Bullion Glossary

A storage arrangement where specific, identifiable bars or coins are assigned to your account and held separately in a vault. You own particular physical items, not just a claim on a quantity of metal. Contrast with unallocated storage.

A mixture of two or more metals. Pure gold is too soft for everyday handling, so many bullion coins are alloyed with copper or silver to improve durability. The precious metal content is expressed separately as the fineness.

A deliberate finish applied to a coin to give it an aged, weathered appearance. The surface is chemically or mechanically treated after striking to create a darkened, matte look with highlighted relief details.

The price at which a dealer is willing to sell a product. Also called the offer price. The gap between the ask price and the bid price is the spread.

A test to verify the purity and composition of a precious metal item. Bars are often sold sealed in an assay card, a certificate from the refiner confirming the bar's weight and fineness.

A rectangular piece of refined precious metal, produced in weights from 1 gram to 1 kilogram or more. Bars generally carry lower premiums than coins because they have no face value or legal tender status and are simpler to produce.

The price at which a dealer is willing to buy a product back from you. Always lower than the ask price. The difference between the two is the spread.

A coin finish produced to a higher standard than regular circulation strikes but below proof quality. BU coins have a consistent, lustrous surface with sharp detail, and are the most common finish for bullion coins.

Precious metal in the form of bars, coins, or rounds, valued primarily by weight and purity rather than rarity or collectibility. Investment-grade bullion is typically 99.5% pure or higher.

A precious metal coin issued by a government mint as legal tender, valued primarily for its metal content rather than its face value. Bullion coins carry a small premium over the spot price to cover minting and distribution.

A satin-like coin finish produced by polishing the blank before striking, resulting in a smoother, more uniform surface than a standard bullion strike but without the mirror fields of a proof.

The price a dealer will pay to repurchase bullion from you, usually close to or slightly below the current spot price. The gap between what you paid and what you'd receive back is the true round-trip cost of owning physical bullion.

A clear protective plastic case that encloses an individual coin or round. Capsules prevent handling damage and tarnishing, and are often included by the mint or sold separately for a small additional cost.

A bar made by pouring molten precious metal into a mould and allowing it to solidify. Cast bars have a rougher, more organic appearance than minted bars and often carry slightly lower premiums due to simpler production. Also called a poured bar.

A document from the mint or manufacturer certifying a product's weight, purity, and specifications. Commonly included with proof coins and limited editions. Not required for standard bullion but adds confidence at resale.

In the UK, certain bullion coins that are legal tender, such as Britannias and sovereigns, are exempt from Capital Gains Tax when sold at a profit. This can make a meaningful difference on large holdings or long-term investments.

In bullion terms, a disc of precious metal issued by a government mint with a legal tender face value. Distinguished from rounds (privately minted, no face value) and bars (rectangular, no face value).

A coin enhanced with coloured enamel, ink, or pad printing applied to part of its design after striking. Colorized coins are popular as gifts and collectibles but typically carry higher premiums and may have lower resale appeal among bullion buyers.

A coin issued to mark a specific event, anniversary, or theme. Commemoratives are often produced in limited quantities with special designs and carry higher premiums than standard bullion coins.

A coin that is heavily worn, damaged, or otherwise in poor condition but still contains its full precious metal content. Culls are sold at a discount and are popular with stackers who want the lowest possible premium over spot.

The nominal monetary value stamped on a coin by its issuing government. On bullion coins, the face value is always far below the metal value: a 1 oz gold Britannia carries a face value of £100 but trades at many times that.

Government-issued money that is not backed by a physical commodity like gold or silver. All major national currencies today are fiat currencies, which is part of what motivates bullion investment as a store of value.

Gold with a purity of 99.9% (999 millesimal fineness) or higher. Most modern bullion bars and coins are fine gold, with .9999 (four nines fine) being the most common standard.

The purity of a precious metal, expressed in parts per thousand. A bar marked .999 is 99.9% pure metal; .9999 is 99.99%. For gold, purity is also expressed in karats.

Silver with a purity of 99.9% or higher, containing minimal impurities. The standard purity for modern bullion silver coins and bars.

The actual precious metal content of a coin or bar, calculated by multiplying its gross weight by its fineness. A gold sovereign weighs 7.98 g at .9167 fineness, so its fine weight is 7.31 g of pure gold.

A bullion coin weighing less than one troy ounce, typically 1/2 oz, 1/4 oz, or 1/10 oz. Fractional coins offer a lower entry price per coin but carry higher premiums per ounce of metal than full-ounce coins.

A bullion bar or round produced by a private mint without a recognised brand name or series identity. Generics are typically the cheapest way to buy bullion by weight, carrying the lowest premiums over spot.

A coin or bar with a thin layer of gold applied over its surface, usually for decorative effect. On bullion products, gilding typically means gold highlights on selected design elements of a silver coin.

The number of troy ounces of silver needed to buy one troy ounce of gold at current prices, calculated by dividing the gold spot price by the silver spot price. Used by investors to gauge the relative value of the two metals and time purchases.

A set of quality standards for bullion bars established by the LBMA. Good Delivery bars must meet strict requirements for weight, purity, dimensions, and marking, and represent the benchmark for institutional precious metals trading.

A coin that has been professionally assessed and assigned a numerical condition score by a third-party service such as NGC or PCGS. Graded coins are sealed in a tamper-proof plastic holder (slab) with the grade displayed. Most bullion buyers purchase ungraded.

In Australia, investment-grade precious metals are exempt from the 10% Goods and Services Tax. Gold must have a fineness of .995 or higher; silver and platinum must be .999 or higher.

Official marks stamped into a precious metal item indicating its purity, maker, and sometimes the assay office and year of manufacture. In the UK, hallmarking is a legal requirement for gold, silver, and platinum items above certain weights.

A coin struck with extra depth to its design, making the raised elements stand out more prominently than on a standard strike. High relief coins require greater striking pressure and are usually produced as limited editions with higher premiums.

A piece of precious metal cast by pouring molten metal into a mould, as opposed to being stamped or minted. Often used interchangeably with "bar," though ingot usually implies a rougher, cast finish rather than a smooth minted one.

In Singapore, qualifying Investment Precious Metals are exempt from the 9% Goods and Services Tax. Gold, silver, and platinum bars and coins must meet specific purity and form requirements set by the Inland Revenue Authority of Singapore.

In the United States, certain bullion products meeting IRS purity standards (.995+ for gold, .999+ for silver and platinum) can be held in a self-directed Individual Retirement Account, offering tax-advantaged bullion ownership.

Circulated pre-1965 (US) or pre-1947 (UK) coins that contain silver but have no numismatic premium. Bought purely for their silver content at prices close to melt value, junk silver is one of the cheapest ways to acquire physical silver.

A measure of gold purity on a scale of 1 to 24, where 24 karat is pure gold (.999+ fineness). 22 karat (91.67% pure) is used in traditional bullion coins like sovereigns; 24 karat is the standard for most modern bullion. Spelled "carat" outside North America.

The London Bullion Market Association, the international body that oversees the wholesale precious metals market. The LBMA sets the Good Delivery standard for bars, maintains accredited refiner lists, and administers the daily gold and silver price benchmarks.

A coin or banknote officially recognised by a government as valid for payment of debts. Bullion coins that are legal tender may qualify for tax advantages (such as CGT exemption in the UK), even though their metal value far exceeds their face value.

The benchmark price for gold and silver set twice daily (10:30 and 15:00 London time) through an electronic auction among accredited LBMA participants. Used as the reference price for large institutional trades and contracts worldwide. Now officially called the LBMA Gold Price and LBMA Silver Price.

A UK VAT arrangement where dealers pay tax only on their profit margin rather than on the full sale price. Commonly applied to pre-owned or imported silver and platinum bullion, significantly reducing the effective tax cost for the buyer.

The value of a coin, bar, or round based purely on its metal content at the current spot price, ignoring any premium, rarity, or face value. Calculated as fine weight multiplied by the spot price per unit.

Small white blemishes that can appear on the surface of silver and occasionally gold coins over time. Caused by residues from the minting process reacting with the metal. Milk spots are cosmetic only and do not affect the coin's metal content or weight.

The total number of coins produced in a particular issue or year. Lower mintage can increase collector demand and premiums, though standard bullion coins with unlimited mintage are unaffected.

A bar produced by cutting blanks from a rolled sheet of precious metal and stamping them with a design using a press. Minted bars have a smooth, polished finish with crisp edges and markings, and carry a small premium over cast bars.

A small letter, symbol, or design element stamped on a coin to identify which mint facility produced it. Mint marks help distinguish coins of the same design struck at different locations.

The sealed bulk packaging format used by government mints, typically containing 500 coins in tubes. Buying a sealed monster box offers the lowest per-coin premium and is popular with serious stackers building large positions.

Relating to the study and collection of coins valued for their rarity, historical significance, and condition rather than their metal content. Numismatic coins trade at premiums well above their melt value and are a separate market from bullion.

The front or "heads" side of a coin, typically featuring a portrait of a monarch, president, or national symbol.

The amount above the current spot price that a dealer charges for a bullion product. "£3 over spot" means the price equals the current spot price plus £3. Another way of expressing the premium as an absolute amount rather than a percentage.

A coin struck on a planchet that is twice the normal thickness and weight. Piedforts are collector items produced in limited quantities and carry high premiums. They are not standard bullion products.

A base metal product coated with a thin layer of precious metal. Plated items contain very little actual gold or silver and have no bullion investment value. Be wary of listings described as "gold-plated" or "silver-plated."

Another name for a cast bar, made by pouring molten metal into a mould. Poured bars have a characteristically irregular, handmade appearance with rounded edges. Some stackers prefer them for their artisanal character.

The extra cost of a bullion product above the spot price of its metal content, usually expressed as a percentage. Covers manufacturing, distribution, and dealer margin. Smaller items and coins typically carry higher premiums than large bars.

Bullion previously purchased by another buyer and sold back to a dealer, also called secondary market. Pre-owned items may show minor handling marks but contain the same metal content as new, and are typically sold at lower premiums.

A non-government commercial operation that produces bullion bars, rounds, and medals. Products from private mints are not legal tender and carry no face value, but reputable private mints produce to the same purity standards as sovereign mints.

A small additional design element added to a coin to denote a special edition, anniversary, or limited production run. Distinct from a mint mark, which identifies the manufacturing facility.

The highest-quality coin finish, produced using specially polished dies and planchets. Proof coins feature mirror-like background fields with frosted raised design elements, are struck multiple times at higher pressure, and are sold in protective packaging.

A listing where the dealer ships whichever year of a particular coin they have in stock, rather than a specific date. Random year coins offer a way to buy at slightly lower premiums when the year of issue doesn't matter to the buyer.

The series of fine vertical grooves around the rim of a coin. Originally introduced to prevent clipping (shaving metal from the edges), reeded edges are now a standard security and design feature on most bullion coins.

A company that processes raw or recycled precious metals, separating and purifying them to investment-grade fineness. Refiners produce finished bars and supply blanks to mints for coin production. Major refiners are accredited by the LBMA.

An officially authorised reproduction of a historic coin design, produced by a government mint using modern techniques. Restrikes are valued for their metal content rather than numismatic rarity and are a common way to own classic designs at bullion premiums.

The back or "tails" side of a coin, typically featuring a national emblem, symbolic design, or commemorative imagery.

A coin finish that inverts the standard proof technique: the raised design elements have a mirror finish while the background fields are frosted. A visually striking variant usually produced in limited quantities.

A disc of precious metal produced by a private mint. Rounds resemble coins in shape and size but carry no face value and are not legal tender. They typically carry lower premiums than government-issued bullion coins.

In Canada, certain bullion products meeting purity standards (.995+ for gold, .999+ for silver and platinum) can be held in a Registered Retirement Savings Plan, offering tax-deferred bullion ownership.

A bullion product that carries some collector premium beyond its pure metal value, more than a standard bullion piece but far less than a rare numismatic coin. Limited editions and older bullion issues often fall into this category.

In the UK, certain bullion products can be held within a Self-Invested Personal Pension. LBMA-approved gold bars and qualifying gold coins are eligible, providing tax-advantaged exposure to physical gold within a pension wrapper.

A government-operated or government-authorised facility that produces a country's official coinage, including legal tender bullion coins. Products from sovereign mints often qualify for tax advantages that private mint products do not.

A coin finish between brilliant uncirculated and proof quality, produced with extra care to achieve a high-quality, satin-like surface. Specimen coins are typically sold in special packaging as collector pieces.

The current market price for immediate delivery of a precious metal, quoted per troy ounce. Determined by global trading on exchanges like the LBMA and COMEX, fluctuating throughout the trading day. This is the baseline from which all bullion product prices are derived.

The difference between a dealer's buy (bid) and sell (ask) prices for the same product. A tighter spread means lower transaction costs. Spreads vary by product type, dealer, and market conditions.

An alloy of 92.5% silver and 7.5% copper, widely used in jewellery and tableware. Sterling is below the .999 purity threshold for investment-grade bullion and is not typically sold as a bullion product.

In Canada, qualifying bullion products can be held in a Tax-Free Savings Account, where investment gains are completely tax-free. The same purity requirements as RRSP eligibility apply.

The standard unit of weight for precious metals, equal to 31.103 grams, about 10% heavier than the common avoirdupois ounce (28.35 g) used for everyday items. When bullion is priced "per ounce," it always means troy ounces.

A cylindrical plastic container holding a fixed number of identical coins, typically 20 or 25, depending on the coin size. Buying by the tube offers a lower per-coin premium than buying individually and is the standard bulk unit below a monster box.

A storage arrangement where you own a claim to a quantity of precious metal, but not specific identifiable items. Your holding is pooled with other investors' metal. Lower fees than allocated storage, but carries counterparty risk if the storage provider fails.

In the UK and EU, investment gold meeting purity and form criteria is VAT-exempt. Silver and platinum bullion attract VAT in most jurisdictions, though the margin scheme can reduce the effective rate. Rules vary significantly by country. Check the specific rules for your location.