A bullion dealer buyback policy is the set of rules that governs how the dealer repurchases metal from customers, at what price relative to spot, on what timeline, and under what verification and shipping terms. It is the single most useful document to read before buying from any dealer, because it defines your exit and therefore your real cost of ownership. This guide explains how buyback pricing actually works, what most policies include and exclude, and the specific questions to ask before you place a first order.
Quick answer
A bullion buyback policy tells you what price you will realistically get when you sell metal back to the dealer, and under what conditions. The typical spread on recognized bullion (Gold Eagles, Maple Leafs, Krugerrands, common bars) is 1 to 4 percent below spot at established online dealers, and 3 to 8 percent below spot at local coin dealers. Ungraded generic rounds, damaged pieces, and off-brand products often fall outside the buyback entirely or receive melt-only pricing. Comparing the buyback policies of two or three dealers before your first purchase is the single most valuable step a bullion buyer can take.
What a bullion dealer buyback policy actually is
A buyback policy is a written or documented commitment by a dealer to repurchase specific bullion products from its customers under specific conditions. It is not a legal obligation the way a stock exchange makes markets, and it is not the same as a guaranteed price. A buyback policy is a business practice, and every dealer defines it differently.
The policy typically answers five questions. Which products the dealer will repurchase. The pricing basis (spot minus a percentage, a posted bid, or an individually quoted price). Who can sell to the dealer (existing customers, anyone, verified account holders). How the metal must be delivered (in person, via insured shipping, in original packaging). And when the seller receives payment (same day, on receipt, after assay).
Some dealers publish the policy in full on their website. Others state a general commitment (“we buy back at competitive prices”) and quote the specifics on request. A dealer with no documented buyback policy at all is a signal to slow down. It does not mean the dealer will refuse to repurchase, but it removes the reference framework you need to plan a sale and to hold the dealer accountable.
How buyback pricing works: posted bids and the spread to spot
Wholesale gold pricing is anchored to the twice-daily London Bullion Market Association (LBMA) gold price, which is the reference used by dealers, refiners, and mints around the world. Silver, platinum, and palladium have similar LBMA reference prices published on London trading days.
A dealer’s buyback price is expressed as a discount to that spot reference. This discount is called the buyback spread. It has two structural components. The dealer’s operating margin (the profit they need to run the business). The market risk they carry between the moment they commit a price and the moment they liquidate the metal into the wholesale channel. How that spread is calculated from the underlying bid-ask difference is covered in the gold bid-ask spread guide.
Larger, more efficient dealers with tight relationships to refiners and market makers carry less risk per transaction and can quote tighter spreads. Smaller dealers with slower inventory turn and less certain wholesale outlets need wider spreads to stay profitable on a per-transaction basis. This is the reason two dealers can quote materially different buyback prices on the same piece.
Typical buyback spreads for recognized bullion in the US market:
| Dealer type | Typical buyback spread on recognized bullion | How the bid is set |
|---|---|---|
| Large online bullion dealer | Spot minus 1% to 4% on Gold Eagles, Maple Leafs, standard bars | Posted bid updated during market hours; locked at time of confirmation |
| Regional coin dealer | Spot minus 3% to 8% on the same recognized products | Individually quoted based on current shop inventory and local demand |
| General local jeweler or pawn shop | Spot minus 15% to 40% and often melt-only regardless of product | Bid based on melt value, not on bullion premium; product identity often ignored |
| Cash-for-gold storefront | Spot minus 25% to 60%; frequently no differentiation by product | Bid framed as flat dollar-per-gram without a spot reference disclosed |
The spread on generic or off-brand bullion is usually wider than the spread on recognized government-issued coins from the US Mint, Royal Canadian Mint, Perth Mint, and other major sovereign mints, because those coins have a global secondary market and instant liquidity. Generic rounds and bars from private mints are still bought back by most dealers, but often at melt-only pricing (no premium recovered on the bullion product itself).
What most buyback policies will and will not repurchase
Reading the fine print of what the policy covers is where most first-time buyers discover that “we buy back what we sell” is a much narrower commitment than it sounds. A close reading of typical policies at major US bullion dealers reveals patterns.
Products most dealers actively buy back at posted or near-spot pricing:
- Gold American Eagles (1 oz, 1/2 oz, 1/4 oz, 1/10 oz)
- Gold American Buffalos (1 oz)
- Gold Canadian Maple Leafs (1 oz and fractional)
- Gold Krugerrands (1 oz and fractional)
- Gold Austrian Philharmonics, Australian Kangaroos, Britannias
- Silver American Eagles (1 oz)
- Silver Canadian Maple Leafs and other recognized sovereign silver coins
- PAMP Suisse, Credit Suisse, Valcambi, Perth Mint bars (1 oz, 10 oz, 1 kilo)
Products that many buyback policies exclude, restrict, or price at melt-only:
- Generic silver rounds and bars from private mints not on the dealer’s accepted list
- Numismatic or graded coins sold at collector premiums (buyback policies at bullion dealers rarely honor the collector premium; sell those through a numismatic dealer)
- Damaged, cleaned, scratched, or cull coins (usually accepted at reduced pricing or refused)
- Coins removed from original mint packaging (accepted but sometimes at slightly reduced pricing)
- Fractional silver bars and rounds under 5 troy ounces from unrecognized mints
- Foreign gold coins outside the recognized list (accepted at melt only, or refused)
- Jewelry, dental gold, and scrap (bullion dealers typically do not buy these; they route to refiners)
- Bullion the customer cannot document as legitimately purchased (some dealers require identification and paperwork for large transactions to comply with anti-money-laundering rules)
These exclusions matter at the moment of purchase. A round from an obscure private mint at a five-dollar-over-spot premium looks attractive against a Silver Eagle at three dollars over. On the sell side, the Eagle recovers its premium in the dealer’s posted bid. The round often does not, and the effective premium paid is lost.
Verification, shipping, and payment timing
Once the buyback price is agreed, the mechanics of the transaction determine how much of that price actually reaches your bank account. Three parts of the policy carry real dollar impact.
Verification and assay. Established dealers with an inventory and testing infrastructure verify recognized bullion visually and by weight, and complete the transaction quickly. Non-recognized products or larger transactions may trigger an assay (typically XRF, occasionally acid or fire assay for high-value items), which the dealer may charge for or which may reduce the quoted price if the assay reveals composition issues. Ask before you ship whether an assay applies to your specific product mix.
Shipping and insurance. Most online buyback transactions require the customer to ship the metal to the dealer via a specified carrier and service level. USPS Registered Mail is the standard choice for insured bullion shipments and is accepted by most US bullion dealers. Insurance limits vary by carrier and service; verify the coverage cap matches your shipment value and that the dealer’s policy specifies what happens if the package is lost or damaged in transit. Some dealers reimburse the shipping cost above a purchase threshold. Others expect the seller to cover it.
Price lock timing. Bullion prices move continuously during market hours. Dealers typically lock the buyback price at the moment you confirm a sale, either online through your dealer account or on a recorded phone call. The lock is usually valid for a defined shipping window (commonly 5 to 10 business days). If the metal does not arrive within the window, the price may be re-quoted at the market at time of receipt, which can be higher or lower than your original lock. Confirm the lock policy in writing before shipping.
Payment method and settlement time. Common payment options are business check by mail, ACH transfer, wire transfer, and (increasingly rare) PayPal. Timing ranges from same-business-day payment on receipt (some large online dealers) to 5 to 10 business days (typical for mail-in shipments and check settlement). Wire transfers are usually fastest for larger amounts but may carry a fee. Payment by check is slower and creates a small mail float. If cash flow timing matters, confirm the payment method and expected settlement date in writing before you ship.
How to compare buyback policies before you buy
Choosing a dealer based on the lowest sell-side premium alone is a false economy if the dealer’s buyback spread is proportionally wider on the way out. The round-trip cost of ownership (what you pay above spot on entry plus what you give up below spot on exit) is the real comparison.
A practical process before your first purchase:
Step 1: Read the buyback policy in full on the dealer’s website. Look for the products they buy back, the pricing basis (posted bid or individually quoted), the shipping requirements, and the payment timeline. If any of these are missing, contact the dealer and ask for the specifics in writing before you commit.
Step 2: Ask for a live buyback quote on the exact products you intend to buy. A dealer whose live bid on a Gold Eagle is 1.5 percent below spot when you ask is providing a data point that a marketing page cannot. Compare two or three dealers on the same day for a clean read of the spread differential.
Step 3: Confirm what happens with non-recognized products. If you are considering generic rounds or bars from a mint you have not heard of, ask the dealer specifically whether those products are on their buyback list and at what price. A “not on our list” answer is a real cost that only surfaces at exit.
Step 4: Read the shipping and price-lock terms. Understand who pays for shipping, what the insurance cap is, how long the price lock lasts, and what happens if the shipment arrives late.
Step 5: Check the dealer’s reputation and complaint history. Look up the Better Business Bureau profile for accreditation status and complaint volume. Review FINRA investor alerts on precious metals fraud and CFTC customer advisories for warning signs specific to precious metals sellers.
Buyback policy comparison checklist
Use this checklist when reviewing a dealer’s policy or asking questions before your first purchase. Each line is a specific data point that determines the real cost of ownership.
| Comparison point | What to verify | Red flag |
|---|---|---|
| Products bought back | Complete list, or explicit “products we sold you” | Vague “we buy competitive bullion” |
| Pricing basis | Posted bid updated during market hours, or documented spread to spot | “Call for quote” with no reference disclosed |
| Typical spread on Gold Eagles | Compare against two other dealers same day | More than 5% below spot at an online dealer |
| Generic round policy | Named brands accepted, spread stated | “Case by case” without pricing basis |
| Damaged coin policy | Stated reduction or explicit acceptance | Silent (assume rejected or heavy discount) |
| Shipping requirement | Named carrier and service level, insurance minimum | Customer bears full loss above vague cap |
| Who pays for shipping | Reimbursement threshold, if any, stated in policy | Silent (assume seller pays) |
| Price lock duration | Business days, and re-quote behavior stated | Lock voidable at dealer discretion |
| Payment method | Check, ACH, wire; timeline for each | Delayed payment or payment tied to further dealer approval |
| Settlement time | Same-day, 3-5 days, or longer, with contingencies stated | Open-ended timeline |
| Assay policy | When it applies, who pays, and impact on quote | Assay reserved at dealer discretion with no disclosed cost |
| Documentation | Confirmation, receipt, and transaction record retained | No written record of the sale |
A dealer whose policy is clear on all twelve points is materially different from one whose policy is vague on half. The clarity itself is a signal of how the dealer treats customers on the sell side.
When you should sell to a source other than your original dealer
Reselling to your original dealer is convenient because the products are pre-verified, the process is documented, and payment usually settles faster. It is not always the best financial outcome. Cases where a second opinion is worth the time: Gold IRA holders who bought through Augusta should read the Augusta Precious Metals buyback guide before initiating a liquidation.
Larger transactions. On a sale worth more than $10,000 or $20,000 in metal, a 1 percent difference in the buyback spread is $100 to $200. Getting a competing quote from a second reputable online dealer takes 15 minutes and can pay for itself many times over.
Graded or numismatic coins. A bullion dealer’s buyback typically ignores the collector premium. A specialized numismatic dealer or an auction listing may recover value that a bullion dealer will not. This applies to any coin holding a graded slab from PCGS or NGC where the collector value materially exceeds melt.
Off-brand generic bullion. If your original dealer will not buy back generic rounds or bars, another dealer may. Refiners are the last-resort buyer and typically pay closest to melt for generics, minus a refining charge.
Local buyers for immediate cash. If time-to-cash matters more than the last one or two percent of price, a local coin dealer transaction settles the same day. The spread is wider, but the settlement is immediate and there is no shipping risk.
The Federal Trade Commission’s consumer guidance on selling gold, silver, and jewelry explicitly reminds sellers to compare multiple buyers before selecting one. The same principle applies to bullion sold from a personal holding.
Individual sellers comparing buyback spreads without a dealer relationship can also request quotes from multiple verified buyers through Goldiew’s free service on Sell Gold, which returns sealed offers from up to 15 buyers, and can browse dealer listings on the Marketplace.
Compare dealer buyback offers without picking up the phone
Getting three or more real buyback quotes is the single most reliable way to improve the price you receive when selling bullion. Goldiew’s free Sell Gold service lets you post one request and receive sealed offers from up to fifteen verified buyers, which you can compare on a single screen. There is no obligation to accept any offer and the request takes under five minutes to post. For an ongoing view of local and online dealers, the Marketplace lists profiles and community reviews from other sellers.
Frequently asked questions
What is a typical bullion buyback spread on Gold American Eagles?
At established US online bullion dealers, the buyback price on a 1 oz Gold American Eagle typically sits between 1 percent and 4 percent below the LBMA spot gold price during market hours. Local coin dealers commonly quote 3 to 8 percent below spot for the same coin. General jewelers and pawn shops often quote materially wider spreads because they buy on melt value only. Confirm the current bid on the dealer’s own website or by phone before shipping.
Does the dealer I bought from have to buy the metal back?
No. A bullion dealer’s buyback policy is a business practice, not a legal obligation. Reputable dealers publish and follow their policies consistently because doing so is a competitive advantage. A dealer that changes terms without notice or refuses documented buyback commitments raises the question of whether other business practices are similarly variable. Check the Better Business Bureau profile for any dealer whose buyback behavior does not match their published policy.
Should I buy generic silver rounds or stick to Silver Eagles?
The premium on generic silver rounds is usually one to three dollars per ounce lower than on Silver American Eagles at the moment of purchase. On the sell side, most major dealers pay full posted bids on Eagles and reduced or melt-only pricing on generic rounds. The round-trip cost of ownership on Eagles is often smaller than on generics for that reason. If you plan to hold for decades and sell into a market with wider generic acceptance, generics can be competitive. If liquidity and clean buyback pricing matter, Eagles are usually the better choice.
How should I ship bullion to a dealer for buyback?
USPS Registered Mail is the standard shipping method for insured bullion in the US and is accepted by most major bullion dealers. Confirm the dealer’s specific shipping requirements before shipping. Package the metal so it does not shift or rattle, seal the package clearly, and retain all tracking and insurance documentation until the dealer confirms receipt and payment. If the shipment value exceeds the carrier’s insurance cap, split the shipment or use a specialized precious metals shipping service.
When do I get paid after the dealer receives my metal?
Timing varies by dealer and payment method. Wire transfers commonly settle within one to two business days of the dealer confirming receipt. ACH transfers typically settle within two to three business days. Business checks by mail add mail time on top of the dealer’s processing time and can extend total settlement to seven to fourteen days. Confirm the dealer’s stated settlement timeline in writing before shipping, and pick the payment method that matches your cash flow needs.
What happens if the price of gold moves between the day I ship and the day the dealer receives my metal?
Most reputable dealers lock the buyback price at the moment you confirm the sale, usually for a defined shipping window of 5 to 10 business days. If the metal arrives within the window, the locked price is honored regardless of intervening market movement. If the shipment is late or the dealer’s policy does not include a lock, the price may be re-quoted at the market when the metal is received. Always confirm the lock terms in writing before shipping.
Will a bullion dealer buy back graded numismatic coins?
Most bullion dealers focus on melt-plus-premium bullion products and do not honor the collector premium on numismatic or graded coins. A slabbed PCGS or NGC coin at a strong grade may be worth materially more to a numismatic specialist or an auction platform than to a bullion buyback desk. For any graded coin where the collector premium is significant, request a valuation from a numismatic dealer before selling to a bullion dealer at melt-plus-premium.
Are there tax reporting requirements when I sell bullion to a dealer?
Some bullion sales trigger a Form 1099-B filing requirement for the dealer, depending on the product type and quantity sold. The IRS Instructions for Form 1099-B govern these thresholds. Any taxable gain on the sale is reported by the seller on Schedule D and Form 8949 regardless of whether the dealer files a 1099-B. Consult a tax professional for the treatment specific to your holdings, since basis, holding period, and product classification all affect the outcome.
Can I ask a dealer to beat a competing buyback quote?
Yes, and doing so is common practice among informed bullion sellers. If a competing dealer has quoted a materially higher buyback price on the same product on the same day, present the documented quote and ask if the original dealer will match or improve. Some will, especially on larger transactions or from long-standing customer accounts. Others will not, in which case the competing quote defines the fair market bid for that day and the sale should route accordingly.
Sources
- London Bullion Market Association. LBMA Gold Price and Silver Price. Published on London trading days.
- Federal Trade Commission Consumer Advice. Selling Gold, Silver, and Jewelry.
- Federal Trade Commission. Guides for the Jewelry, Precious Metals, and Pewter Industries. 16 CFR Part 23.
- Financial Industry Regulatory Authority. Precious Metals Fraud Investor Insight.
- Commodity Futures Trading Commission. Customer Advisory on Precious Metals Fraud.
- U.S. Securities and Exchange Commission. Investor.gov. Precious Metals.
- United States Postal Service. Registered Mail and Insurance Extra Services.
- Internal Revenue Service. Instructions for Form 1099-B, Proceeds From Broker and Barter Exchange Transactions.
- Better Business Bureau. Business Profiles and Complaint Records.