7 Pieces Of Precious Metal Terminology All Buyers Should Know

 

If you are attracted to the mysterious and glamorous world of precious metals and plan to invest a portion of your portfolio, understanding the language used is a critical aspect. Every commodity has its own unique terms that have evolved over the centuries. While there are indeed many in the precious metal sector, we’ve selected a few that are really important. 

1.      Ingot - Basically a small bar, an ingot is a form for storing and transporting gold and other precious metals and there would be stamps to identify the purity and origin. The 100g ingot is the most common small bar used with gold, ten of which would equal 1kg, or 32.15 troy ounces. 

2.      Bullion -It's a collective noun to describe bars of gold or other precious metal. If you wish to buy or sell gold, you would contact a reputable gold bullion dealer, who would have offices near you. Every gold investor needs to forge an alliance with a known bullion dealer and using their website, you can check the spot price and buy and sell at any moment. 

3.      Spot Price - The price of gold at any given time is called the spot price, which changes several times a day. When you login with your bullion dealer’s website, the spot price is always visible and account holders can buy and sell at the click of a mouse. You can also approach scrap gold buyers Adelaide or your city has. 

4.      Karat - Not to be confused with carat, (weight of diamonds), karat is used to describe the fineness or purity of gold. One karat represents 1/24 of the whole; so 9k gold is 9 parts gold in 24, 24k is therefore pure gold, which is quite soft and malleable. Other measures include 9k, 14k, 18k and 22k, with the lower grades used for jewellery. A typical 1kg bar of gold would be 99.999% pure, which would be stamped on the bar. 

5.      Assay - This is an official assessment of the gold.The assay guarantees that the bar contains the purity and amount stated. This is a globally recognised system for most precious metals and any bullion dealer would wish to see that the bar has been assayed. 

6.      Spread - The spread is the difference between the buying and selling price and may be expressed in dollars or as a percentage. A gold coin with a buying price of $1,000 and a selling price of $800 has a spread of $200, or 20%. 

7.      Paper Gold - This is a form of ownership without taking physical possession of the precious metal. ETF, gold mining stocks and paper gold certificates are frequently used, as this facilitates the quick trading of precious metals. 

The most important ally for any gold investor is an established gold bullion dealer, who would have offices nearby and who will help you take physical possession of your gold.