Measure the economic gap between what a dealer charges you and what that dealer is willing to pay you back. This is especially useful when comparing physical bullion dealers, online shops and buyback programs.
A product can have a high premium over spot but still offer a narrow dealer spread, or the reverse. Premium describes the purchase price relative to metal value; dealer spread describes the gap between buy and sell prices.
For an investor planning to resell, the dealer's buyback price can matter more than the original sticker premium. A low purchase premium is not automatically attractive if the dealer's buyback discount is large.
The difference between dealer selling and buyback prices.
Sell price minus buyback price.
No.
Yes.