Glossary

Ask Price – The selling price a dealer offers.

Bid Price – The price a dealer pays for bullion coins.

Bullion – Precious metals like platinium, gold and silver in the form of bars or other storage shapes. Bullion coins are also made from these metals.

Collector Coin, Historic Coin, or Numismatic Coin – A coin whose value is based on rarity, demand, condition and mintage.It may be worth more than its bullion value.

London Bullion Market Association (LBMA):

The London Bullion Market Association (LBMA) is the international trade association representing the global over-the counter- (OTC) bullion market. Members of the LBMA include e.g. refiners, assayers, traders and storage and transport providers. The LBMA sets standards for gold bars (Good Delivery bars) as well as for the trading of gold. The chain if integrity refers to the fact that only Good Delivery bars by LBMA refiners are allowed into vaults operated by LBMA members or the Bank of England. The vault operators effectively act as gatekeepers, who ensure the quality of the gold bars coming into the vaults. Once the bars are within LBMA vaults, they are only moved around by transport companies, which are members of the LBMA, if required. The integrity of the gold is insured as long as the bars do not leave this so-called chain of integrity. The chain of integrity helps keep costs down, since members of the LBMA effectively trust each other and can avoid or limit re-assaying gold they buy from each other.

Melt Value – The basic intrinsic bullion value of a coin if it were melted and sold.

Premium – The amount by which the market value of a gold coin or bar exceeds the actual value of its gold content. The seller can recover part of the premium at resale.

Spot Price – The current price in the physical market for immediate delivery of gold. Also called the cash price.

Troy Once – The unit of weight for precious metals. One troy ounce equals 480 grains, 1.09711 ounces or 31.103 grams.