- Real gold returns = (sale price − purchase price) − premiums, spreads, storage and taxes, not the spot move alone.
- Typical markups: bars 1–8%, coins 3–10%, unallocated accounts 1–5% spread, ETFs 0.1–0.5%/yr, tokens 0.1–1%.
- Physical metal means intermediary-free ownership; paper forms trade cheaper but add counterparty risk.
The principle: price the full round trip
The real return on gold is not the spot move but the difference between what you paid (spot + premium) and what you can sell for (spot − discount), minus storage, fees and taxes. That is why every computed price on this site is labelled “dealer premiums and taxes not included”.
Comparison
| Route | Typical markup | Storage | Liquidity | Key risks |
|---|---|---|---|---|
| Bars | 1–8% over spot | Safe/deposit box — paid | Medium: sold back to banks/dealers at a spread | Counterfeits in private deals; VAT in some countries |
| Bullion coins | 3–10% | Same as bars | Medium; mass-market coins are most liquid | Condition/rarity markups |
| Unallocated metal accounts | Bank spread 1–5% | None | High: sold in one click | No physical metal; bank risk; often outside deposit insurance |
| Gold ETFs | 0.1–0.5%/yr fund fee + spread | None | High, exchange-traded | Brokerage infrastructure; access depends on jurisdiction |
| Tokenized gold (PAXG etc.) | 0.1–1% spread + network fees | Wallet/exchange | 24/7 | Issuer and crypto-infrastructure risk; regulatory uncertainty |
Markup ranges are indicative and vary by country, size and seller — always check the specific bank, dealer or broker.
Physical versus paper
Physical metal gives intermediary-free ownership, paid for with premiums, storage and lower liquidity. Paper forms (accounts, ETFs) and tokens are cheaper to trade but add a counterparty: a bank, a fund or a token issuer. The choice is a trade-off between costs and counterparty risk, not a search for the one “best” option.
Before buying
Price your target weight and fineness off the live quote in the calculator, check your currency's computed price on the price pages — and compare with the seller's quote: the difference is their premium.
Frequently asked questions
Which route is cheapest?
Over a multi-year horizon ETFs and tokenized gold usually win on total costs (tight spreads, no storage), at the price of not owning physical metal. Among physical forms, large bars from recognised refiners carry the lowest premium.
Why do bank prices differ from the exchange price?
Banks add a premium for fabrication, logistics and margin, and buy back at a discount. The buy-sell round trip is the main hidden cost: up to tens of percent for jewellery versus single percent for bars.
Is gold taxed?
It depends on the country and the form: some levy VAT on bars, others exempt investment gold; selling may trigger income tax. Check your jurisdiction's rules — we do not provide tax advice.
More guides
Updated: 2026-07-19. This material is informational and not investment advice — see the disclaimer. Data provenance is described in the methodology.