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Precious Metals Glossary
Common terms used in gold and silver markets, explained simply.
- Spot Price
- The current market price for immediate delivery of one troy ounce of a precious metal.
- Troy Ounce (oz t)
- Standard unit of measurement for precious metals. 1 troy ounce = 31.1034768 grams.
- Karat (k)
- A measure of gold purity. 24k = 99.9% pure; 18k = 75%; 14k = 58.3%; 10k = 41.67%.
- Fineness
- Purity expressed in parts per 1000. 24k = 999 fine; 22k = 916; 18k = 750; 14k = 585; 10k = 417.
- Tola
- Traditional South Asian unit of mass equal to 11.6638 grams.
- LBMA
- London Bullion Market Association — the global authority for over-the-counter trading of gold and silver bullion.
- COMEX
- Commodity Exchange in New York where gold and silver futures are traded.
- Bullion
- Precious metals in bulk form — typically bars, ingots or coins valued by weight rather than face value.
- Bid / Ask
- Bid is the highest price a buyer will pay; ask is the lowest price a seller will accept. The difference is the spread.
- Premium
- Amount charged above spot price by dealers to cover refining, minting, distribution and profit.
- ETF
- Exchange Traded Fund — financial instrument that tracks the price of gold (e.g. GLD) without holding physical metal.
- Numismatic
- Coins valued for rarity, condition or historical importance beyond their metal content.
- Assay
- A test to determine the purity of a precious metal.
- Hallmark
- An official mark stamped on precious metal items to certify their purity.