Glossary

A

Alloy: A combination of two or metals together to form a higher strength alloy. Gold is sometimes alloyed with palladium. The palladium strengthens the dominant metal gold, and also gives it the “white gold” appearance.

Arbitrage: Simultaneous buying and selling of price differentials in the commodities markets.

Ask: A price at which a commodities firm will sell a commodity.

Assay: A test to determine the weight and purity of a precious metal.

AU: Gold’s chemical symbol.

Avoirdupois: A system of weights based on a 16 oz. pound. One avoirdupois ounce is the equivalent of 28.35 grams or 1/16 of an ounce.

B

Bid: The price that a commodities firm will pay for a commodity.

Bubble: Bubbles happen when the price of virtually any investment rises above what the fundamentals justify.

Bullion: A precious metal in its purest form, usually in the shape of a bar or coin.

Business Strike Coins: A coin that was meant to be circulated.

C

Coin: A metal piece used for money, usually backed by a government. Coins with intrinsic value are considered real money.

COMEX: The Commodity Exchange is where commodities like gold and silver trade on the open market.

Counterfeit: An imitation or phony reproduction of a coin or currency.

D

Denomination: An increment of value or face value associated with money.

Dollar: The name of the currency of the United States Government and considered the Global Reserve Currency.

E

Engelhard Corporation: World famous refiners of gold and silver products.

F

Face Value: The legal value stamped on a coin by a government but not necessarily the coins true value.

Fineness: A measure for the purity of a precious metal coin or bar. For example: .999 fine is equivalent to 99.90% pure.

G

Grading Service: A neutral company that grades and certifies numismatic coins. Once the grade and condition are determined, the coins are typically protected and preserved in a hard-plastic casing.

H

Hallmark: A mark that is stamped into a bullion product to identify the producer.

Hedge: A hedge is an established position in one market designed to offset risk or exposure in another market.