Dealer Selling Price
Also: Selling Price, Issue Price, Ask Price (retail), Offer Price
The dealer selling price is the price at which a precious metals dealer sells a product to a buyer — it always exceeds the spot price and includes minting or refining costs, the dealer's margin, and where applicable VAT.
The dealer selling price — also referred to as the selling price or issue price — is the price a buyer pays when purchasing precious metal products (bars, coins, granules) from a commercial dealer. It consists of the current spot price plus a premium (agio) that covers all of the dealer's costs and margins. The dealer selling price therefore always exceeds the raw commodity price on the international futures markets.
Components of the Dealer Selling Price
The dealer selling price is made up of several cost layers:
| Component | Description | Typical magnitude |
|---|---|---|
| Spot price | Current market price of the fine ounce | Base (100 %) |
| Minting/production costs | Manufacturing cost for coins or bars | 1–4 % |
| Dealer margin | Profit mark-up by the distributor | 1–5 % |
| Logistics & insurance | Transport, storage, insurance | 0.5–2 % |
| VAT (where applicable) | 20 % on silver, platinum, palladium; 0 % on investment gold | variable |
For investment gold, VAT is waived in many jurisdictions, which is why the dealer price mark-up there is comparatively small. For silver, platinum, and palladium, however, most dealers charge the full standard VAT rate on the gross price. Some silver dealers alternatively apply the margin scheme (§ 25a UStG), under which tax only applies to the trade margin — resulting in an effectively lower mark-up, but this varies from dealer to dealer.
Formula
Dealer price = spot price × fine weight + premium (abs.) + VAT (if applicable)
Anyone wishing to know the pure metal value of a piece can calculate it using the melt value calculator. The difference between the melt value and the dealer selling price paid essentially equals the premium.
Dealer Selling Price vs. Buying Price
The buying price is the counterpart: the price at which the dealer buys the same goods back. The difference between the dealer selling price (sale) and the buying price (repurchase) is called the spread.
- Dealer selling price (ask): The price the buyer pays when purchasing.
- Buying price (bid): The price the seller receives when selling back.
- Spread: Dealer selling price minus buying price — the implicit transaction fee.
A tight spread (e.g. for standard 1 oz bullion coins such as the Krugerrand) indicates a liquid, highly competitive market. Exotic products, collector coins, or small denominations often have considerably wider spreads.
Factors Influencing the Dealer Selling Price
- Spot price movements: Rising or falling precious metal prices are immediately reflected in the dealer selling price.
- Denomination: Small units (1 g, 2 g) carry proportionally higher production costs.
- Product type: Struck bullion coins are more expensive than cast bars of the same weight.
- Demand situation: In times of crisis or supply shortages, premiums can rise considerably.
- Dealer competition: More market participants compress margins and thereby the dealer selling price.
Using the current gold price as a reference and comparing it with the buying price calculator helps buyers to objectively assess offers from different dealers.
Tax Notes
The dealer selling price is the acquisition cost for tax purposes. It is relevant for calculating any disposal gain after the speculative holding period has expired. Note: This is not tax or investment advice — please consult a tax adviser for your individual situation.
In Brief
The dealer selling price is the actual purchase price for physical precious metal and always exceeds the spot price. Anyone comparing offers should always look at the total price including postage and taxes — the mark-up over the spot price is the decisive comparison criterion.