|
|
| Assay |
To test a metal for purity. |
| Bid / Ask |
Bid or buy is the price a dealer will pay
for gold bullion coins. Ask or sell is the selling price offered by a dealer. (See
Spread.) |
| Bullion |
Uncoined precious metals usually in the
form of bars, wafers or ingots. |
| Bullion Coin |
A legal tender coin whose market price
depends on its gold content, rather than its rarity or face value. |
| Cash Price |
Price required for immediate settlement
since most gold purchases are cash transactions. Also known as "spot price." |
| Face Value |
The nominal value given to legal
tender coin or currency (i.e., a 1-oz gold American Eagle has a face value of $50). |
| Four Nines |
Gold with a fineness of .9999 (the
purest gold available). |
| Karat |
Unit of fineness, scaled from one to 24.
24-karat gold (or pure gold) has at least 999 parts pure gold per thousand; 18-karat has
750, etc. |
| Legal Tender |
The coin or currency which the
monetary authority of a country declares to be universally acceptable therein as a medium
of exchange; acceptable in the discharge of debts. |
| Liquidity |
The quality of being readily
convertible into cash. |
| London Fix |
Twice-daily bidding session
in London of the five major gold traders, at which the price is fixed or set. The London
Fix is the basis for many gold contracts worldwide. read history of the U.K. fix |
| Numismatic |
Coins which are valued for their rarity,
condition and beauty beyond the value of their gold content. Generally, premiums for
numismatic coins are higher than for bullion coins. |
| Premium |
In gold coinage, the amount by which the
market value of a gold coin exceeds the actual spot value of its gold content. Part of the
premium is recovered by the seller at resale. |
| Spread |
Represents the difference
between Bid and Ask prices. |
| Troy Ounce |
A unit of weight, equal to about 1.1
avoirdupois (ordinary) ounces. The word ounce when applied to gold, always refers to troy
ounces. |
|
|
