Below is a Terminological Glossary of Precious Metals Investments, featuring key terms related to investing in precious metals such as gold and silver, in both bar and coin form. The terms are arranged alphabetically in English to facilitate quick reference. Each entry includes a brief explanation reflecting current market practices.
Ag (Argentum) – The chemical symbol for silver, derived from its Latin name.
Alloy – A combination of two or more metals. Most coins and jewelry are produced from alloys to improve durability and resistance to wear.
Altın – A medieval gold coin from the Ottoman Empire. The term remains in common usage in Turkish as a synonym for gold.
American Eagle – A major United States gold coin first minted between 1792 and 1933. In modern times, the U.S. Mint strikes Gold and Silver American Eagle bullion coins for investors.
Au (Aurum) – The chemical symbol for gold, derived from its Latin name.
Bar – Also called a bullion bar or ingot. A rectangular block of refined metal (gold or silver) that meets internationally recognized standards for weight and purity.
Billon – A historical term referring to an alloy with low silver content (around or below 50%).
Bi-metallic Coin – A coin produced by combining two distinct metal components, typically an inner core and an outer ring.
Britannia – The figure symbolizing Great Britain, usually depicted as a woman with a Corinthian helmet, shield, and trident. Also the name of the UK’s popular gold investment coins.
Bullion – Generally refers to precious metals in the form of bars, ingots, or standardized bullion coins, traded primarily for their metal content rather than any collectible value.
Circulation – The process by which coins are used and exchanged in everyday transactions. Over time, circulating coins can exhibit various degrees of wear.
Coin – A piece of metal, usually circular, with a specific weight and value, recognized as legal tender or used for commemorative or investment purposes.
Commemorative Coin – A coin minted to mark a specific event, anniversary, or individual. These coins often carry collectible or historical value.
Crown – A term used historically for various European gold coins, including some German, Austrian, and Danish issues, as well as the name for certain national currencies like the Danish Krone and the Swedish Krona.
Edge – The outer edge or rim of a coin (sometimes called the “third side”). It can be smooth, reeded, lettered, or patterned, carrying additional design or information.
Electrolytic Gold – Gold refined to an extremely high purity, often 999.99. Commonly used in electronics due to its conductivity.
Electron – A naturally occurring alloy of gold and silver, used for some of the earliest coins (7th century BCE) in Lydia. The proportion of gold typically ranges between 30% and 80%.
ETF (Exchange-Traded Fund) – An investment fund traded on stock exchanges, often tracking the price of a specific precious metal. Investing in a metal-focused ETF does not require holding physical bars or coins.
Florin – A historic gold coin first minted by the city of Florence in 1252. Weighing approximately 3.537 grams, it later influenced various European currencies.
Futures – Financial derivatives in which two parties agree to buy or sell a set amount of a commodity (such as gold or silver) at a specific price on a set future date, commonly used for hedging or speculative purposes.
Good Delivery – A set of standards from the London Bullion Market Association (LBMA) for large gold bars (typically 350–430 troy ounces) with a minimum fineness of 995. Recognized worldwide.
Karat – A measure of gold purity. One karat represents 1/24 part of pure gold in a gold alloy. For example, 24K gold is between 995 and 999.9 parts per thousand pure, while 14K gold is around 585 parts per thousand.
Liquidity – The ease with which an asset (such as a bar or a coin) can be bought or sold in the market without significantly affecting its price.
Matte-Gloss Finish – A combined minting technique producing both matte and glossy surfaces on a coin.
Medal/Medallion – A coin-like piece issued for commemorative, artistic, or award purposes, sometimes privately produced rather than by a government mint.
Mintage – The total number of coins produced for a particular design or issue.
Napoleon – A French gold coin with a face value of 20 francs, introduced under Napoleon I in 1803 and continuing under Napoleon III. Contains 5.8065 g of pure gold and remains a popular historical gold coin in Europe.
Numismatic Value – The collectible value of a coin, which can exceed its bullion value due to rarity, historical importance, design, or condition.
Obverse – The “heads” side or front side of a coin, typically bearing a main design element like a portrait or national emblem.
Piedfort – A coin (often commemorative) struck on a thicker blank than usual, resulting in approximately double the normal weight.
Premium – The amount by which the market price of a bullion coin or bar exceeds the spot price of its underlying metal, reflecting manufacturing costs, distribution, and dealer margins.
Red or Black Gold – Gold alloyed with other metals (for example, copper for a red hue or bismuth for a dark shade) to achieve colored varieties of gold.
Reverse – The “tails” side or back side of a coin, often featuring secondary imagery or inscriptions.
Restrike – Coins struck at a later date using original dies and designs, sometimes bearing the same year as the original.
Sovereign – A British gold coin introduced under King Henry VII (reign 1485–1509). Modern sovereigns weigh 7.9881 grams (with 7.3224 g of pure gold) and continue to be minted as investment coins.
Spot Price – The current market price for the immediate purchase or sale of a commodity, such as gold or silver.
Spread – The difference between the buy price (bid) and sell price (ask) for a commodity. It reflects dealer costs and profit margins.
Troy Ounce – The standard unit of weight used for precious metals, equal to 31.1035 grams. It takes its name from Troyes, a historical trade city in France.
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