Break-Even Calculator
Straight answer
Because you buy above spot and sell below it, the metal price has to rise before you break even. Enter the premium you paid and the spread a dealer takes on buy-back, and this tool shows how far spot must climb just to get your money back. For typical bullion that’s often 8–15%; for high-premium “rare” coins it can be 30%+.
This is the cost almost nobody mentions at the point of sale. The round trip — buy premium plus sell spread, plus any storage — is a hurdle the price must clear before a single dollar of profit appears. Seeing it up front changes how you buy.
Set storage to 0 if you store it yourself. “Spot must rise” is the percentage gain in the metal price needed before you’d recover your full outlay at sale.
How break-even works
Say you pay a 6% premium. Your cost is 106% of spot. If a dealer buys back at 3% below spot, they pay 97% of the prevailing spot. For your sale proceeds to match your outlay, spot has to rise enough that 97% of the new price equals 106% of the old — about a 9.3% gain. Add storage over several years and the hurdle grows.
Why this favors low premiums and long holds
The lower your buy premium and the tighter the dealer's spread, the smaller the climb you need. And because the round-trip cost is fixed, holding longer spreads it across more potential price appreciation. Flipping bullion quickly almost never works — the spread eats the move. This is the arithmetic behind when not to buy.
Keep the round trip in view
Use the premium calculator to nail down your buy-side cost, and read selling gold and silver for how to get a fair buy-back. Recognized bullion from a reputable dealer carries the tightest spreads.
How much does gold have to go up before I break even?
It depends on your buy premium and the dealer's buy-back spread. For low-premium gold the answer is often under 10%; for silver or sovereign coins, 10–20%; for high-premium "collectible" coins it can exceed 30%.
Does storage really change the break-even point?
Yes, if you pay for it. Depository storage of around 0.5–1% a year compounds into the hurdle the longer you hold. Storing metal yourself removes that cost but adds security and insurance considerations.
What's a "dealer buy-back spread"?
It's how far below spot a dealer pays when buying metal back from you. Tight, transparent buy-back spreads are a mark of a reputable dealer; a wide or unpublished spread is a cost you'll feel at sale.