Gold glossary: 92 terms explained

Use the letters to jump to a term. Each definition is short; where we have a full guide, the link takes you there. Terms are written in UK English, with US spellings such as karat noted where they differ.

0-9

1099-B

US tax form a dealer files when you sell certain reportable amounts of gold back to it, such as .995+ bars totalling 1 kilo or 25 or more 1oz Krugerrands or Maple Leafs. More on 1099-B.

22 carat

Gold that is 22 parts in 24 pure, written 916 or 916.7 (91.67%). Used for the American Eagle, Krugerrand and Sovereign. More on 22 carat.

24 karat

Pure gold: all 24 parts are gold. In practice it means 999 or 999.9 fineness. More on 24 karat.

400 oz bar

Everyday name for a London Good Delivery bar, which must contain 350 to 430 fine troy ounces of gold. More on 400 oz bar.

999 gold

Gold at least 99.9% pure. 999.9, or "four nines", means at least 99.99%. More on 999 gold.

A

Allocated gold

Specific, identified bars or coins held in a vault in your name. The vault cannot lend them out, and they are not on its balance sheet. More on Allocated gold.

Alloy

A mix of gold with other metals such as copper or silver, used to make gold harder or change its colour. 9, 14, 18 and 22 carat gold are alloys. More on Alloy.

American Buffalo

The US Mint's 1oz gold bullion coin, made of .9999 fine (24 karat) gold. More on American Buffalo.

American Eagle

The US Mint's main gold bullion coin, struck to the 22 karat standard (91.67% gold) in 1, 1/2, 1/4 and 1/10 oz sizes. More on American Eagle.

Ask price

The price a dealer will sell to you at. It is always above the spot price. More on Ask price.

Assay

A test that measures exactly how much gold a piece of metal contains. More on Assay.

Assay card

The sealed, tamper-evident card a small gold bar is sold in, showing its maker, weight, fineness and usually a matching serial number. More on Assay card.

Assay office

An independent body that tests and hallmarks precious metal. The UK has four: London, Birmingham, Sheffield and Edinburgh. More on Assay office.

B

Bid price

The price a dealer will pay you when you sell. Also called the buyback price. More on Bid price.

Brilliant Uncirculated (BU)

The standard finish of newly made bullion coins: never used in circulation, but not specially polished like a proof coin. More on Brilliant Uncirculated.

Britannia

The Royal Mint's gold bullion coin, 999.9 fine. As UK legal tender it is free of UK Capital Gains Tax. More on Britannia.

Bullion

Gold (or other precious metal) valued mainly for its metal content, usually in the form of bars and coins. More on Bullion.

Bullion coin

A coin made to be bought for its gold, priced close to its metal value, such as the Maple Leaf or Krugerrand. More on Bullion coin.

Buyback

When a dealer buys gold back from a customer. Many dealers publish a buyback price next to their selling price. More on Buyback.

C

Capital Gains Tax (CGT)

Tax on the profit when you sell an asset for more than you paid. Applies to gold in the UK and Australia; the US and Canada have equivalent capital gains rules. More on Capital Gains Tax.

Carat (karat)

A measure of gold purity in 24ths. 18 carat is 18/24, or 75%, gold. Spelt karat in the US. More on Carat.

Cast bar

A gold bar made by pouring molten gold into a mould. Usually cheaper per ounce than a minted bar. More on Cast bar.

Certificate of authenticity

A document from a refiner or mint confirming a product's weight, fineness and, for bars, serial number. More on Certificate of authenticity.

CGT-free coins

In the UK, coins that are sterling legal tender, chiefly Sovereigns and Britannias, which HMRC treats as currency and exempts from Capital Gains Tax. More on CGT-free coins.

Collectible (US tax)

The IRS category that includes gold coins and bars. Long-term gains on collectibles are taxed at up to 28%. More on Collectible.

Common Control Mark (CCM)

An international hallmark showing a pair of scales, recognised in the UK on gold at 375, 585, 750, 916, 990 and 999. More on Common Control Mark.

Counterfeit

A fake coin or bar made to look genuine, often with a tungsten or base metal core. More on Counterfeit.

D

Date letter

An optional part of a UK hallmark showing the year an item was hallmarked. More on Date letter.

Depository

A professional high-security vault that stores gold for customers, usually with insurance and audits. More on Depository.

Doré

A semi-pure bar of gold and silver produced at a mine, sent to a refiner to be purified.

Double Eagle

The historic US $20 gold coin, 90% gold, last made in 1933. More on Double Eagle.

E

Exemption weight

The weight below which an item need not be hallmarked in the UK: 1 gram for gold. More on Exemption weight.

F

Face value

The legal tender value printed on a coin, usually far below the value of its gold. A 1oz Britannia has a face value of £100. More on Face value.

Fine gold

The pure gold content of a coin or bar, ignoring any other metals mixed in. More on Fine gold.

Fine weight

The weight of pure gold in an item, usually in troy ounces. A 1oz 22 carat coin has a fine weight of 1 troy oz. More on Fine weight.

Fineness

Purity in parts per thousand, such as 999.9, 916.7 or 750. More on Fineness.

Fractional coin

A coin smaller than one ounce, such as a 1/10 oz Eagle. Higher premium per ounce than a 1oz coin. More on Fractional coin.

G

Gold ETF

An exchange-traded fund that tracks the gold price. You own shares in a fund, not a specific coin or bar. More on Gold ETF.

Gold IRA

A US self-directed retirement account that holds approved physical gold through a custodian. More on Gold IRA.

Gold-filled (GF)

A thick layer of gold bonded to a base metal core. Contains some gold, but far less than solid gold. More on Gold-filled.

Gold-plated (GP)

A very thin coat of gold over base metal. Stamps include GP, HGE and EP. Worth little as scrap. More on Gold-plated.

Gold-to-silver ratio

How many ounces of silver it takes to buy one ounce of gold. More on Gold-to-silver ratio.

Good Delivery

The LBMA standard for large bars traded in London: 350 to 430 fine oz, at least 995.0 fine, from an accredited refiner. More on Good Delivery.

Gram

Metric unit of weight. A troy ounce is 31.1035 grams. More on Gram.

H

Hallmark

A set of marks applied by an independent assay office after testing, showing who sponsored the item, its fineness and where it was tested. More on Hallmark.

Hallmarking Act 1973

The UK law requiring most gold items over 1 gram to be hallmarked before being sold as gold. Coins and bullion are exempt. More on Hallmarking Act 1973.

I

Insured delivery

Shipping where the dealer's insurance covers the gold until you sign for it. More on Insured delivery.

Investment gold (UK VAT)

Gold that is exempt from UK VAT under HMRC Notice 701/21: bars of at least 995 fineness and qualifying coins. More on Investment gold.

J

Junk gold

Informal name for gold valued only for its metal, such as broken jewellery or worn common coins. More on Junk gold.

K

Kangaroo

The Perth Mint's 999.9 gold bullion coin, Australian legal tender. More on Kangaroo.

Kilo bar

A 1 kilogram gold bar, containing about 32.15 troy ounces. More on Kilo bar.

Krugerrand

South Africa's 22 carat gold bullion coin, containing one troy ounce of fine gold in the 1oz size. More on Krugerrand.

L

LBMA

The London Bullion Market Association, the trade body for the London gold market. It runs the Good Delivery lists and oversees the LBMA Gold Price. More on LBMA.

LBMA Gold Price

The benchmark gold price set in London twice each business day, used in many contracts. More on LBMA Gold Price.

LBMA-accredited refiner

A refiner on the LBMA Good Delivery list. Its bars are widely trusted and easy to sell. More on LBMA-accredited refiner.

Legal tender

Coins issued by a government as official money, such as the Sovereign or Maple Leaf. Their face value is symbolic. More on Legal tender.

Liquidity

How easily something can be sold quickly at a fair price. Popular coins and bars are highly liquid. More on Liquidity.

Loco London

Gold held in London vaults and traded in the London market. More on Loco London.

M

Maple Leaf

The Royal Canadian Mint's 999.9 gold bullion coin. More on Maple Leaf.

Melt value

What the gold in an item is worth at the spot price, before any premium or dealer margin. More on Melt value.

Millesimal fineness

Purity expressed in parts per thousand, such as 750 for 18 carat. More on Millesimal fineness.

Mintage

The number of coins or bars of one design made in a given year or series. More on Mintage.

Minted bar

A gold bar cut from a rolled strip and struck with a design, usually sold in an assay card. More on Minted bar.

N

Numismatic coin

A coin valued for rarity, age or condition as well as its gold. Often sells well above melt value. More on Numismatic coin.

P

PCGS and NGC

The two largest US coin grading companies. They grade a coin's condition and seal it in a plastic slab. More on PCGS and NGC.

Pennyweight (dwt)

A small unit of weight used in the jewellery trade: one twentieth of a troy ounce, about 1.555 grams. More on Pennyweight.

Philharmonic

The Austrian Mint's 999.9 gold bullion coin. More on Philharmonic.

Premium

The amount you pay above the value of the gold at spot, covering making, distribution and the dealer's margin. Usually shown as a percentage. More on Premium.

Price lock

The period a dealer holds a quoted price while you complete payment. More on Price lock.

Proof coin

A specially struck collector coin with mirror-like surfaces. Usually costs far more than its gold value. More on Proof coin.

Q

Queen's Beasts

A Royal Mint series of gold and silver bullion coins featuring ten heraldic beasts. More on Queen's Beasts.

R

Refiner

A company that purifies gold and makes bars, such as PAMP, Valcambi or The Perth Mint. More on Refiner.

Round-trip cost

The total cost of buying and later selling: the premium paid plus the discount to spot when you sell. More on Round-trip cost.

RRSP and TFSA gold

Canadian registered accounts that can hold certain gold investments, subject to CRA rules. More on RRSP and TFSA gold.

S

Safe deposit box

A locked box rented inside a bank or private vault. Contents are usually not insured by the provider. More on Safe deposit box.

Scrap gold

Any gold sold to be melted down, such as broken jewellery or dental gold. More on Scrap gold.

Self-directed IRA

A US retirement account that lets you choose alternative assets, including approved physical gold. More on Self-directed IRA.

Serial number

A unique number stamped on a bar, and printed on its assay card or certificate, so the two can be matched. More on Serial number.

SIPP and gold ISA

UK tax wrappers. Some gold funds can be held in them; rules on physical gold differ. Some such products are regulated by the FCA. More on SIPP and gold ISA.

SMSF

An Australian self-managed super fund, which can hold physical gold under strict ATO rules. More on SMSF.

Sovereign

The British 22 carat gold coin, containing 7.3224 g (0.2354 troy oz) of fine gold. Free of UK Capital Gains Tax. More on Sovereign.

Sponsor's mark

The part of a UK hallmark showing who submitted the item for testing. More on Sponsor's mark.

Spot price

The live wholesale price for one troy ounce of pure gold. Dealers price products from it. More on Spot price.

Spread

The gap between a dealer's selling (ask) and buying (bid) prices. More on Spread.

T

Tola

A traditional South Asian unit of weight, about 11.66 grams, still used for gold in some markets. More on Tola.

Troy ounce

The unit used for gold: 31.1035 grams, about 10% heavier than an ordinary ounce. More on Troy ounce.

U

Unallocated gold

A claim on a share of a pool of gold. You do not own specific bars, and you are an unsecured creditor if the provider fails. More on Unallocated gold.

V

VAT on gold

UK sales tax. Investment gold is exempt; jewellery and most silver carry 20% VAT. More on VAT on gold.

Vaulted gold

Gold stored for you in a professional vault rather than at home. More on Vaulted gold.

VERISCAN

PAMP Suisse's phone app that checks a bar's surface against a record made when it was produced. More on VERISCAN.

W

Wire discount

A lower price many dealers give for bank wire, check or bank transfer payment instead of a card. More on Wire discount.

X

XAU

The international currency code for one troy ounce of gold, used in price feeds such as XAU/USD. More on XAU.

Where next?

New to gold? Start with how to buy gold, then compare dealers in the US, the UK, Canada or Australia. All our explainers are in Learn, and every guide is listed in Guides.

Not financial advice. GoldVetted provides general information to help you compare options. It is not personal financial, tax or legal advice. Gold prices go down as well as up, and you may get back less than you pay. Check tax rules with the official source or a qualified adviser before you act.