Precious Metals Buyer’s Reference Guide

Investing in precious metals can be a rewarding way to diversify your portfolio and safeguard your wealth. To navigate the market effectively, it’s crucial to understand the key terms associated with buying gold, silver, platinum, and palladium. This guide provides clear definitions to empower your investment decisions.

Key Terms and Definitions

  • Bullion: Precious metal in bulk form, valued by weight and typically cast as bars. Metals include gold, silver, platinum, and palladium.
  • Round: A type of bullion coin that is not legal tender and is often produced by private mints. Rounds feature various designs and are primarily valued for their metal content.
  • Bar: Rectangular pieces of precious metal. Bars can vary in weight and size, and like rounds, are valued for their metal content.
  • Ingot: A piece of relatively pure material, usually metal, that is cast into a shape suitable for further processing. Bars and ingots are often used interchangeably in the context of precious metals.
  • Art: Precious metals crafted into artistic pieces. These can include decorative items, specialty coins, or other collectibles that carry value beyond the metal’s weight.
  • World Coins: Coins minted outside the United States, often issued by sovereign governments and collected for their numismatic value, design, and metal content.
  • US Coins: Coins minted by the United States Mint, including both circulating currency and collectible items like proof sets and commemorative coins.
  • American Gold Eagle: The official gold bullion coin of the United States, available in various denominations and containing a specified weight of gold content.
  • American Silver Eagle: The official silver bullion coin of the United States, containing one troy ounce of 99.9% pure silver.
  • 1 Troy Ounce: A unit of measure for precious metals, equivalent to approximately 31.1035 grams.
  • 1/2 Troy Ounce: Half of a troy ounce, equivalent to approximately 15.5517 grams.
  • 31.1035 Grams in a Troy Ounce: The exact weight of a troy ounce in grams.
  • 1,000 Grams in 1 Kilo: Equivalent to approximately 32.1507 troy ounces.

Pricing Terms

  • Spot Ask Price: The current market price at which a particular precious metal can be bought.
  • Spot Bid Price: The current market price at which a particular precious metal can be sold.
  • Premium: The cost over the spot price of a metal, covering manufacturing, distribution, and dealer profit.

Additional Considerations

  • Insured Handling: Shipping method that includes insurance to protect the buyer’s investment against loss or theft during transit.
  • Copper: Though not a primary focus, copper items are popular for gifting or as souvenirs due to their aesthetic appeal and affordability.

Metal Types

  • Silver, Gold, Platinum, Palladium: The primary precious metals traded and collected for investment, each with unique properties and market values.
  • Copper: A less commonly traded metal but valued in certain contexts for its beauty and practical use in gifting and souvenirs.

Understanding these terms is essential for anyone looking to invest in precious metals. Whether you’re buying gold, silver, platinum, or palladium, knowing the specifics can help you make informed decisions and optimize your investment strategy.