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Glossary with Definitions of Precious Metals Terms
Definitions of some common precious metals terms.
ASK: the ask price is the price at which Goldline sells coins and other precious metals to clients.
BID: the bid price is the price Goldline will pay to purchase precious metals from its clients.
BULLION: platinum, gold or silver in the form of bars, coins or ingots.
MELT VALUE: the value of a coin or bar's precious metal content. The Melt Value is calculated by the amount of the precious metal multiplied by the spot price of the metal. For example, if a coin contains one ounce of gold and the spot price is $1,500 per ounce, the melt value of the coin is $1,500.
OBVERSE: the front or "heads" side of a coin.
REVERSE: the back or "tails" side of a coin.
SPREAD: the difference between a coin or bar's ask (selling) price and its bid (buyback) price. For example, if a coin's ask price is $1,000 and its bid price is $780, the spread is $220 or 22 percent. The spread is different from the markup which you can calculate by subtracting the bid price from the ask price and dividing that number by the bid price.
Spread = (Ask – Bid)/Ask
SPOT PRICE: the price paid for a precious metal based upon immediate delivery. Spot prices have an ask and bid price.