• A-E
• F-N
• O-Z

F

Face value: the legal monetary value stamped on a coin. See symbolic face value.

Fiat money: paper money made legal tender by law, although not backed by gold or silver.

Field: the open area or background on a coin.

Fineness: the purity of a precious metal measured in 1,000 parts of an alloy: a gold bar of .995 fineness contains 995 parts gold and 5 parts of another metal. Example: the American Gold Eagle is .9167 fine, which means it is 91.67% gold. A Canadian Maple Leaf has a fineness of .999, meaning that it is 99.9% pure.

Fine weight: the metallic weight of a coin, ingot, or bar, as opposed to the item's gross weight which includes the weight of the alloying metal. Example: a 1-oz Gold Eagle has a fine weight of one troy ounce but a gross weight of 1.0909 troy ounce.

Forward transaction: purchase or sale for delivery and payment at an agreed date in the future; similar to a futures contract, except that forward transactions are not subject to the standardized procedures and regulations of a commodities futures exchange.

Futures contract: an agreement made on an organized exchange to take or make delivery of a specific commodity or financial instrument at a set date in the future.

G

Gold Eagles: modern gold bullion coins.

Gold standard: a monetary system based on convertibility into gold; paper money backed and interchangeable with gold.

Good delivery: the specification that a bar of precious metal must meet in order to be acceptable for delivery at a particular exchange.

Good delivery bar: a bar of gold or silver that is acceptable for delivery against a metals contract.

Grading service: a company that grades numismatic coins. Generally, graded coins are encapsulated in plastic, a procedure called "slabbing." PCGS and NGC are the two dominant grading services in the United States.

Grain: earliest weight unit for gold. One troy ounce contains 480 grains.

Gram: the basic unit of weight of the metric system. (31.1035 grams = one troy ounce.)

H

Hallmark: mark or stamp on a bullion item that identifies the producer.

Hedge: a transaction initiated with the specific intent of protecting an existing or anticipated physical market exposure from unexpected or adverse price fluctuations.

I

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

Intrinsic value: the value of a coin's metal content.

Inverted market: a situation in which prices for future deliveries are lower than the spot price. Also known as backwardation.

J

K

Karat: a measure of the purity of a precious metal. Pure gold is 24 karat.

Kilo bar: a bar weighing one kilogram (32.1507 troy ounces).

Kilogram: 1,000 grams (32.1507 troy ounces).

Koala: Australian platinum coin, minted since 1987,.995 fine.

Krugerrand: South African gold coin.

L

Legal tender: currency in specified denominations which a creditor is compelled by law to accept as payment of a debt.

Legend: the inscription on a coin.

Liquidity: the quality of being readily convertible into cash.

London fix: two daily bidding sessions in London of five major gold firms, at which the price of gold is "fixed" or set.

Luster: a frosty appearance on the surface of a coin, usually an uncirculated coin.

M

(Canadian)Maple Leafs: modern gold, silver, and platinum coins minted by the Royal Canadian Mint.

Market value: the price at which a coin or bullion item trades.

Medallion: a round piece of metal resembling a coin but not a "coin of the realm." A medallion may be issued by a government or private mint. The Engelhard 1-oz silver prospector is a privately-minted medallion.

Mexican 50 Peso: gold coin first issued in 1921 to celebrate the 100th anniversary of Mexico's independence. The Mexican 50 Pesos in the bullion coin market normally are restrikes, minted from 1943 onward. Weight: 1.2057 troy ounce,.900 fine.

Metric ton: 1,000 kilograms or 32,151 troy ounces.

Mint mark: a letter or symbol stamped on a coin to identify the minting facility where it was struck.

Mint State: describes a coin in uncirculated condition.

Modern issues: current coins, whether struck for circulation or for sale to investors or collectors.

MS-60: the lowest grade of Mint State coins. Higher-grade coins are labeled MS-61 up to MS-70. Coins showing wear are graded below MS-60 and fall into grades from AU down to G, with G being a coin showing great wear and AU being a coin showing little wear.

N

NGC: acronym for Numismatic Guaranty Corporation of America, one of two major coin grading services in the United States.

Noble: modern platinum bullion coin issued by the Isle of Man since 1983.

Nugget: modern gold bullion coin minted by Australia, .9999 fine.

Numismatic coins: coins whose prices depend more on their rarity, condition, dates, and mint marks than on their gold or silver content.

Numismatist: coin collector.

NYMEX: the New York Mercantile Exchange, a future exchange where platinum and palladium are traded.