Bullion and Numismatic Jargon
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.
Au
Au is the chemical symbol for gold, a yellow metallic element, and comes from the Latin word aurum meaning gold.
XAU
XAU is the ISO 4217 currency code for gold, denoting one troy ounce of gold.
Bullion
This is a term used to describe precious metals, bought or sold, at or close to the intrinsic metal value.
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.
Investment Gold
According to HM Customs & Excise: Investment gold is either
- 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
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a gold coin minted after 1800 that is:
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of a purity of not less than 900 thousandths
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or has been, legal tender in its country of origin
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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
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Intrinsic Value
The value of the metal contained within the coin or bar.
Margin
The difference between the dealer's cost price selling price.
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.
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.
Buy Sell Spread
The difference between the buying price and the selling price.
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.