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. The ask price is also known as the selling price and includes a premium over the metal content of the product. The premium varies based on the specific item sold. This means some forms of precious metals, such as numismatic coins will typically have a greater premium than others, such as bullion.

BID: the bid price is the selling price at which a client may sell precious metals and numismatics, and is often based on the metal content of the product.

BULLION: platinum, gold or silver in the form of bars, coins or ingots.

BREAK EVEN: the increase in the bid price required to compensate for the spread and any other costs associated with owning the precious metals and numismatics (such as storage) before a client can realize a profit.

Break Even = (Ask – Bid)/Bid

MELT VALUE: the value of a coin or bar. The Melt Value is calculated by the amount of 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.

PREMIUM: the amount charged above a coin or bar’s melt value.

REVERSE: the back or "tails" side of a coin.

SPREAD: the spread refers to the difference between a precious metal or numismatic's ask price (i.e., the client's purchase price and Goldlines's selling price) and its bid price (i.e., the clients selling price). The spread is calculated by subtracting the bid price from the ask price and dividing the difference by the ask price.

Spread = (Ask – Bid)/Ask

SPOT PRICE: a market indicator that essentially reflects the price paid for a precious metal based upon immediate delivery.  It can be construed as the theoretical value of the metal before converted into a bar or coin.