Glossary
GLOSSARY
A
Acid Test
An acid test determines the fineness of Gold with aqua regia, a mixture of nitric acid and hydrochloric acid.
American Eagle
American eagles are bullion products produced by the U.S. Mint. They are available in gold, silver, platinum and palladium.
Ask
The price a dealer offers to sell precious metals.
Assay
A test to determine the weight and purity of precious metals.
Ag
The elemental symbol for Silver.
Au
The elemental symbol for Gold.
B
Bag Marks
Imperfections and/or marks on coins that can occur during shipment if/when items are stored in canvas bags. Can also refer to coins that are mass produced and have come into contact with other coins during the minting process itself.
Bank Wire
An electronic transfer of funds from one financial institution or bank to another.
Bar
Precious metals are often formed into this shape to aid in the convenience of storing and shipping.
Bear Market
Investment markets, such as precious metals markets or stock markets, in which prices are currently or expected to soon be in decline.
Bid
The price a dealer offers to buy precious metals.
Blank Planchet
A metal ‘blank’ or disc made for coinage and/or bullion that has not yet been struck by a die to produce the obverse (front), reverse (back) or edge design.
BU (Brillian Uncirculated)
A coin in new condition that shows the original luster and no signs of wear. Coins in BU condition may have slight handling marks or other small imperfections.
Bull Market
Investment markets, such as precious metals markets or stock markets, in which prices are currently or expected to soon be rising
Bullion
Precious metals coins such as gold, silver, platinum and palladium, that closely follow spot prices and have very little or no numismatic value. Bullion can also refer to precious metals in the shape of bars and ingots.
Burnishing, Burnished
A process of polishing that involves blank planchets placed in a spinning drum containing polishing media prior to being struck by a die.
Business Strike
The method of manufacture that is used by mints in producing coins for everyday use. It is a different method of production than that which is used to produce Proof coins.
Bust
A sculpture or design of a person’s head, shoulders and chest.
Buy/Sell Spread
The difference between the buy and selling price of precious metlas (or other securities and commodities) at the same time on the same day by the same person.
C
Call
The right (not an obligation) to purchase precious metals (or other commodities and/or securities) on a specified future date at a specified price.
Cameo
The cameo affect on a proof coin is a frosted device against a mirror-like field surface.
Canadian Maple Leaf
Canadian maple leafs are bullion products produced by the Rotal Canadian Mint. They are available in gold, silver, platinum and palladium.
Capsule
A plastic, two piece container that snaps together to protect a single coin while in storage and/or shipment.
Cash Market
A market in which payment and delivery must be made within two business days of the original transaction date.
Cashier’s Check
A check that is guaranteed by a bank, drawn on the bank’s own funds and signed by a Cashier or the bank itself. Typically treated as guranteed funds because it is the bank that is responsible for paying the amount.
Central Bank
A national banking entity that is responsible for establishment and control of a nation’s commercial banking system, control of the money supply and interest rates. In the United States, the Federal Reserve acts as the central bank.
Central Device
The primary design found on either side of a coin.
Certificate of Authenticity
A seal, sticker or paper that denotes the authenticity or ‘proof’ that an item is authentic.
Certified Coin
Coins that have been graded for quality and authenticity by an independent grading service. NGC (Numismatic Guaranty Corporation) and PCGS (Professional Coin Grading Service) are the two most widely trusted independent grading services.
Chinese Panda
Chinese pandas are bullion products produced by the China Mint. They are available in gold, silver, platinum and palladium.
Chop Mark
These are Chinese characters or marks typically stamped onto coins by merchants to validate the weight, purity and metal content of a coin.
Circulated
Circulated coins are coins that are issued for general everyday transactions.
Close
The official end of a trading session.
Coin
A small, typically flat, round piece of metal used primarily as a medium of exchange or legal tender.
Coin Grading
Examining and evaluating the quality, condition and purity of a coin using predefined industry standards.
Commemorative Coin
Coins that are produced to honor or commemorate a specific person, place or event in history.
Commodity
Something useful or valued that is subject to ready exhange within a market.
Condition
The state of something in regard to its appearance and/or quality.
Coronet
A small, typically simple crown or tiara often worn by lesser royalty. Many U.S. gold coins depict Lady Liberty wearing a coronet.
Cu
The elemental symbol for copper.
Currency
Money in any form that is used in circulation as a medium of exchange and/or payment.
D
DCAM
An attribute used by Professional Coin Grading Service (PCGS) to signify that the coin has a deep cameo appearance.
Denomination
The currency amount, or face value, designated on coins and currency.
Designer
The artist or sculptor that created a particular design on coins or currency.
Device
Part of a design on a coin. Typically, the predominant bust on a coin.
Die
An engraved metal stamp used to strike the design of a coin into a blank planchet.
Double Eagle
Pre-1933 United States $20 gold coins issued as legal tender between 1950 and 1933.
E
Eagle
Pre-1933 United States $10 gold coins issued as legal tender between 1795 and 1933.
Early Release
Coins that are revceived by a grading service, such as NGC or PCGS, within the first 30 days of the original release date.
EF
Coins in extra fine condition. Design elements are sharp and well-defined.
F
Face Value
The monetary value of a coin. Face values on precious metals coins is typically far less than the spot price value of their metal content – by design. This discourages its use as legal tender while encouraging use an investment or collector item.
Fiat Money
Paper money that has no precious metals backing but has been deemed ‘legal tender’ by law.
Field
The open area or background of a coin.
Fineness
The purity of the precious metal used within a coin, bar, ingot or round. Fineness is measured in 1,000 parts. As an example, a Gold American Buffalo coin is .9999 fine gold, meaning it is 99.99% gold.
First Strike
Coins that are received by a coin grading service, such as NGC or PCGS, within the first 30 days of the original release date.
G
Gold
A precious metal that is bright, slightly reddish yellow, soft and dense. It is resistant to corrosion and most chemical reactions. Gold has been throughout history as currency, jewelry, and many other applications.
Gold Buffalo
Gold buffalos are bullion products produced by the U.S. Mint. They are available in gold only and feature the original design of the widely popular 1913 Buffalo nickel..
Gold Bullion
Gold coins such as Gold American Eagles and Gold American Buffalos, that closely follow spot prices and have very little or no numismatic value. Bullion can also refer to gold in the shape of bars and ingots.
Gold Standard
A monetary system by which the value of currency is backed by gold coins and/or bars, for which the issued currency can be exchanged.
Grade
The condition of an item, typically a coin, that is determined by its visual wear or lack of wear.
Grading Service
An independent company, such as NGC or PCGS, that grades both bullion and/or numismatic coins. Typically, graded coins are sealed within a protective case, often called a “slab” that serves to protect the coin and preserve its condition.
H
Half Eagle
United States $5 gold coins issued as legal tender between 1795 and 1929.
Hallmark
The stamp or impression on a precious metal bar that signifies the mint or producer, serial number (if any), weight and/or purity of the bar.
Hedge
In investment intended to reduce the risk of adverse movements in the value of assets.
I
Ingot
A single piece of metal, typically a precious metal, that is cast into a shape (often a brick) more sutiable for further processing.
Intrinsic Value
The actual value of the precious metal, whether gold, silver, platinum or palladium, contained within a coin, bar or ingot.
IRA Eligible
Coins or bars deemed by the IRS to be eligible for a Precious Metals IRA.
J
Junk Silver
Silver that has no numismatic value but still holds a value in its silver content. Typically, these are pre-1964 U.S. silver coinage.
K
Karat
A measurement used in defining the purity of gold. Karats are measured on a scale of 1 to 24, with 24 being the highest. Karats are typically shown using the single letter “k”, such as 24k to denote 24 karat gold or pure gold.
Kennedy Half Dollar
A fifty-cent coin, first issued in 1964 by the U.S. Mint, to memorialize assassinated President John F. Kennedy.
Kilo Bar
A bar that weighs one kilogram, or 32.1507 troy ounces.
Kilogram
A weight measurement equal to 1,000 grams.
L
Legal Tender
Coin or currency deemed to be an acceptable form of payment by a goverment.
Legend
The inscription on a coin.
Lettered Edge
The edge of a coin, with writing or other inscriptions rather than the typical (or most recognizable) reeded edge.
Luster
The visual appearance of a coin’s surface, typically defined as satin, front, or prooflike.
M
Market Value
The price at which a coin or bullion item trades.
Markup
A premium assigned to an item to make a profit.
Medallion
A round piece of metal that resembles a coin but bears no face value and is not recognized as legal tender. Medallions may be produced by a government or a private mint.
Melt
The value determined by the current spot price without any fees added.
Mint Luster
The reflective qualities produced on a coin during the process of minting coinage.
Mint Mark
Letter(s), typically single, struck on a coin during the minting process to signify the location in which the coin was produced.
Mint State
A coin that is in the same condition as it was when it was produced. In certified coins, mint state is denoted as “MS”.
Mintage
The total number of items (typically coins) issued with the exact same design elements and attributes.
Monster Box
Coin storage and/or delivery boxes used by the mint to protect coins during shipping.
N
NGC
Numismatic Guaranty Corporation (NGC), one of the two most trusted independent coin grading services in the U.S.
Nominal Face Value
The nominal value given to precious metals coins, such as gold, silver, platinum and palladium, that are sold for the metal content rather than their face value, which is typically far less than the value of their precious metal content.
Numismatic Value
The value of a coin in relation to not only its spot price, but also rarity, condition, dates, mint marks and other attributes. Numismatic value is often much higher than intrinsic value alone.
Numismatics
The study of coins, paper currency and medals.
Numismatist
A specialist in the study of coins, paper currency and medals.
O
Obverse
The front side (typically the “heads” side) of a coin.
Offer
A motion to sell at a specified price.
OGP
Stands for “original government packaging” and referse to all packaging and certificates as provided by the issuing mint.
Option
The right, not an obligation to sell an item, typically a commodity or financial security, on a specified date in the future at a specified price.
Ounce
A measurement of weight. In the precious metals industry, one ounce means a troy ounce equal to 31.1035 grams.
Over Spot
A processing or handling fee charged in excess of the actual spot price value.
P
Palladium
A rare precious metal that is lustrous and silvery-white in color. Palladium closely resembles platinum visually.
PAMP
Products Artistiques Metaux Precieux, an independent refiner of precious metals located in Switzerland.
PCGS
Professional Coin Grading Service (PCGS), one of the two most trusted independent coin grading services in the U.S.
Pd
The elemental symbol for palladium.
Perth Mint
Australia’s official bullion mint, owned by the government of Western Australia.
PF
In coins certified by NGC, PF signifies “proof”.
PL
Denotes “proof like” in circulated coins that have features normally associated with collector coins.
Planchet
A blank piece of metal, such as gold, silver, platinum or palladium, that is struck or pressed by the die to produce a coin or medallion.
Platinum
A precious metal that is somewhat shiny with a silverish white color.
Population Report
The total numer of coins (population) with the same features and attributes that have been given the exact same grade.
PR
In coins certified by PCGS, PR signifies “proof”.
Precious Metals IRA
A self-directed individual retirement account (IRA) that allows you to invest in precious metals as part of your retirement.
Premium
The additional cost of a coin or bullion item, over the spot price of the precious metal within the coin. A premium includes the costs of production, distribution and a nominal dealer fee. Rare coins typically carry a higher premium based on numismatic value.
Proof
Denotes the process in which a coin is produced, rather than its condition. Proof coins are produced with highly polished dies and special planchets which produce a mirror-like finish.
Proof Set
A set of all coins issued during a specified year. They are typically struck multiple times to enhance their features and are specially handled to reduce imperfections.
Pt
The elemental symbol for platinum.
Purity
A measurement of the quality of the precious metal contained within a coin. The higher the purity, the better quality of the precious metal.
Put
An option that gives the right (not an obligation) to sell a commodity or financial security, such as precious metals, on a specified date in the future at a specified price.
Q
Quarter Eagle
United States $2.50 gold coins issued as legal tender between 1795 and 1929.
R
Raw
Coins that have not been graded by a coin grading service, such as NGC or PCGS.
Relief
Signifies the depth of which a coin is struck during production, as compared its background fields.
Restrike
New coins made from original, old dies. They are often referred to as “new minting” and generally have the exact same specifications as their original counterparts. Restrikes are usually not legal tender and usually made in such a large number that they have no numismatic value and it is virtually impossible to tell them appart from the originals.
Reverse
The back side (typically the “tails” side) of a coin.
Roll
A paper or plastic container, typically in the shape of a tube, to hold coins.
Round
Round pieces of metal, typically gold, silver, platinum or palladium, that are produced by private mints. Rounds do not carry a face value, making them different from coins.
Royal Canadian Mint
Canada’s official mint, which produces all of Canada’s circulating coins, as well as bullion, and manufactures circulating coins on behalf of other nations.
S
Saint-Gaudens
Augustus Saint-Gaudens, an american sculptor and coin designer whose work is widely known, praised and most recognizable. His design of $20 Gold Double Eagle is considered by many to be one of the most beauftiful coins ever created. In fact, it is often referred to as the “$20 Saint-Gaudens”.
Silver
A precious metal that is soft, lustrous in appearance. It has the highest electrical conductivity and the highest reflectivity of any metal.
Slab
Refers to the sealed holder used by coin grading services to protect the condition and grade of a coin.
Spot Price
The constantly fluctuating price of precious metals, such as gold, silver, platinum and palladium, in their raw form before fabrication. The current spot price varies with markets in different cities and countries throughout the world.. When purchasing precious metals in the United States, spot prices are typically based on prices in New York or Chicago.
Spread
The difference between the buying price and the selling price of precious metals, or other securities and commodities, at the same time on the same day by the same person.
Stacker
A coin or bar that is produced in such a way that one side fits almost perfectly into the next if it is stacked above or below it.
Sterling Silver
Silver that has a fineness of 92.5% purity.
Sterling Silver
The strength of the imprint created during the process of stamping a coin blank with its design.
T
Troy
A measurement of mass traditionally used for precious metals and gems. There are 12 troy ounecs in a troy pound.
Troy Ounce
A measurement of weight equal to 1.09711 ounces. In relation to precious metals, the word “ounce” always refers to troy ounces.
Troy Pound
A measurement of weight equal to 12 troy ounces.
Tube
A container used to store and protect coins or rounds, typically made of plastic.
U
UCAM
Used by the coin grading service NGC to indicate the coin has an Ultra Cameo appearance.
Uncirculated
A coin in new concition, often referred to as brilliant uncirculated or BU.
United States Mint
The official mint, or producer, of coinage and bullion for the United States.
V
VG
Denotes a coin in “very good” condition with its primary features worn but somewhat flat.
W
W
Mintmark of the United States West Point Mint.
X
XF
Denotes “extra fine” condition in relation to a coin. Design elements are sharp and appear well defined.
Y
Yield
A measurement of the annual return on an investment, such as precious metals, that is always expressed as a percentage.
Z
Zebra
If you made it all the way down to the letter Z, thank you for using our website. Technically, zebras have nothing to do with precious metals, however, we really wanted to fill this spot. Realistically, where else can one fit a zebra?
