In honor of the 95th Annual #NationalCoinWeek this week we are going to dedicate this week’s blog to posting information about #coin buying and selling. We came across this great Precious Metals Glossary the other day and figured our readers would be interested.
ASK: a coin or a bar’s selling price.
BID: a coin or a bar’s buyback price.
BULLION: platinum, gold, or silver in the form of bars, coins or ingots.
BREAK EVEN: the percentage gain a coin or bar’s bid price must increase to equal the original ask or selling price. Break Even = (Ask – Bid)/Bid
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 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 $720, the spread is $280 or 28 Percent. The spread is different from the markup.
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.
Are you a coin dealer that purchased gold from the general public? Give us a try!