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Last updated: August 6, 2026 · By White Metal Resources Editorial
Quick answer: The spread is the gap between what a dealer will sell a coin for and what it will pay you to buy the same coin back the same day. On common bullion silver, platinum, and palladium coins the dealer premium above spot is typically 3 to 8 percent, and often wider on small denominations. Premiums on numismatic, proof, or graded coins run far higher and are the single biggest hidden cost in a precious metals IRA.
Short on time? The essentials
- Spot is the wholesale reference price. Bid is what a dealer pays you. Ask is what the dealer charges you. The gap between bid and ask is the spread.
- Premium is the amount above spot that the ask price carries. Markup is the dealer's share inside that premium.
- Common bullion coins in silver, platinum, and palladium usually carry a 3 to 8 percent dealer premium over spot for retail buyers.
- Fractional coins, small bars, and off-year issues carry wider spreads because minting and handling cost is spread over less metal.
- Proof, graded, and so-called premium coins can carry markups of 20 to 100 percent over spot; that gap is real cost, paid up front.
- A precious metals IRA pays the spread twice: once on the purchase and again on the eventual sale, because the sell price is the bid.
- Federal law under 26 U.S.C. section 408(m) sets the fineness gate for eligible metals. Paying a premium does not raise a coin above that line.
- The one question that reveals the spread: ask the dealer, in writing, for the buy price and the same day sell-back price on the exact product.
This page explains what "the spread" actually is on a precious metals IRA purchase. It covers why the spread exists, what a reasonable range looks like on the white metals (silver, platinum, palladium), and how to see the number in writing before you fund an account. Every figure links to a public source. Prices used for illustration are labeled as such.
Spot, bid, ask, spread, premium, markup: the six words
Six words show up in every conversation about dealer pricing. Getting them straight is the fastest way to spot a wide markup.
Spot is the wholesale reference price for an ounce of the metal, quoted in near-real time on futures and forward markets. The London Bullion Market Association publishes daily benchmarks for silver, platinum, and palladium, and the CME Group publishes live futures quotes (source: LBMA precious metal prices).
Bid is the price a dealer is willing to pay you for a coin. Ask is the price the same dealer is charging you to buy the same coin. Both numbers move with spot, but they sit on either side of it.
Spread is the gap between the bid and the ask. It is the round-trip cost of buying and immediately selling the same coin back to the same dealer.
Premium is the amount the ask price sits above spot on a per-coin basis. It covers real costs the dealer and the mint face: minting, testing, packaging, shipping, insurance, and the dealer's own margin.
Markup is the dealer's own share inside that premium: what is left after the mint's fee, the shipper, the assayer, and the wholesaler are paid. On common bullion the markup is a modest share of the premium. On graded or proof coins it can dwarf every other line.
| Term | What it is | Who quotes it |
|---|---|---|
| Spot | Wholesale reference price per troy ounce | LBMA, CME futures, live data providers |
| Bid | Price the dealer will pay you for the coin | Retail dealer, live on the product page |
| Ask | Price the dealer is charging you for the coin | Retail dealer, live on the product page |
| Spread | Ask minus bid, on the same product, the same day | You calculate it from the two dealer numbers |
| Premium | Ask price above spot, per coin | Retail dealer, sometimes shown, often implied |
| Markup | Dealer's own share inside the premium | Almost never disclosed on a retail page |
Sources: LBMA precious metal prices; CME Group metals futures. Definitions are structural and apply to silver, platinum, and palladium equally. Checked for 2026.
Why the spread exists at all
A spread is not a scam by itself. It pays for real work between the mine and your vault. A blank has to be cast, struck, tested for purity, tubed, boxed, insured, and shipped. The dealer holds inventory that can lose value if spot falls before it sells. That inventory risk is priced into every coin on the shelf.
The spread also compensates the dealer for making a two-way market. A firm that will always buy your coin back needs a bid that leaves it a small margin against the ask, even on a slow day. Without a spread, dealers would only sell, and a saver with metal to unwind would have no easy exit.
What matters for an IRA is not whether the spread exists, but how wide it is on the exact product you are buying. A reasonable spread on a common bullion coin is a cost of doing business. A wide spread on a graded or proof coin is the largest single fee on the account.
Typical spread ranges on white-metal bullion coins
On common bullion coins the dealer premium above spot for retail buyers typically sits in the 3 to 8 percent range for silver, platinum, and palladium, and it widens for smaller denominations. Bars often sit lower per ounce than coins because minting is simpler and inventory turns faster.
Two structural rules explain most of the variation. First, minting and handling cost is roughly fixed per coin, so a small coin carries a bigger percentage premium than a large one. A one tenth ounce coin usually costs several times as much per ounce over spot as a one ounce coin of the same series.
Second, coins with heavy retail demand (Silver Eagles, Platinum Eagles, Palladium Maple Leafs) usually carry higher premiums than generic rounds or bars, because the sovereign coin is easier to resell.
The Financial Industry Regulatory Authority has warned retail investors for years that dealer markups on physical metal are a major hidden cost, especially on products sold as premium or collectible (source: FINRA investor alert). The SEC has issued parallel warnings on retail bullion (source: SEC investor.gov).
| Product category | Typical retail premium over spot | Why the range sits where it does |
|---|---|---|
| 1 oz silver bar (generic refiner) | About 3 to 6 percent | Simple minting, fungible product, quick inventory turn |
| 1 oz American Silver Eagle | About 15 to 30 percent | Sovereign coin, strong retail demand, higher mint fees |
| Fractional silver (tenth or quarter ounce) | Often 25 percent or more | Fixed minting cost spread across less metal |
| 1 oz platinum coin or bar | About 4 to 8 percent | Thinner retail market, wider dealer inventory risk |
| 1 oz palladium coin or bar | About 5 to 10 percent | Thin retail supply, larger bid-ask on the wholesale side |
| Proof or graded coin (any white metal) | Often 20 to 100 percent, sometimes more | Rare-coin premium layered on top of the bullion premium |
Ranges are structural, drawn from live retail pricing at APMEX, JM Bullion, and other major dealers; verify the same day buy price and sell-back price on the exact product before you fund. Sources: LBMA, CME Group, FINRA investor alert, SEC investor.gov. Checked for 2026.
Why numismatic and proof coins carry the widest spreads
Numismatic coins, graded slabs, and proofs are priced on scarcity and condition, not on metal content. A one ounce proof coin contains the same troy ounce of silver, platinum, or palladium as a bullion version of the same coin. Yet the retail ask can sit two or three times higher, and the sell-back bid can revert most of the way to bullion. That difference is the widest spread in the market.
Two structural facts drive this. First, resale liquidity is thin. Bullion coins trade at close-to-spot bids at every major dealer. Numismatic and proof coins may only find a wide bid at a handful of specialist firms. Those bids often ignore the collectible premium and price the coin on melt value alone.
Second, the Internal Revenue Code closes the door on many collectible coins for IRAs. Section 408(m)(3) narrowly authorizes bullion and specific sovereign coins; the general collectibles ban in Section 408(m)(2) still applies to the rest (source: 26 U.S.C. section 408).
The Commodity Futures Trading Commission has repeatedly acted against firms selling overpriced coins to retirement savers. In one 2020 order, the CFTC required JPMorgan Chase to pay a total of 920.2 million dollars over spoofing that spanned gold, silver, platinum, and palladium futures (source: CFTC release 8260-20). Retail buyer harm looks different from institutional spoofing, but the incentive is the same one. A wider spread is more profitable when the buyer cannot see the reference price.
Why the spread hits an IRA twice
An IRA is not a trading account. Metal bought inside a self-directed IRA is meant to sit in a depository for years. That structure changes how the spread lands on you.
On day one, the account pays the ask price on every coin. That is one full crossing of the spread. Years later, when you or a beneficiary sells the metal back, the account receives the bid price. That is a second crossing. Together, the two crossings equal the full round-trip spread, plus any movement in the underlying spot price during the holding period.
The one-time crossings compound against you if the account trades within itself. Some pitches encourage a saver to swap products (out of Silver Eagles into a "premium" coin, out of one platinum series into another) inside the same IRA. Each swap is a full round trip. Each round trip pays the spread again, and the metal count in the vault can fall while the account balance looks unchanged.
A worked example on a 50,000 dollar rollover
Picture a saver rolling 50,000 dollars from a former employer 401(k) into a precious metals IRA. Assume the intended allocation is 1 oz Silver Eagles at a silver spot price of 30 dollars per ounce. The math below is illustrative, not a quote from any dealer.
- Fair bullion premium at 20 percent over spot: ask price is 36 dollars per coin. The 50,000 dollars buys about 1,388 coins, so the amount that pays the dealer premium is about 8,328 dollars and the metal value at spot is about 41,640 dollars.
- Wide numismatic premium at 60 percent over spot: ask price on a graded 1 oz coin is 48 dollars. The 50,000 dollars now buys about 1,041 coins, so the amount paying the premium is about 18,780 dollars and the metal value at spot falls to about 31,220 dollars.
- Gap between the two structures: the saver ends year one with about 10,420 dollars less metal in the vault under the wider spread, for the same 50,000 dollar rollover.
- Round-trip cost: if the sell-back bid on the graded coin only reflects melt value, the collectible premium paid on day one is never recovered on the sale. Under the fair bullion path, the sell-back bid also sits near spot, so the round-trip loss is bounded by the buy premium plus a small bid discount.
Point one: the spread is not a fee schedule item, but it moves more dollars than the schedule ever will. Point two: the wider the spread, the harder it is for the metal price to rise enough to catch up.
The figures above are illustrative, not a quote from any firm. This is not financial advice; consult a licensed advisor for your situation.
How to see the spread before you sign
A dealer that will not price a same day buy and sell-back on a specific product is a dealer whose spread you cannot see. The steps below make the number visible before you fund the account.
- Pick the exact product. Choose the coin or bar, the mint, and the weight (for example, 1 oz Platinum Eagle, current-year, sealed tube). Generic quotes on a category hide the real number.
- Ask for the ask price in writing. Get the per-unit price and the total for the quantity you would actually buy, on today's date, on that specific product.
- Ask for the same day sell-back price in writing. On the same product, the same quantity, the same day. This is the number most retail sites do not display next to the buy price.
- Subtract to see the spread. Ask minus bid, divided by ask, gives the spread as a percentage. A common bullion coin in the 5 to 8 percent range is normal. A double-digit spread on a common coin is a warning sign.
- Repeat at a second dealer. Prices move together across the industry, so any large gap between two written quotes on the same day and the same product is a real cost difference, not a market difference.
- Compare against the LBMA benchmark. A one-minute check against the day's published spot lets you sanity-check both the ask and the bid.
Five patterns that hide a wide spread
The dealer side of a precious metals IRA is where most disputes arise. Common patterns that hide a wide spread include:
- Free silver or free metal promotions. The free coins are usually paid for through a wider spread on the coins you actually buy, so the total dollars spent per ounce of metal actually delivered rises.
- Numismatic, graded, or "premium" upsells. These sit outside the standard bullion category and carry the widest spreads; several fail the fineness gate under Section 408(m)(3) altogether.
- Buy prices quoted without a sell-back number. An ask price alone does not show the spread; the bid on the same product is the other half of the sentence.
- Countdown timers and "today only" pricing. Urgency is a sales tactic. A real bid and ask do not expire tonight; the LBMA benchmark will still be there tomorrow.
- Bundled products sold as one package. A bundle price hides the per-coin premium on each item; ask for the per-item price and the per-item sell-back price so the spread is visible on every line.
None of these patterns are illegal on their face. The concern is how much of a rollover is spent on the spread before the metal enters the vault, and whether the saver saw that number in writing before signing.
When a precious metals IRA is a bad idea
An honest guide has to name the cases where this account works against you. A precious metals IRA is usually a bad idea in these situations:
- Small account against the fee drag. Setup, annual custodian, storage, and the dealer spread hit a small account very hard as a share of the balance. A modest position may never recover the friction.
- You may need the money within a few years. Selling means crossing the spread again. Before age 59.5 you also owe the 10 percent federal additional tax on top of ordinary income tax (source: IRS Publication 590-B).
- Neither the ask price nor the bid price is available in writing. If a dealer will not put both sides of the spread on paper, you cannot see the cost.
- The pitch is centered on graded or proof coins. Those sit outside the standard IRA-eligible bullion category, carry the widest markups, and can trigger a deemed distribution when they fail the fineness or carve-out test.
- You are chasing a guaranteed return. Nobody can predict where metal prices will go. A pitch that promises guaranteed gains is a warning sign, and it is the exact pattern federal regulators have acted on.
If one of these describes you, slowing down is the sensible call. Keeping the account clean for later is easier when the paperwork is thin and the spread is small.
Spread questions savers ask most
What is a fair dealer spread on a precious metals IRA purchase?
On common bullion silver, platinum, and palladium coins, the dealer premium above spot for retail buyers usually sits in the 3 to 8 percent range. Sovereign coins like Silver Eagles run higher because of minting fees and demand. On bars, the range is often lower per ounce. Anything much above these ranges on a common product is a wider spread than the market usually requires.
How is the spread different from the premium?
The premium is the amount the dealer's ask price sits above spot on a per-coin basis, and it always exists to cover real costs of minting, testing, and inventory. The spread is the round-trip gap between the ask and the bid on the same product, the same day. Two dealers can quote the same premium and offer very different spreads if their sell-back prices diverge.
Why do fractional coins carry such wide spreads?
Minting cost per coin is largely fixed. A tenth-ounce silver coin costs almost as much to strike, test, and package as a one-ounce coin, but there is only one tenth of an ounce of metal to spread that cost over. That is why fractional coins routinely carry premiums of 25 percent or more above spot on the retail side.
Do bars carry a smaller spread than coins?
Usually yes. Bars are simpler to manufacture, easier to store, and quicker to turn in a dealer's inventory. The premium on a good-delivery-grade one kilogram silver bar or one ounce platinum bar usually runs below the equivalent sovereign coin. Some IRAs require specific refiner brands, so check the custodian's approved list before buying bars.
Does an IRA change what the dealer can charge for the spread?
No. Retail dealer pricing on physical metal is not federally rate-regulated. The custodian enforces the fineness gate and files the reports. The dealer sets the price. That is why the diligence question is the same inside or outside an IRA: get the ask, get the bid, on the exact product, in writing.
Can I avoid the spread by buying an ETF instead of physical metal?
An ETF has its own costs (management fees, tracking error, share bid-ask spreads on the exchange), but it does not carry a mint or dealer premium on the underlying metal. A precious metals ETF held inside a traditional IRA is a different product category from physical bullion in a self-directed IRA. The choice depends on whether you want physical possession by an approved depository.
Where can I check the current spot price for silver, platinum, and palladium?
The London Bullion Market Association publishes daily benchmark prices for silver, platinum, and palladium on its prices and data page. CME Group publishes near-real-time futures quotes for the same metals. Both are free and provide a neutral reference against any dealer's ask.
Is a lower spread always better?
Usually, but not always. A very thin spread on a small dealer may come with weaker buy-back liquidity or slower shipping. On a precious metals IRA the fair test is the round-trip spread on a specific product. Look for a dealer with a real published sell-back policy, backed by a custodian and depository the paperwork can actually reach. Low spread plus reliable buy-back beats an ultra-low spread with a wobbly counterparty.
Sources
- London Bullion Market Association, precious metal prices. Checked for 2026.
- CME Group, metals futures and options. Checked for 2026.
- FINRA, Gold Glitters: Be Cautious When Buying (investor alert). Checked for 2026.
- U.S. Securities and Exchange Commission, investor.gov, precious metals. Checked for 2026.
- U.S. Commodity Futures Trading Commission, Release 8260-20 (JPMorgan order). Checked for 2026.
- IRS, Publication 590-B, Distributions from Individual Retirement Arrangements. Checked for 2026.
- Cornell Legal Information Institute, 26 U.S.C. section 408. Checked for 2026.
- APMEX, live spot prices and product listings. Checked for 2026.
- JM Bullion, live silver price and product listings. Checked for 2026.
