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Alloy: A combination of two or metals together to form a higher strength alloy. Gold is sometimes alloyed with palladium. The palladium strengthens the dominant metal gold, and also gives it the “white gold” appearance.
Arbitrage: The simultaneous buying and selling of price differentials in the commodities markets.
Ask: The price at which a commodities firm will sell a commodity.
Assay: A test to determine the weight and purity of a precious metal.
AU: Gold`s chemical symbol.
Avoirdupois: A system of weights based on a 16 oz. pound. One avoirdupois ounce is the equivalent of 28.35 grams or 1/16 of an ounce.
Bid: The price that a commodities firm will pay for a commodity.
Bubble: Bubbles happen when the price of virtually any investment rises above what the fundamentals justify.
Bullion: A precious metal in its purest form usually in the shape of a bar or coin.
Business Strike Coins: A coin that was meant to be circulated.
Coin: A metal piece used for money usually backed by a government. Coins with intrinsic value are considered real money.
COMEX: The Commodity Exchange is where commodities like gold and silver trade on the open market.
Counterfeit: An imitation or phony reproduction of a coin or currency.
Denomination: An increment of value or face value associated with money.
Dollar: The name of the currency of the United States Government and considered the Global Reserve Currency.
Engelhard Corporation: World famous refiners of gold and silver products.
Face Value: The legal value stamped on a coin by a government but not necessarily the coins true value.
Fineness: A measure for the purity of a precious metal coin or bar. For example: .999 fine is equivalent to 99.90% pure.
Grading Service: A neutral company that grades and certifies numismatic coins. Once the grade and condition are determined the coins are typically protected and preserved in a hard plastic casing.
Hallmark: A mark that is stamped into a bullion product to identify the producer.
Hedge: A hedge is an established position in one market designed to offset risk or exposure in another market.
Intrinsic Value: The monetary value of a coins metal content.
Junk Silver: A coin with no numismatic value or worth above its metal content.
Kilo Bar: A gold bullion bar that weighs 32.1507 troy ounces.
Legal Tender: A legalized medium of exchange used for the satisfaction of financial obligations.
Liquidity: The ability of an asset to be easily converted into another asset without a loss of value
London Fix: A benchmark reached each day in London for the price of gold, determined by five prestigious precious metals firms.
Market Value: The price a coin or bar can be sold for.
Mint Mark: Indicates where the coin or bar was produced.
Modern Issue Coin: Coins currently being issued to investors and collectors by various governments around the world.
NGC: Numismatic Guaranty Corporation is a third party coin grading service renowned for its integrity.
Numismatics: The collecting of coins and currency that are valued because of age, date, condition and were once circulated as legal tender.
Ounce: Equivalent in weight to 1/16 avoirdupois pound or 1/12th of a troy pound.
PCGS: Professional Coin Grading Service is considered to be the premier third party grading service.
Ponzi scheme: A fraudulent promise of high returns. New investor funds are used to pay old investors.
Premium: The value of a coin above and beyond its intrinsic value.
Quantitative Easing: The purchase of government bonds by a central bank in an effort to prevent deflation. Inflation is one of the inherent risks associated with Quantitative Easing.
Risk: The chance an investor takes when purchasing any investment.
Restrike: When a coin that had previously been in circulation is reproduced.
Silver Eagle: A 1 ounce, .999 fine silver coin produced by the United States Mint.
Spot Price: The price used when buying or selling bullion products.
Spread: The difference between the bid price & ask price.
Troy Ounce: The weight of a unit of precious metals. One troy ounce is equal to 1.09711 avoirdupois ounce.
Treasuries: The name used for U.S. Treasury Bills, U.S. Treasury Notes and U.S. Treasury Bonds.
Un-circulated: A coin in new condition that was never circulated.