Precious Metals Industry Terms & Meanings

Assay – The testing of a metal or an ore to determine its ingredients and quality

Fire assay – The industry standard process for obtaining gold contained within other materials

Gold bars – Common sizes: 

400-troy-ounce: The standard gold bar, held by central banks and traded by bullion dealers. A single 400-troy-ounce gold bar weighs 27.4 pounds and measures 7 inches by 3 and 5/8 inches by 1 and 3/4 inches.
100-troy-ounce: A popular size for trading and investment.
1-kilogram: Another popular size for trading and investment, weighing 32.15 troy ounces.
1-ounce: A popular size for investors, with low premiums.
10-ounce: A common size, often from a recognized private hallmark.
1/100th troy ounce: A more affordable option for investors.

Gold Ingot – Sometimes the term “gold ingot”is used interchangeably with gold bar, but the name is more process oriented, referring to how they are made. Ingots are produced by casting molten metal into molds. Because of the way they are produced, ingotsare typically largergold products. They are distinct fromsmaller gold products, which are produced differently, either by minting or stamping sheets of gold bullion.

Bullion – This term is often used to indicate investment grade gold (24k). The word “bullion” typically refers to gold that is high quality with low premiums that is purchased to be held on to for investment purposes. Valaurum's latest Natural Treasure gold bills are referred to as a bullion series, with bills ranging from 25mg all the way up to 1 gram of 24k gold.

Premiums – Gold premiums are the extra price charged over the gold spot price, and can be affected by the form (bar, coin, bills, etc.), its size, the mint's reputation, and current market conditions.

Numismatics – The study and collection of money and other forms of payment, such as coins, tokens, medals, and paper currency. The term comes from the Greek word nomisma, which means ”coin.” A person who collects coins, medals, or paper money is called a numismatist.

Spot Gold Price – The current market price of gold at which traders can perform over-the-counter trades with each other.

Specie Legal Tender – Specie legal tender refers to a precious metal coin that is authorized as legal tender by a sovereign entity.

Denomination – Denomination refers to the different values assigned to money. For example, five dollars, twenty Euros, one hundred yen, etc. Some countries have experienced periods of hyperinflation, causing them to issue ever-higher denominations. A recent example of this phenomenon occurred in Zimbabwe during the early 2000s, spurred by economic unrest and governmental missteps.

Intrinsic Value (Bullion Value) – Currentmarket value of the precious metal in a coin

Legal Tender – Coins, dollar bills, or other currency issued by a government as official money. Many countries and governments do not issue their own currency and instead rely on more common currencies such as Euros or the U.S. dollar. In addition, many nations that do issue their own currencies will still use Euros or dollars as their preferred means of exchange, particularly for everyday transactions.

Medium of Exchange – “Medium of exchange” is an economic term referring to any instrument or object used to facilitate the sale of goods and services. A medium of exchange is a widely accepted form of payment within a culture or country. Historic examples include cowrie shells, precious metals, barter goods, and national currencies.

Obverse – The front (or “heads”) side of a coin or bill.

Reverse – The back (or “tails”) side of a coin or bill.