Why the Spot Price Is Not the Retail Price of Gold and Silver Bars

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The spot price of gold and silver is the current market price at which these metals are traded globally, typically per troy ounce and quoted in U.S. dollars. However, this is not the same as the price you pay when buying physical gold or silver in the form of cast or minted bars.

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Key differences in pricing:

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🔹 Manufacturing costs – Producing bars or coins involves melting, casting, or minting, which adds cost.
🔹 Premium (markup) – Dealers add a margin above the spot price for profit.
🔹 VAT/Sales tax – In many countries, such as the Netherlands, 21% VAT applies to silver. Gold is often VAT-exempt under certain conditions.
🔹 Shipping & insurance – Physical delivery includes logistical and security expenses.

As a result, the retail price of a gold or silver bar is always higher than the spot price shown in charts.