Precious Metals Glossary

A mixture of two or more metals. Sterling silver, for example, is an alloy of silver and copper.

The lowest price a seller is willing to accept for a precious metal. Also called the "offer price."

A test that verifies a precious metal's purity and weight. Many bars are sold with an assay card or certificate — a guarantee from the assayer that the product contains exactly the amount and purity of metal described. When you see "assay" on a product listing, it's a mark of verified authenticity.

A rectangular piece of refined precious metal, typically stamped with its weight, purity, and mint of origin.

The highest price a buyer is willing to pay for a precious metal at a given moment.

A coin in new, unhandled condition that retains its original mint luster. A step above simply "uncirculated" — BU coins show no wear and have not been distributed for commerce. Common grading language you'll see on coin listings.

Precious metals in bulk form — bars, rounds, or coins — valued primarily by their metal content and weight rather than face value or collectibility.

A government-issued legal tender coin valued primarily for its precious metal content rather than its face value or rarity. Common examples include the American Silver Eagle, Canadian Maple Leaf, and South African Krugerrand. Unlike rounds, bullion coins carry a nominal face value and are backed by their issuing government's mint.

The Commodity Exchange, Inc. — the primary U.S. futures exchange where gold and silver contracts are traded. COMEX pricing is one of the key benchmarks that determines the global spot price for precious metals.

The nominal dollar amount stamped on a government-issued coin — for example, $1 on an American Silver Eagle. Face value is almost always a fraction of the coin's actual market value and exists primarily to give the coin legal tender status.

Silver that is 99.9% pure or higher. Most investment-grade silver bars, including those sold by McFarland Metals, are .999 fine silver.

A measure of the purity of a precious metal, expressed as a decimal or parts per thousand. For example, .999 means 999 parts per 1,000 are pure silver.

The number of ounces of silver it takes to buy one ounce of gold at current prices. For example, a ratio of 80 means gold is trading at 80 times the price of silver. Investors use this ratio as a signal for when one metal may be undervalued relative to the other.

A stamp or engraving on a precious metal bar or coin that indicates its purity, weight, and the refiner or mint that produced it. Hallmarks are a standard mark of quality and authenticity — always look for them when purchasing bullion.

A cast piece of refined precious metal. In the bullion industry, "ingot" and "bar" are used interchangeably, though ingots are often associated with larger, cast-pour products rather than minted bars.

A self-directed Individual Retirement Account that allows investors to hold physical gold, silver, platinum, or palladium as part of their retirement savings. Not all bullion products qualify — the IRS requires metals to meet minimum purity standards (.995 for gold, .999 for silver) and be stored with an approved custodian.

A unit of measurement for gold purity, expressed on a scale of 24. Pure gold is 24 karat (24K). 18K gold is 75% pure; 14K is 58.3% pure. Karat applies to gold only — silver purity is measured by fineness (e.g., .999). Investment-grade gold bullion is typically 22K (.9167) or 24K (.9999).

The intrinsic value of a precious metal item based solely on its metal content and the current spot price.

A facility that produces coins, rounds, or bars from precious metals. Examples include the U.S. Mint, Royal Canadian Mint, and private mints such as Engelhard and Sunshine Minting.

The total number of units produced of a specific coin, round, or bar design. Lower mintage products are generally more scarce and may carry a higher premium, particularly among collectors. Mintage figures are often published by the issuing mint.

The study and collection of coins, currency, and medals. A numismatic coin is one valued beyond its metal content — for its rarity, age, historical significance, or condition. Numismatic coins typically carry much higher premiums than bullion coins and are better suited for collectors than straightforward metal investors.

The amount paid above the spot price for a bullion product. Premiums cover minting, distribution, and dealer costs. Lower premiums generally mean better value for investors buying purely for metal content.

A specially minted coin produced with greater striking pressure and polished dies, resulting in a mirror-like background and frosted design details. Proof coins are made for collectors rather than circulation and typically carry a higher premium than bullion or uncirculated versions of the same coin.

A privately minted coin-shaped piece of silver or gold. Unlike government-issued bullion coins, rounds have no face value and are not legal tender. They are popular among investors for their lower premiums and wide variety of designs.

The current market price for one troy ounce of silver for immediate delivery. Spot prices fluctuate throughout the trading day based on global supply and demand.

The real-time price at which a commodity — such as silver or gold — can be bought or sold for immediate delivery. All bullion pricing is based on spot price plus a dealer premium.

The difference between a dealer's ask (sell) price and bid (buy) price for the same metal at the same time. A tighter spread generally indicates a more competitive dealer. Understanding the spread helps you accurately compare costs across dealers.

The standard unit of weight used for precious metals. One troy ounce equals approximately 31.1 grams — slightly heavier than a standard (avoirdupois) ounce of 28.35 grams. All precious metals spot prices are quoted per troy ounce.

A system of measurement used for precious metals, based on the troy ounce. Commonly used weights include the grain, pennyweight, troy ounce, and troy pound.

A coin or round that has never been used in commerce and retains its original mint condition. See also: Brilliant Uncirculated (BU).