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)

Learn more about gold and silver investments and terminology by contacting an experienced consultant at SBC. Call: 1 (888) 812-9892.