How Gold Prices Really Work — and What Most People Miss

Gold Buying Channels: From Banks to ETFs

Buying gold isn’t as simple as walking into a store and paying the spot price. In practice, where and how you buy changes your cost. For example, a local bank selling a 1-oz gold bar will charge a small premium (often around 1–2% above the spot price, rarely over 3%) plus a bid-ask spread of roughly 1–2%. Dealers tack on shipping, storage, and verification fees. By contrast, retail jewelers factor in fabrication, design, and brand costs – you might pay 20–30% above the spot price for a necklace. If you later sell that jewelry back, expect a discount: the shop usually pays ~15–20% below its sell price (after deducting smelting/testing costs). This gap reflects the cost of craftsmanship and the shop’s margin, and it updates slowly (often lagging by a day or more).