Every investment sector has its own set of terminology and precious metals is no exception. Your investment consultant should be able to provide you with the guidance you need, but when doing research on your own these precious metals terms to know should help give you a solid foundation.
Ask: the coin or bar’s selling price
Bid: the coin or bar’s buyback price
Coin Grading: the system used to describe the condition of the coin (typically on a low-to-high scale of 1-70)
Markup: the amount to a coin or bar’s cost to reach the selling price
Melt Value: the value of a coin or bar based on the precious metal content then multiplied by the price of the metal.
Obverse: the front or “head” side of the coin
Premium: the amount charged above a coin or bar’s melt value
Reverse: the back or “tail” side of a coin
Spread: the difference between what a coin or bar’s asking price and the bid price
Spot Price: The price paid for a precious metal with immediate delivery (may be referred to as the ask, selling, bid or buyback price)
Lern more about gold and silver investments and terminology by contacting an experienced consultant at SBC. Call: 1 (888) 812-9892.