The attractive optical properties of metallic nanoparticles include the optically interesting but surprisingly not well understood dichroic effect, defined in this research as when particle colloids display different colours in transmitted and reflected light. Here we use a systematic experimental approach supplemented by theoretical Mie theory analysis to study the origin of this effect. The CloudSpec spectrophotometer has been utilised to produce quantitative scattering and absorption spectra for monodisperse spherical gold nanoparticles, allowing precise links to be made between the optical spectra and the colours observed. The source of the dichroic effect has been conclusively linked to particle size with no special particle shapes or size distributions required. These results experimentally demonstrate the relationship between particle size and the ratio of scattering to absorption predicted by Mie theory, which has important implications for users of Mie theory calculations.