Key Terms and Phrases
Synopsis
We understand that to a newcomer there can be a mountain of information to digest, new terms to understand and many abbreviations in both coin collecting and bullion. We try our best to break this down on all our webpages publishing information suitable to a new investor or collector all the way through to our most experienced customer. Here we have dedicated a page to breaking down jargon, abbreviations and technical terms to help you navigate the numismatic and bullion industry.
AGW - Actual Gold Weight
In line with Krause, we usually quote the actual fine gold content of most coins in troy ounces. The price per troy ounce is the most widely quoted price for precious metals. To convert gross weight in grams to actual intrinsic gold content: Gross weight in grams/31.1035 = Gross weight in troy ounces. Gross weight in troy ounces x Fineness (alloy) = actual fine content in troy ounces.
ASW - Actual Silver Weight
In line with Krause, we usually quote the actual fine silver content of most coins in troy ounces. The price per troy ounce is the most widely quoted price for precious metals. To convert gross weight in grams to actual intrinsic silver content: Gross weight in grams/31.1035 = Gross weight in troy ounces. Gross weight in troy ounces x Fineness (alloy) = actual fine content in troy ounces.
Au
Au is the chemical symbol for gold, a yellow metallic element, and comes from the Latin word aurum meaning gold.
Bar
A bar of precious metal is refined metal that has no numismatic value.
Bullion
This is a term used to describe precious metals, bought or sold, at or close to the intrinsic metal value.
Buy Back
As a bullion dealer, we would normally refer to a buy or buying price rather than a "buy back" price. We buy and sell, we do not just "buy back", which would be typical of a retailer who only repurchases their own goods as opposed to engaging in genuine two-way trade.
Coin
An object, usually a piece of metal, often a flat disc, used as money. Gross weight in troy ounces x Fineness (alloy) = actual fine content in troy ounces.
Fineness
Fineness, in gold, silver and other precious metals, expresses the percentage of gold to other metals in parts per thousand.
An example of Fineness would be 24 karat - is equal to 0.999 or 0.9999 or 0.99999 fineness of pure gold or in one instance 0.999999 that was refined by the Perth Mint in 1957.
| Gold Purity | Fineness | Carat |
| 99.9% | 999 | 24ct |
| 99.5% | 995 | 24ct |
| 95.83% | 958.3 | 23ct |
| 91.6% | 916 | 22ct |
| 90% | 900 | 21ct |
| 83.4% | 834 | 20ct |
| 75% | 750 | 18ct |
| 58.5% | 585 | 14ct |
| 41.7% | 417 | 10ct |
| 37.5% | 375 | 9ct |
| 33.3% | 333 | 8ct |
Intrinsic Value
The value of the metal contained within the coin or bar.
Investment Gold
According to HM Customs & Excise: Investment gold is either
a. gold of a purity not less than 995 thousandths that is in the form of a bar, or a wafer, of a weight accepted by the bullion markets
b. a gold coin minted after 1800 that is:
- of a purity of not less than 900 thousandths
- or has been, legal tender in its country of origin
- of a description of coin that is normally sold at a price that does not exceed 180 per cent of the open market value of the gold contained in the coin
Margin
The difference between the dealer's cost price and selling price.
Markets Closed
The Precious metal market is where everyone can buy and sell precious metals on the precious metal market. The markets close Friday at 10pm and open at 11pm on Sunday.
Medallion
A medallion is a small piece of jewellery that is the shape of a medal and can be worn as a pendant on a necklace.
Numismatic
Relating to coins or the study of coins.
Premium
The percentage over and above the current gold value at which an item trades at. It maybe negative, in which case it may be called a discount.
Special Scheme
Alternatively, as a consumer, you can purchase second-hand silver. This will mean you only pay VAT on the sellers' profit margins, not on the whole amount. Don't forget, when you come to sell back your silver you will lose the VAT element so as a long-term investment, it is always best to buy second hand where you can. We have a full explanation on our page for silver sold on the margin scheme.
Spot Price
The spot price is the current price that gold (or other commodity) can be bought or sold for "immediate delivery". The spot price can refer to the live price of gold per ounce, gram or kilo. Typically, however, spot gold is quoted in price per ounce using U.S. Dollars.
Surcharge
A surcharge is an additional charge on the precious metals.
XAU
XAU is the ISO 4217 currency code for gold, denoting one troy ounce of gold.
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