Guide
Physical premiums vs ETF fees.
Physical metal costs you up front, through the premium when you buy and the spread when you sell. An ETF costs you a little every year. Which is cheaper depends on how long you hold, and for most holding periods the ETF's fees add up to less.
Updated October 26, 2026
The round trip
The cost of owning physical metal is the gap between what you pay a dealer and what a dealer pays you when you sell, called the round trip. As an illustration, suppose a dealer prices like this, worked out at Kitco prices on October 26, 2026:
| Product | Example dealer prices | Round trip | ETF yearly fees | Years until the ETF costs as much |
|---|---|---|---|---|
| Gold coins and bars | ask + 3% to 5%; buys back at 94% to 97% of the bid | 5.9% to 10.5% | 0.10% to 0.40% | about 15 to 105 years |
| Silver Eagles and sovereign coins | ask + $3 to $5 an ounce; buys back at 92% to 96% of the bid | 9.5% to 16.2% | 0.30% to 0.50% | about 19 to 54 years |
| Generic silver bars and rounds | ask + $1 to $3 an ounce; buys back at 88% to 93% of the bid | 9.1% to 17.0% | 0.30% to 0.50% | about 18 to 57 years |
| Platinum coins and bars | ask + 3% to 5%; buys back at 92% to 96% of the bid | 7.4% to 13.0% | 0.60% | about 12 to 22 years |
These are example prices, not a quote; dealers' prices vary, so ask yours for both its selling price and its buy-back price. Round trip = 1 − (buy-back price ÷ purchase price). Years = round trip ÷ yearly fee, ignoring brokerage costs, the ETF's own trading spread, storage and insurance for physical metal, and price changes. Silver premiums are fixed dollars per ounce, so their percentage changes with the price.
What the numbers leave out
- Storage and insurance: free if you keep metal at home (with the risks that brings), a yearly cost in a bank box or depository, which shortens the time before physical costs more.
- Brokerage and spreads: ETF trades cost commissions and a small bid-ask spread; frequent trading adds up.
- What you own: with an ETF you hold shares in a trust that holds the metal, with the custodian and fund risks its filings describe; with coins and bars you hold the metal. See physical gold vs ETFs and physical silver vs ETFs.
- Taxes: long-term gains on both are collectibles gains, taxed at no more than 28%.
We're a dealer in physical metal; nothing here is investment advice. Fund fees are from each fund's filings.
Sources
- Fund fees from each fund's annual report or prospectus on SEC EDGAR; see the physical vs ETF guides for links.
- Kitco bid and ask prices on the date shown; the dealer prices are examples.
- CFTC, precious metals investor brochure.
Guides: Physical gold vs ETFs · Physical silver vs ETFs · Physical platinum vs ETFs · Physical palladium vs ETFs · How to store it · All guides
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