Premium, Spread And Break-Even
The premium is what you pay above the value of the gold itself at the spot price. It covers minting or refining, the dealer's costs and margin. Small bars and coins usually carry a higher premium per gram than large bars.
The buy-back spread is the gap between what you pay and what the same dealer would pay you back for the same item today. If you bought and sold on the same day, that is what you would lose.
The rise to break even is how far the spot price has to climb before the buy-back price covers what you paid. A 5% spread needs more than a 5% rise, because the buy-back starts from a lower base. Our guide to gold premiums walks through the maths.