A
Allocated Storage
A storage method where specific metals (with serial numbers or identifiable bars/coins) are assigned directly to you. You legally own the exact metals being stored.
Ask Price
The price a dealer is willing to sell metal to you for. This is typically higher than spot due to premiums.
Assay
A test performed to verify the purity and authenticity of a metal. Often included with gold bars.
B
Bar
A rectangular piece of precious metal, typically lower premium than coins. Comes in sizes like 1 oz, 10 oz, 100 oz, and larger.
Bid Price
The price a dealer is willing to pay you for your metal. This is usually below spot.
Bull Market
A period where metal prices are rising.
Bullion
Precious metal in bulk form (bars or coins) valued primarily for metal content rather than collectibility.
C
Coin
Government-minted metal product with a face value. Typically carries slightly higher premiums than bars.
COMEX
A major commodities exchange where gold and silver futures are traded. Often influences spot prices.
Counterparty Risk
The risk that the other party in a financial transaction fails to meet its obligations (relevant in ETFs and vaulting services).
D
Dealer Spread
The difference between the buy price (ask) and sell price (bid). This is how dealers make money.
Dollar-Cost Averaging (DCA)
A strategy where you invest fixed amounts regularly regardless of price to reduce timing risk.
E
ETF (Exchange-Traded Fund)
A financial product that tracks the price of gold or silver but does not necessarily give you direct ownership of physical metal.
Eligible Storage
Metals stored in vaults that meet exchange requirements but are not specifically allocated to an individual owner.
F
Fiat Currency
Government-issued money not backed by a physical commodity (e.g., US dollar).
Fineness
The purity of a metal expressed as a decimal (e.g., .999 = 99.9% pure).
Futures Contract
A legal agreement to buy or sell metal at a predetermined price at a future date. Often used for speculation or hedging.
G
Gold-Silver Ratio
The number of ounces of silver it takes to buy one ounce of gold. Used by investors to gauge relative value.
H
Hedge
An investment designed to offset potential losses in other assets.
Holdings
The amount of metal owned in a portfolio.
I
Inflation Hedge
An asset that historically retains purchasing power during inflationary periods.
Intrinsic Value
The actual metal value of a coin or bar based on weight and purity.
L
Liquidity
How easily you can buy or sell your metal at market price.
LBMA (London Bullion Market Association)
An international authority overseeing global bullion standards.
M
Mint
A facility that produces coins and bars. Can be government-operated or private.
Market Cap
Total value of a metal calculated by multiplying supply by current price.
P
Paper Gold / Paper Silver
Financial instruments that track metal prices but do not represent physical ownership.
Physical Ownership
Direct possession and control of actual metal.
Premium
The amount paid above spot price when purchasing physical metal.
S
Safe Haven Asset
An asset that tends to retain or increase value during market instability.
Secondary Market
The resale market for previously owned coins and bars.
Spot Price
The current global market price of raw metal traded on exchanges.
U
Unallocated Storage
Storage where you own a claim to metal, but not specific bars or coins. Lower cost but higher counterparty risk.
V
Vaulting Service
A third-party storage provider that holds metals on your behalf, typically charging storage fees.
W
Wealth Preservation
A strategy focused on protecting purchasing power over long periods rather than maximizing short-term returns.