Why Do Gold Buying and Selling Prices Differ?

The first thing anyone investing in gold or buying jewellery notices, on screens or in jewellers' windows, is two different prices. The amount you pay when buying gold and the amount you are paid when selling are never the same. This gap, known as the spread (in Turkish, makas), is a natural part of how the market works. It is not unique to gold; it is a basic trading rule in many financial products, from currencies to shares.

To manage your savings well and avoid surprises when buying and selling, you need to know where this gap comes from. Many factors set its width, from the global ounce price and the domestic dollar rate to the physical form of the gold and craftsmanship costs.

Wholesale prices versus the jeweller's window

The gold prices you see in the news or on financial websites are mostly indicative wholesale prices. In wholesale trading, where large amounts change hands, the spread is very narrow.

A jeweller adds their own operating costs to the wholesale price. Displaying products, keeping them secure and holding cash in the till so they can buy a customer's gold at any time are part of these costs. The gap between wholesale and window prices is a natural result of this physical service.

Global markets and the ounce price

The raw price of gold is set in US dollars per ounce on international markets. There is always a gap between buying and selling prices on gold markets worldwide too. This base gap is combined with various operating costs by the time it reaches jewellers' windows in Turkey.

Economic uncertainty on international markets or interest rate decisions by major central banks cause the ounce price to fluctuate. When prices change very fast, everyone in the market wants to protect themselves against sudden moves. This protective reflex widens the gap between buying and selling prices. When markets calm down, it narrows again.

The dollar rate and domestic dynamics

Two main factors are used to calculate the gram gold price in Turkey: the dollar value of the ounce and the dollar exchange rate. This means gold prices in Turkey depend on two separate factors. Swings in the dollar rate are reflected directly in gold prices.

If demand for physical gold is very high, supply and demand push selling prices up and the spread can widen. You can follow intraday movements and current buying and selling prices on our market page.

How craftsmanship affects the spread

The most visible factor behind the spread in jewellers' windows is the craftsmanship on the product. The more handwork and design a gold item goes through, the higher its cost. When you buy a necklace or a designer bangle, you pay for this production process as well as the value of the gold.

When you want to sell, the item is valued on the pure gold it contains. Craftsmanship and design value are not counted. That is why the spread looks high on crafted jewellery. As we note in what to check when buying gold, if your aim is saving, choosing low-craftsmanship products protects your budget.

Physical versus book-entry gold spreads

Another thing gold investors often compare is the spread on bank screens versus in jewellers' windows. Banks usually apply a narrower spread when markets are open, and a wider one in the evenings and at weekends when markets are closed.

With physical gold, costs such as minting, packaging, transport and security are built into the price. Even so, jewellers' spreads on standard coins and packaged gram gold are usually competitive.

When does the spread suddenly widen?

In normal market conditions the spread stays within a certain range. But in some situations it can widen markedly in a short time.

When an unexpected geopolitical event occurs, the gold price moves very fast. Because no one knows where the price will settle, market participants widen the spread to reduce risk. When major interest rate decisions or inflation data are announced, prices can also change direction several times in a short period, and the spread opens up temporarily.

The same happens when demand for physical gold suddenly rises. Especially when demand for quarter coins and gram gold outstrips supply, the selling price can rise faster than the buying price and the gap grows. At such times, it is worth checking current prices on our market page before you trade.

How to protect yourself from the spread

To be affected as little as possible by the spread, a few basic rules are enough. The first is to think of saving in gold as a long-term matter. Buying and selling at short intervals is usually not profitable because of the spread.

The second is to choose the right product. If your aim is simply to save, choose standard products such as gram gold, quarter or half coins, or the Ata Lira. To calculate today's value of past purchases, use the calculators on our tools page.

Spreads by type of gold

To browse our products, see our catalogue. To visit our store, find our address on the contact page.

Frequently Asked Questions

At what time of day is the gold spread narrowest?

The spread is usually narrowest during weekday daytime hours when markets are open. After markets close and at weekends, trading volume falls and the gap usually widens.

Do jewellers set buying and selling prices themselves?

Jewellers do not set prices arbitrarily. Base prices come live from the wholesale market. Jewellers trade by adding a margin that covers their operating costs.

Do you never lose money selling low-craftsmanship gold?

The loss on low-craftsmanship products is small. But since there is always a gap between buying and selling, you cannot sell at the same price the moment you buy. The market value of gold needs to rise a little to cover your cost.

Why does the gold price online look different from the jeweller's price?

The prices you see online or in the news are usually wholesale fine gold figures. Once costs such as producing, packaging, transporting and securing physical gold are added, the price in the jeweller's window differs from these figures.