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How Every Dealer Makes Money

Every dealer earns through the spread between metal spot price and the finished product price. The question is how wide the gap is and whether it is written down.

Revenue

Product spread over spot

Risk

Higher-margin product steering

Control

Written margin disclosure

Mechanics

The margin is real. It should be visible.

Every dealer earns through the gap between spot price and finished product price. That margin covers sourcing, handling, inventory risk, operations, and profit.

If spot sits at $5,179 and a coin is priced at $5,438, the dealer premium is $259, roughly 5 percent.

  • Ask for the exact margin on each product
  • Compare bars, sovereign coins, and non-bullion products separately
  • Include custodian and storage costs in IRA comparisons
  • Know buyback terms before purchase

Typical margin ranges

ProductTypical MarginExample
Standard bullion bars3-8%$3,000-$8,000 on $100,000
Government-minted coins5-12%$5,000-$12,000 on $100,000
Non-bullion collector coins15-25%+$15,000-$25,000+ on $100,000

Liberty Gold Silver is a precious metals dealer. It does not provide tax, legal, or investment advice.

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