Karat Chat

Precious Metals Terms Defined-National Coin Week

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.

Source: www.goldline.com

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