Buyback Spread
What is Buyback Spread?
The buyback spread is the difference between the spot price and the price a dealer offers when buying metals back from you, typically 1% to 5% below spot. Combined with the 3-10% markup paid when buying, the round-trip cost of entering and exiting a Gold IRA position reaches 4-15% of position value before any annual fees apply.
Why does buyback spread matter for Gold IRA investors?
The buyback spread is one of the largest hidden costs in a Gold IRA and the reason short-term holding rarely makes sense. On a $100,000 liquidation, the spread alone costs $1,000-$5,000. Comparing buyback spreads across dealers (the spread can vary 2-4 percentage points) is one of the highest-leverage cost-saving moves available to Gold IRA holders.