Gold & Gold Market Term Glossary

ASSAY		To test a metal for purity.
BID/ASK		"Bid" or "buy" is the price a dealer is pre-pared to pay for gold bullion. "Ask" or "sell" is the price offered by the seller. (See also definition of "Spread" below.)
BULLION		Refined gold that is at least 99.5% pure, 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.
FACE VALUE		The nominal value given to legal tender coin or currency (for example a 1-oz. Gold American Eagle coin has a face value of $50).
FINE, FINENESS, FINE GOLD		The quantity of pure gold contained in 1,000 parts of an alloy. A normal "good delivery bar" of 0.995 fineness contains 995 parts of gold and 5 parts of another metal. Gold is produced in bars up to a purity of 999.9 (often referred to as "four nines").
FUTURES CONTRACT		A firm commitment to make or accept delivery of a specified quantity and quality of a commodity on a specific date in the future.
GOLD STANDARD		A monetary system based on convertibility into gold; paper money backed and interchangeable with gold.
GRAIN		One of the earliest weight units used for measuring gold. One grain is equivalent to 0.0648 grams.
HALLMARK		A mark, or marks, which indicates the producer of a gold bar and its number, fineness, etc.
KARAT		Unit of fineness; scaled from one to twenty four. 24 karat gold is considered pure gold having at least 999 parts pure gold per thousand parts 18-karat has 750 parts pure gold and 250 parts alloy (non-gold) 750:250 = 1,000 Parts Total.
KILO BAR		A bar weighing one kilogram. This would be approximately 32.1507 troy ounces.
LEGAL TENDER		The coin or currency which the national monetary authority declares to be universally acceptable as a medium of exchange; acceptable for instance in the discharge of debts.
LIQUIDITY		The quality possessed by a financial instrument of being readily convertible into cash without significant loss of value.
LONDON FIX		The twice-daily bidding session in London of the five major gold traders, at which the gold price is fixed or set. The London Fix provides the basis for many gold contracts worldwide.
NUMISMATIC		Coins that are valued for their rarity, condition and beauty beyond the intrinsic value of their gold content. Generally, premiums for numismatic coins are higher than for bullion coins.
OPTION		The right, (not the obligation), to buy or sell a commodity or a financial security on a specified date in the future.
PENNYWEIGHT		An American unit of weight for gold. Twenty pennyweights equal one ounce.
PREMIUM		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.
RESTRIKE		A modern replica of previously issued coins. Governments and their mints can choose to "restrike" a previous issue rather than introduce new coinage.
SPOT PRICE		Sometimes referred to as the cash price. The current price in the physical market for immediate delivery of gold.
SPREAD		The difference between Bid (the price a buyer is prepared to pay for gold) and Ask (the price a seller offers) prices.
TROY OUNCE		A unit of weight, equal to about 1.1 avoirdupois (ordinary) ounces. The word ounce when applied to gold, refers to a troy ounce.

Casanova's Metal Detector Center

Est. 1930

CASANOVA'S™

TRUSTED FAMILY BUSINESS SINCE 1930

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Casanova's Metal Detector Center

Est. 1930

CASANOVA'S™

TRUSTED FAMILY BUSINESS SINCE 1930

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