Cost of selling · The Spread
The Spread You Pay Twice
No buyer pays spot. There is a refining cost and a margin between what a buyer pays and what the metal fetches, and any dealer claiming to pay full spot is leaving something out of the story.
No credit check and no obligation. If borrowing is the wrong answer for your situation, you will be told that first.
The whole argument, in one line
Selling is permanent and can be taxable.
A loan is neither.
65%
Advance against value
$15k
Minimum loan
Same
Bars returned
Live market
Business-purpose loans only. Not available in Nevada, Vermont, North Dakota and South Dakota.
What it actually means
The part that gets missed is that the spread is charged in both directions. You sell below spot, and if you rebuild the position later you buy above spot, paying a dealer premium on top. Sell and repurchase the same holding and you have paid the round trip — before the market has moved at all.
The specifics
- A sale is below spot. A repurchase is above spot, plus premium.
- The round trip is a real, calculable cost of changing your mind.
- Premiums on coins and small bars are wider than on large bars.
- It is charged whether the market went up, down, or nowhere.
The counter
Where this argument is weak
If you never intend to own metal again, the spread is charged once and this argument mostly disappears. The round trip only matters if you would rebuild the position.
Put a number on it
Instant estimate
What could you borrow?
Enter the ounces you hold. We advance up to 65% of market value.
| Metal | Spot / oz | Your oz | Value |
|---|---|---|---|
| Gold | $4,600.00 | $0.00 | |
| Silver | $69.00 | $0.00 | |
| Platinum | $1,840.00 | $0.00 | |
| Palladium | $1,329.00 | $0.00 |
Estimate only. Final advance rate and terms are confirmed after your collateral is inspected and verified. Spot prices are indicative and move continuously. Minimum loan is $15,000 (about $23,077 in collateral value at our 65% rate).
These are business-purpose loans and are not offered for personal, family or household use. Not available in Nevada, Vermont, North Dakota and South Dakota. If metal prices fall materially we may contact you about adding collateral or paying down the balance to keep the loan-to-value in range.
FAQ
Common questions
- How big is the spread?
- It varies by metal, form and market conditions, which is why nobody honest publishes a fixed number. Ask any buyer to show you their arithmetic against live spot.
- Do you pay full spot?
- No, and no buyer does. What matters is that the calculation is shown to you.
- Are premiums the same on coins and bars?
- No. Small coins carry wider premiums than large bars, both when you buy and when you sell.
- Does a loan avoid the spread?
- Repay the loan and the same metal comes back, so there is no sale and no repurchase. The cost is interest instead.
The other costs
The Tax Event
A sale can be a taxable disposal. A loan generally is not. The difference is structural, not clever.
Explore →
Losing the Position
The reasoning that made you buy metal does not usually change because an unrelated invoice landed this month.
Explore →
Replacement Cost
People price the buy-back at the price they sold for. It is almost never still that price.
Explore →
Selling on Someone Else's Schedule
When a supplier or a tax deadline picks the date, the price is whatever the market happened to be doing.
Explore →
What Borrowing Costs
The case against borrowing: a monthly obligation, a margin call mechanism, and an asset you could simply have sold.
Explore →
Scenarios
Where it shows up
Covering a Slow Quarter
A permanent decision about the metal, made in about ten minutes because one quarter came in short.
Explore →
Liquidating Dealer Inventory
Selling stock into a soft bid because the calendar said so, not because the bid was ever fair.
Explore →
Selling at a Market Low
Borrowing to avoid a sale at a low is a financing decision if you can service it, and a bet if you cannot.
Explore →
Next step
Run it both ways before you decide.
No credit check and no obligation. Tell us what you hold and what the money is for, and if selling is the better answer for your situation you will be told that first.
Business purpose only. Not available in Nevada, Vermont, North Dakota and South Dakota.