Why do gold purchase, buyback and spot prices differ?

Modified on Wed, 9 Sep at 11:05 AM

The spot price serves as a reference for the value of gold itself. It is not automatically the final price at which you can buy or sell a particular gold bar.


Prices for physical gold also reflect manufacturing, packaging and distribution costs, as well as dealers’ margins. The price at which you buy a bar from a dealer is therefore usually higher than the price at which the same dealer would buy it back at the same time. This difference is called the spread and is a normal part of trading physical gold.


Even if the gold price has not changed, you may receive less when selling your bar than you paid when buying it.The amount depends on the current buyback price and the chosen dealer’s terms.


Buyback with no separate fee does not mean buyback without a spread or at the spot price. Costs and margins may already be included in the offered price. It is therefore important to consider the terms of a future sale before you start saving.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article

Need help?

Didn't find what you were looking for? Send us a message, we're here to help.

Contact support