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| Face Value |
The monetary value of an investment coin, which does not necessary correspond to its actual worth. For example, the face value of a gold American Eagle one-ounce coin is $50, but its actual worth is tied to the spot value of its gold content – a much higher value. |
| Fineness |
The purity of precious metal measured in parts per thousand. A "Good Delivery" bar contains a least 995 part pure gold and no more that 5 parts other metals or impurities. Many gold and silver bullion products, such as the original gold Maple Leaf coins are 99.99% pure gold and are often described as being struck from .9999-fine gold. |
| Fine Weight |
The weight of precious metal contained in a coin or bullion as determined by multiplying the gross weight by the fineness. |
| Fine Silver |
Pure silver. Generally 99.9% pure. |
| Futures Contract |
A contract between a buyer and seller to purchase a commodity or financial instrument at a pre-determined price in the future. These contract are most often liquidated prior to the established delivery date and are typically used more for financial risk management instead of physical supply.
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| Gold |
A soft, shiny, heavy, malleable,and highly ductile transition metal that has long been used as a store of wealth and a standard for currencies worldwide. For centuries, gold has been used in coinage, jewelery, and in countless industrial applications. |
| Gold/Silver Ratio |
The number of ounces of silver required to buy one ounce of gold at current spot prices. |
| Good Delivery |
Approved metals brands acceptable for delivery against the metals contracts. |
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| Hallmark |
A stamped impression on the surface of a precious metals bar that indicates the producer, serial number, weight, and purity of metal content. |
| Hedge |
An investment made as a strategy to mitigate risk of adverse price movements in a given asset. |
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| Intrinsic Value |
The actual value of the precious metals contained within a bullion bar or coin. |
| Inverted Market |
A futures market is said to be inverted when distant contract months are selling at a discount to nearby contract months; also known as backwardation. |
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| Karat |
A measure of the purity of gold. Pure gold is 24-karat. |
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| Legal Tender |
In the U.S., coins and paper currency that have been authorized by Congress for the payment of debts owed. This includes circulating coins and all commemorative coins. |
| Licensed Warehouse |
Warehouse that has been approved for the storage of silver or gold deliverable against a silver or gold futures contracts. |
| Licensed Weightmaster |
An organization approved by an exchange to witness and verify the weighing of silver or gold delivered against a silver or gold futures contract. |
| Liquid Market |
A market characterized by the ability to buy and sell with relative ease. |
| London Fix |
Price set each day in London by five old-line firms. The "fixing price" reflects the price at which buy and sell orders from the firms' customers' are in balance. The London Fix is an internationally recognized benchmark price for that particular moment in time.
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| Malleable |
Allowing change in form under pressure or hammering without rupture or fracture. |
| Market Value |
The total price of a bullion bar or coin inclusive of intrinsic value and any premium or discount. |
| Money Order |
Order for the payment of a specified amount of money, usually issued and payable at a bank or post office. |
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| National Futures Association (NFA) |
Futures industry trade association which promulgates rules of conduct and mediates disputes between customers and brokers. |
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