Glossary of Terms

Storage where specific bars or coins are assigned to an individual owner and kept separate from other holdings.

The price at which a dealer is willing to sell precious metals to you. Also called the offer price.

A test to determine the purity and composition of a precious metal. Assay certificates verify authenticity.

The price a dealer is willing to pay to buy precious metals from you.

A coin that has never been in circulation, retaining its original mint luster. Abbreviated as BU.

Precious metals in bulk form, valued by weight and purity rather than face value. Includes bars, rounds, and coins.

An investment strategy of buying a fixed dollar amount of precious metals at regular intervals regardless of price.

The legal tender value stamped on a coin, often much lower than its actual metal value.

The purity of a precious metal expressed as parts per thousand. For example, .9999 fine gold is 99.99% pure gold.

Bars that meet the specifications set by the London Bullion Market Association (LBMA) for trading.

An official mark stamped on precious metals indicating purity, origin, and manufacturer.

Precious metals that meet IRS requirements for inclusion in a self-directed Individual Retirement Account.

The value of a coin or bar based solely on its precious metal content at current spot prices.

Coins valued for their rarity, historical significance, or collectibility beyond their metal content.

The amount charged above the spot price of a precious metal. Premiums cover minting costs, dealer margins, and market demand factors.

A specially minted coin with a mirror-like finish, produced for collectors using polished dies.

The current market price at which a precious metal can be bought or sold for immediate delivery. Spot prices fluctuate throughout the trading day based on supply and demand.

The difference between the bid and ask prices. A narrower spread generally indicates a more liquid market.

The standard unit of measurement for precious metals, equal to 31.1035 grams. Different from a regular ounce (28.35 grams).

Storage where the investor owns a share of a pool of metal rather than specific bars or coins.