “collector” coins | 25–39%+ | $25,000–$39,000+ |
On a $100,000 investment, the difference between a 5% spread and a 30% spread is $25,000 in day-one cost. That's money gold needs to appreciate before you break even.
Why Product Recommendations Matter
When a dealer recommends specific products, they're also choosing how much they'll earn on the transaction. A dealer who recommends a numismatic coin with a 30% spread earns six times more than one who recommends a bullion bar with a 5% spread — on the same dollar amount.
This doesn't mean high-spread products are always wrong for everyone. But it does mean you should understand why a specific product is being recommended and what the spread is, so you can evaluate whether the recommendation serves your goals.
When you see the spread on each product in writing, side by side, you can make that evaluation yourself.
Custodian & Storage Fees
For Gold IRAs, the custodian and depository charge annual fees — typically $175 to $375 per year combined. These fees cover account administration, IRS reporting, and physical storage of your metals.
These fees are passed through to you and are separate from the dealer's spread. A complete cost picture includes both.
The Buyback Math
When you sell your metals back to a dealer, you receive the current bid price — which is below the ask price. There is no separate “buyback fee,” but the buyback price reflects the bid-ask spread.
Example:
- You buy a gold coin for $3,000 when spot is $2,700 (11% spread)
- You sell it back immediately — the buyback price is approximately $2,700 (the bid)
- Your “cost” on this transaction: $300
- Gold needs to appreciate 11% before you break even
“Fee-free buyback” is technically accurate — there's no separate fee charged. But it doesn't mean you sell at your purchase price. The buyback price is always based on the current market bid.
Break-Even Analysis
The spread determines how much the metal needs to appreciate before your investment returns to par. Here's what that looks like:
| Spread | $50K Investment | Day-One Difference |
|---|---|---|
| 5% | Immediate value: ~$47,500 | $2,500 to recover |
| 15% | Immediate value: ~$42,500 | $7,500 to recover |
| 30% | Immediate value: ~$35,000 | $15,000 to recover |
Understanding the spread before you buy is essential. It determines the true cost of your investment and how long until you're in a positive position.
What to Look For
Now you know what should be on your written breakdown — and what to ask about if it's not:
- The specific spread on each recommended product
- Annual custodian and storage fees
- Buyback terms, including the buyback spread
- Any other fees — setup, wire, transaction, or account closure
- The break-even timeline based on the total cost
A dealer confident in their pricing will put all of this on paper without being asked.
See what our written breakdown includes.
Schedule a consultation. Every spread, fee, and buyback term documented in writing.