Glossary of Gold

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.