Bid vs. Ask in Bullion: Understanding the Spread
What bid and ask prices mean in bullion, why the spread exists, and how it affects your total cost.
The ask is the price a dealer sells at; the bid is what a dealer pays to buy back. The difference is the spread. A smaller spread means less of a loss if you sell soon after buying.
Why is there a spread?
Dealers cover handling, testing, shipping, and market risk.
Which products have smaller spreads?
Widely traded coins and bars from known mints often have narrower spreads, but this varies with the market.
How does it affect me?
If spot does not change, selling right after buying usually returns less than you paid.