Precious Metals Glossary
Master the language of precious metals investing with our comprehensive guide to terms, definitions, and concepts.
🪙 Gold & Precious Metals Terms
Spot Price
The current market price for one ounce of gold, silver, platinum, or palladium.
Premium
The amount charged above the spot price for coins or bars — this covers minting, handling, and profit margins.
Bid/Ask Spread
The difference between the dealer's buy price and sell price; smaller spreads usually mean more liquid products.
Bullion
Precious metals in bar or coin form valued primarily by metal content, not collectibility.
Numismatic Coins
Coins valued more for rarity, age, or condition than for metal content.
Buyback Policy
A company's agreement to repurchase metals from clients — not guaranteed, but a liquidity option.
Purity
The measure of how much pure metal is in a coin or bar (e.g., .9999 fine gold = 99.99% pure).
📈 Economic & Investment Terms
Inflation
The rise in prices that reduces purchasing power — historically a key driver for gold demand.
Deflation
The opposite of inflation; when prices fall, often signaling economic weakness.
Recession
A period of economic decline (usually two quarters of negative GDP growth) that often pushes investors toward gold.
Diversification
The strategy of spreading investments across asset types to reduce risk — gold is a non-correlated asset.
Hedge
An investment made to protect against adverse price movements; gold is considered a hedge against inflation and currency risk.
Safe Haven Asset
A type of investment (like gold) that tends to retain or increase value during market volatility.
Monetary Policy
Central bank actions (like interest rate changes) that influence inflation and the strength of the U.S. dollar.
Fiat Currency
Government-issued money not backed by a physical commodity — the value comes from trust in the issuer.
🧾 IRA & Retirement Terms
Self-Directed IRA (SDIRA)
A retirement account that allows alternative assets like physical gold and silver.
Custodian
A regulated entity that holds and administers IRA assets on behalf of investors.
Rollover
Moving funds from a 401(k) or another IRA into a new IRA without incurring taxes or penalties.
Transfer
A tax-free movement of assets between IRA custodians.
IRS-Approved Metals
Precious metals that meet minimum fineness standards for IRA eligibility (e.g., .995 gold, .999 silver).
Required Minimum Distribution (RMD)
The minimum amount you must withdraw from certain IRAs each year after age 73.
Storage (Depository)
The secure facility where IRA metals are held — typically segregated (individual) or non-segregated (pooled).
💡 Market Sentiment & Currency Terms
US Dollar Index (DXY)
Measures the dollar's strength against other major currencies — gold often moves inversely.
Interest Rates
The cost of borrowing money — when rates rise, gold may dip short-term, but remains stable long-term.
Liquidity
How easily an asset can be converted to cash without losing value.
Volatility
The degree of variation in trading prices — gold can act as a stabilizer in volatile markets
Ready to Start Your Precious Metals Journey?
Now that you understand the terminology, let our experts guide you through your investment decisions.