Bullion refers to precious metals such as gold, silver, platinum, and palladium in the form of bars, ingots, or coins. These metals are valued by weight and purity rather than their face value as currency. Bullion is typically bought and sold for investment purposes, providing a tangible asset that acts as a hedge against inflation and economic instability.
Numismatic coins are collectible coins that derive their value from factors beyond the metal content, such as rarity, historical significance, condition, and demand among collectors. These coins often have a premium value compared to their bullion counterparts due to their unique characteristics and appeal to collectors.
A mint is a facility where coins are produced under the authority of a government. Mints are responsible for manufacturing bullion coins, commemorative coins, and circulating currency. Examples of well-known mints include the United States Mint, the Royal Canadian Mint, and the Perth Mint.
The spot price is the current market price at which a particular precious metal can be bought or sold for immediate delivery. It is a critical benchmark used in the pricing of bullion products. The spot price fluctuates throughout the trading day based on supply and demand dynamics in global precious metals markets.
An assay is a test conducted to determine the purity and composition of a precious metal. This certification process is essential for ensuring the authenticity and value of bullion products. An assay can be performed by an official mint, a private mint, or an independent assay office.
A troy ounce is a unit of weight used specifically for precious metals. One troy ounce is equivalent to approximately 31.1035 grams, which is slightly heavier than a standard ounce (28.3495 grams). The troy ounce has been the standard measurement for precious metals for centuries and is crucial in the pricing and trading of bullion.
The premium is the amount by which the price of a bullion coin or bar exceeds the spot price of the metal it contains. This markup covers manufacturing costs, distribution, and dealer margins. Premiums can vary based on factors such as product demand, minting quality, and market conditions.
A proof coin is a high-quality coin struck using a special minting process that involves multiple strikes and highly polished dies. This process produces coins with sharp details and a mirror-like finish. Proof coins are typically produced in limited quantities and are highly sought after by collectors due to their superior craftsmanship and aesthetic appeal.
