economy
How much do you actually lose when you sell your gold investments?
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TL;DR
- The spot price of gold is not the amount you'll receive when selling; dealers offer a lower bid price.
- Dealer spreads represent the difference between the bid and spot price, an unavoidable selling cost.
- The total loss includes the premium paid when buying gold plus the discount accepted when selling.
- Selling after a price pullback can significantly reduce proceeds compared to recent highs.
- Capital gains taxes, often up to 28% for collectibles like physical gold, can reduce net returns.
- Understanding and managing selling costs like spreads, premiums, and taxes is key to retaining more gains.