Knowledge base
Bid and ask price explained
What are the bid and ask prices of gold and silver, why do they differ, and which one do you use for buying and selling?
Two prices at the same time
The precious metals market always has two prices. The bid price is what the market pays you for gold or silver. The ask price (also called offer) is what the market sells it for. The ask price is always slightly higher; the difference is called the spread.
| Metal (per gram) | Bid | Ask |
|---|---|---|
| Gold 24 carat | €115.08 | €115.11 |
| Silver 999 | €1.545 | €1.547 |
Which price do you use for what?
- Selling (your customer buys from you): start from the ask price and add your markup.
- Buying back (you buy from your customer): start from the bid price with a payout percentage.
In ZilverGoudPrijs you choose per product whether the price is based on the bid or the ask price; the buy-back calculator uses the bid price by default.
Why is the spread sometimes wider?
When trading is thin, such as at night, at weekends or during market turmoil, the spread widens. Platinum and palladium usually have a wider spread than gold because their markets are smaller.