Relevant Terms and Descriptions
- Ask Price – The selling price a dealer offers.
- Bid Price – The price a dealer pays for bullion or coins.
- Bullion – Precious metals like platinum, gold or silver in the form of bars or other storage shapes. Bullion coins are made of these metals, too.
- Collector Coin, Historic Coin, or Numismatic Coin – A coin whose value is based on rarity, demand, condition, and mintage; in fact, it may be worth more than its bullion value.
- Melt Value – The basic intrinsic bullion value of a coin if it were melted and sold.
- Premium – The amount by which the market value of a gold coin or bar exceeds the actual value of its gold content. The seller can recover part of the premium at resale.
- Spot Price – The current price in the physical market for immediate delivery of gold; sometimes called the cash price.
- Spread – The difference between the buying price and the selling price.
- Troy Ounce – The unit of weight for precious metals. One troy ounce equals 480 grains, 1.09711 ounces, or 31.103 grams.