Spread
The spread is the difference between the price at which a dealer sells a coin or bar and the price they pay when you sell it back. Explanation, typical percentages and how to keep the spread small.
The spread is the difference between a dealer's selling price (what you pay) and buying price (what you get back) for the same piece. The selling price sits above spot by the premium, the buying price around or below spot; the spread is the sum of both margins.
The spread is small for common, large pieces (a gold kilo bar or a one-ounce coin: a few percent) and large for small or exotic pieces and for silver, where VAT weighs in. The price must at least make up the spread before you break even on a sale; the Aevumex app therefore shows a break-even price against spot per item.
To keep the spread small: choose common products, buy larger units, compare buying prices of several dealers before selling, or sell to another stacker at a price close to spot.
Frequently asked questions
How large is the spread on a Krugerrand?
Usually a few percent: selling price a few percent above spot, buying price around spot.
Why is the spread on silver so large?
Because of 21 % VAT at purchase, which you do not get back when selling, and the relatively high minting cost on a cheap metal.
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