• A-E
• F-N
• O-Z

A

Arbitrage: simultaneous buying and selling a commodity in different markets to take advantage of price differentials.

Ask: the price at which a dealer offers to sell.

Assay: a test to ascertain the fineness and weight of a precious metal.

Austrian 100 Corona: restrike bullion gold coin containing .9802 ounce of gold.

Avoirdupois: a system of weights for commodities except precious metals, stones, and drugs. One avoirdupois ounce equals 28.35 grams or 437.50 grains.

B

Backwardation: see Inverted market.

Bar: a mass of metal cast or shaped into a convenient shape. In the precious metals industry, the words bar and ingot are used interchangeably.

Bear market: a market in which the primary trend is down.

Bid: the price at which a dealer is willing to buy.

Boiler room: an enterprise that uses high pressure sales tactics, false or misleading information, and scare tactics, generally over the telephone, to sell overpriced or worthless investments to unsophisticated investors.

BU: brilliant uncirculated, used to describe a coin in new condition.

Bullion: precious metals in the form of bars that are at least 99.5% pure.

Bullion coin: a coin with a symbolic face value but trades at a price relative to its intrinsic value.

Bull market: a market in which the primary trend is up.

C

Call: the right, but not an obligation, to buy a commodity or a financial security on a specified date in the future.

Canadian Maple Leafs: modern bullion coins minted by the Royal Canadian Mint.

Cash market: see spot market.

Centenario: see Mexican 50 Peso.

Chameleon: a broker or dealer who changes his position on an investment to what he thinks will cause an investor to enter into a transaction.

Coin: a stamped piece of metal of a known weight and fineness issued for commerce.

Coin of the realm: a legal tender coin issued by a government, meant for general circulation.

Comex: one of the world's major commodities futures exchanges where gold and silver are traded. The Comex is in New York City and is a division of the New York Mercantile Exchange.

Commemoratives: legal tender coins or medallions usually minted of gold or silver to commemorate themes, events, places, or people.

Commodity pool: a venture, usually a limited partnership, in which investors contribute funds for the purpose of buying commodities.

Correction: a decline in prices following a rise in a market.

Contango market: a normal futures market in which prices are higher in the succeeding delivery months than in the nearest delivery month.  Opposite of backwardation.

Cover: to offset a short futures or options position.

D

Derivative: a financial instrument derived from a cash market commodity, futures contract, or other financial instrument.  Derivatives can be traded on regulated exchanges or over-the-counter.  Futures contracts, for example, are derivatives of physicals commodities, and options on futures are derivatives of futures contracts.

Double Eagles: U.S. $20 gold coins used as legal tender 1850-1933. Double Eagles contain .9675 ounce of gold and come in two designs: the St. Gaudens (Walking Liberty) and the Liberty.

 

E