A Glossary of Gold Terms
Assay – A test to determine the metallic content of a coin bar.
Bid/Ask – Bid is the price offered by a dealer. Ask is the price a dealer is willing to take in order to effect the sale of a coin.
Bullion – Precious metal in negotiable or trading shape, such as a wafer, bar, ingot, or sometimes a coin.
Bullion Coin – A legal tender coin whose market price depends on its gold content, rather than its rarity or face value.
Face Value – The value of a legal tender coin as stamped on the unit. A 1-oz. Gold American Eagle has a face value of $50.
Gold Standard – The term to designate the monetary standard of a country when all the paper money it issues is backed by a gold reserve.
Gram – A unit of weight measurement equivalent to .0322 Troy Ounces.
Karat – Measurement of purity used in showing the fineness of gold, scaled 1 to 24. One karat is 1/24 pure gold.
Legal Tender – Coin or currency identified by a government to be acceptable in the discharge of debts.
Liquid Market – A market where selling and buying can be accomplished with ease.
Premium – The price of a coin over the value of its actual gold content.
Spot – Used in commodities trading to denote something which can be delivered readily. The spot price is the price required for immediate settlement.
Spread – The difference between the Bid and Ask prices.
Troy Ounce – A unit weight equal to about 1.1 ordinary ounces. The word ounce when applied to gold, always refers to troy ounces.
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