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Precious Metals Glossary

Every term you need to buy, sell, and store gold, silver, and platinum with confidence — defined clearly, without the jargon.

Pricing

Spot Price

The current market price for immediate delivery of a precious metal.

Premium Over Spot

The markup above the raw metal's spot price that dealers charge for finished bullion products.

Bid-Ask Spread

The difference between the price a dealer will buy (bid) and sell (ask) a bullion product.

Weights & Measures

Troy Ounce

The standard unit of weight for precious metals, equal to 31.1035 grams.

Purity & Composition

Fineness

The proportion of pure metal in an alloy, expressed as parts per thousand.

Karat

A measure of gold purity where 24 karats equals 100% pure gold.

Basics

Bullion

Physical gold, silver, platinum, or palladium in bar or coin form, valued primarily by metal content.

Legal Tender Face Value

The nominal dollar value stamped on government-issued bullion coins, far below their actual metal value.

Coin Types

Numismatic Coins

Collectible coins valued by rarity, grade, and historical significance rather than metal content alone.

Junk Silver

Pre-1965 US silver coins with 90% silver content, traded in bulk by face value as a low-premium silver source.

Proof Coin

A specially struck collectible coin made with polished dies on hand-selected planchets, producing a mirror-like finish.

Market Analysis

Gold-Silver Ratio

The number of silver ounces needed to buy one ounce of gold, used as a relative valuation signal.

Basel III and Gold

International banking regulations that reclassified physical gold as a Tier 1 zero-risk-weight asset in 2021.

Authentication

Assay Certificate

An official document verifying the weight, purity, and authenticity of a precious metal product.

Products

American Gold Eagle

The official US gold bullion coin, minted since 1986, in 22-karat gold (.9167 fine).

Monster Box

A government mint's standard case of silver coins, typically holding 500 one-ounce coins in 25 tubes of 20.

Investing

Gold IRA

A self-directed IRA that holds physical gold and other approved precious metals as tax-advantaged retirement assets.

Storage

Allocated Storage

A precious metals storage arrangement where specific, serialized bars or coins are assigned exclusively to one client.

Trading

OTC Desk

A private trading desk for large, negotiated precious metals transactions above standard retail thresholds.

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