Glossary

A

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.

B

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.

C

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.

D

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.

E

Engelhard Corporation: World famous refiners of gold and silver products.

F

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.

G

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.

H

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.

I

Intrinsic Value: The monetary value of a coins metal content.

J

Junk Silver: A coin with no numismatic value or worth above its metal content.

K

Kilo Bar: A gold bullion bar that weighs 32.1507 troy ounces.

L

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.

M

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.

N

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.

O

Ounce: Equivalent in weight to 1/16 avoirdupois pound or 1/12^th of a troy pound.

P

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.

Q

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.

R

Risk: The chance an investor takes when purchasing any investment.

Restrike: When a coin that had previously been in circulation is reproduced.

S

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.

T

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.

U