Glossary of Bullion Terms: Gold, Silver & Precious Metals Definitions
Your complete A-to-Z reference for bullion, coin, and precious metals terms.
Educational reference only. Definitions are provided for general understanding and are not investment advice.
A | B | C | D | E | F | G | H | K | L | O | P | R | S | T | U | W
A
- Acid Test
- A destructive method for checking gold purity using nitric acid. A small scratch of metal is exposed to acid, and the reaction indicates the karat. The process consumes a tiny amount of the metal being tested.
- Actual Gold Content
- The pure gold present in an item after subtracting all alloy metals. This is the melt value basis, not the item's total weight.
- Ag
- The chemical symbol for silver, from the Latin argentum.
- Allocated Account
- A storage arrangement where a client's bullion is physically separated and identified in a vault, with the client retaining full legal ownership. The metal is not part of the storage provider's own assets.
- Alloy
- A blend of two or more metals. Gold is commonly alloyed with copper, silver, nickel, or zinc to increase hardness and alter color.
- Aqua Regia
- A highly corrosive mixture of nitric acid and hydrochloric acid (1:3 ratio) used by refiners and assayers to dissolve and test gold.
- Arbitrage
- Buying and selling the same asset in different markets simultaneously to profit from price differences between them.
- Argentum
- The Latin word for silver, source of its chemical symbol Ag.
- Ask Price
- The lowest price a seller is currently willing to accept. A buyer purchasing at market will pay the ask. The counterpart to bid price.
- Assay
- A scientific test confirming the purity and weight of a precious metal item. A product sold with an assay certificate carries the assayer's guarantee of its stated content.
- Au
- The chemical symbol for gold, from the Latin aurum.
- Aurum
- The Latin word for gold, source of its chemical symbol Au.
B
- Backwardation
- A market condition where futures prices sit below the current spot price, creating a downward-sloping forward curve. The opposite of contango.
- Bar
- Bullion cast or minted into a rectangular form. A generic term for non-coin precious metal in bar shape.
- Base Metal
- Any non-precious metal, such as copper, zinc, nickel, or lead. These corrode or tarnish more readily than precious metals and are often used in alloys.
- Bear Market
- An extended period of falling prices and negative sentiment. The opposite of a bull market.
- Bid Price
- The highest price a buyer is currently willing to pay. A seller selling at market will receive the bid. The counterpart to ask price.
- Blank / Planchet
- A round metal disc prepared for striking into a coin, before any design has been impressed on it.
- Britannia Silver
- A silver alloy of 95.84% purity, with the remainder typically copper. Not to be confused with Britannia metal, which contains no silver.
- BU (Brilliant Uncirculated)
- A coin that has never entered circulation and retains its full original mint luster.
- Bull Market
- An extended period of rising prices and positive sentiment. The opposite of a bear market.
- Bullion
- Precious metal in bulk form — bars, ingots, or coins — valued primarily for its metal content rather than any collectible premium.
- Bullion Coin
- A coin minted from precious metal and traded near its intrinsic metal value, rather than for rarity or numismatic interest.
C
- Carat
- A unit of weight for gemstones equal to 200 milligrams. Not to be confused with karat, which measures gold purity.
- Cash Market
- A market where commodities trade for immediate delivery and cash settlement. Also called the spot market.
- Cash Price
- The quoted price for immediate delivery in the cash market. Effectively the same as spot price.
- Certified Coin
- A coin that has been authenticated, graded, and sealed by an independent professional grading service.
- Condition
- The physical state of a bar, round, or coin. Common descriptions include new, brilliant uncirculated, proof, and circulated.
- Contango
- A market condition where futures prices sit above the expected spot price, creating an upward-sloping curve. The opposite of backwardation.
- Cu
- The chemical symbol for copper.
- Cull Coin
- A coin so heavily worn or damaged that it carries little value beyond its metal content. Often called a filler.
D
- Deliverable Bar
- A bar meeting the weight, purity, and hallmark standards required for delivery against an exchange-traded contract.
- Denomination
- The face value stated on a coin or banknote by the issuing authority.
- Dore Bullion
- A semi-pure alloy, typically silver containing a meaningful percentage of gold, as produced by mines before refining.
E
- Edge
- The outer rim of a coin, which may be reeded, lettered, or smooth.
- Electrum
- A naturally occurring alloy of gold and silver, sometimes called green gold for its tint.
F
- Face Value
- The nominal value printed on a coin by its issuing mint. For bullion coins this is symbolic and far below the metal value.
- Fine Gold
- Gold of high purity — 24 karat, .999 fine or better.
- Fine Ounce
- A troy ounce of metal meeting a minimum .995 fineness.
- Fine Silver
- Silver of 99.9% purity or higher.
- Fine Weight
- The weight of pure precious metal in an item, excluding alloy content. A 1/10 oz Gold Eagle contains 0.1 troy oz of fine gold.
- Fineness
- Purity expressed in parts per thousand. An American Gold Eagle at .9167 fineness is 91.67% gold.
- Forward Transaction
- A private agreement to buy or sell an asset for delivery at a set future date, outside standardized exchange contracts.
- Futures Contract
- A standardized exchange-traded agreement to buy or sell a commodity at a fixed price on a future date.
G
- German Silver
- A copper-nickel-zinc alloy named for its silvery look. It contains no actual silver.
- GLR (Gold Lease Rate)
- The implied interest rate for borrowing gold, derived from the difference between LIBOR and GOFO.
- GOFO (Gold Forward Offered Rate)
- The rate for swapping gold for dollars, published daily in London.
- Gold/Silver Ratio
- How many ounces of silver equal the price of one ounce of gold. A widely watched market indicator.
- Good Delivery
- The quality standard a bar must meet to be accepted for settlement on a major exchange.
H
- Hallmark
- Stamps on a precious metal item identifying the maker, weight, and purity.
K
- Karat
- A measure of gold purity in 24 parts. Pure gold is 24 karat. Not to be confused with carat, which measures gemstone weight.
- Karat Gold
- Gold alloyed with other metals for strength. US law requires at least 10 karat for an item to be sold as gold jewelry.
L
- LIBOR
- The former London benchmark rate for interbank lending. Now largely replaced but still referenced in legacy formulas.
- London Fixing Price
- Benchmark precious metal prices set in London and used globally for pricing bullion products.
- London Gold (LOCO London)
- The London over-the-counter market for spot gold, the world's primary physical gold trading hub.
O
- Obverse
- The front face of a coin, typically bearing a portrait and the date.
P
- Pd
- The chemical symbol for palladium.
- Pennyweight
- A US unit for weighing gold, equal to 1/20 of a troy ounce.
- Physical Market
- Where actual metal changes hands for cash with immediate delivery. Same as the cash or spot market.
- Precious Metal
- A rare metal with high economic value. The main investment precious metals are gold, silver, platinum, and palladium.
- Premium
- The amount paid above spot price for a bullion product, covering minting, distribution, and dealer margin.
- Proof Coin
- A collector coin struck with polished dies for exceptional detail and mirror-like surfaces.
- Pt
- The chemical symbol for platinum.
- Pure Gold
- Gold of 99.99% purity, or 24 karats.
R
- Reeding
- The grooved pattern on a coin's edge, originally added to deter clipping and counterfeiting.
- Reverse
- The back face of a coin, often showing a national emblem or design.
S
- Spot Price
- The current market price for immediate delivery of a precious metal.
- Spread (Bid-Ask Spread)
- The gap between the bid and ask price. This difference represents the dealer's margin.
T
- Troy Ounce
- The standard weight unit for precious metals, equal to 31.1034768 grams. Abbreviated oz t.
U
- Unallocated Account
- A storage account where a client's metal is not individually segregated. Lower cost but higher counterparty risk than allocated storage.
- Uncirculated Coin
- A coin issued to the public but never used in commerce, often in brilliant uncirculated condition.
W
- White Gold
- A gold alloy blended with white metals like palladium, nickel, or silver, commonly used in jewelry.
This glossary is provided for educational purposes. Precious metals carry risk, and this content is not financial advice. Always do your own research before buying.