Knowledge Base
Glossary
The most important precious metals investment terms, all in one place.
Allocated Gold
Gold that is individually owned and physically segregated in a vault, assigned to a specific client. Each bar or coin…
Read more →Allocated Storage
A vault storage arrangement in which the client's specific bars or coins are set aside and cannot be lent or pooled.…
Read more →Backwardation
A market condition in which the futures price of a precious metal is lower than its current spot price. It often…
Read more →Bullion
Physical precious metal in the form of bars or coins, valued primarily by weight and purity. The term distinguishes…
Read more →Capital Gains Tax
A tax levied on the profit realised from selling an asset such as gold or silver. Tax treatment of investment metals…
Read more →Commodity
A raw material or primary good that is bought and sold in standardised quantities on organised markets. Precious metals…
Read more →Contango
A market condition in which the futures price of a precious metal is higher than the current spot price. This is the…
Read more →Diversification
An investment strategy that spreads capital across different asset classes to reduce overall risk. Precious metals tend…
Read more →Dollar Cost Averaging
An investment approach in which a fixed dollar amount is invested at regular intervals, regardless of price. This…
Read more →ETF
Exchange-Traded Fund – a listed security that tracks the price of a commodity, index, or basket of assets. Gold ETFs…
Read more →Face Value
The legal tender denomination stamped on a bullion coin (e.g. $50 for a US Gold Eagle). The face value is always far…
Read more →Fineness
The purity of a precious metal, expressed in parts per thousand (e.g. 999.9). Investment-grade gold must be at least…
Read more →Forward Contract
An agreement to buy or sell a specific quantity of a precious metal at a predetermined price on a future date. Used by…
Read more →Gold Account
Goldtresor's service for buying and storing physical precious metals on behalf of clients. Purchased metal is held in…
Read more →Gold Bar
Cast or pressed investment gold in a defined weight, from 1 gram to 400 troy ounces. Larger bars generally carry lower…
Read more →Gold Coin
A legal tender coin struck by a sovereign mint from high-purity gold. Leading investment coins include the American…
Read more →Good Delivery
The LBMA standard for large-format gold and silver bars traded on the London interbank market. A Good Delivery gold bar…
Read more →Hedging
A risk management strategy in which an offsetting position is opened to protect against adverse price movements in an…
Read more →Inflation
A sustained rise in the general price level that erodes the purchasing power of money. Gold has historically served as…
Read more →Karat
A unit for measuring gold purity based on 24 parts: 24-karat gold is pure, 18-karat is 75% gold. In the US, karat is…
Read more →LBMA
London Bullion Market Association – the global authority for the over-the-counter (OTC) precious metals market. It sets…
Read more →Liquidity
How quickly and easily an asset can be converted to cash near its market price. Investment gold is one of the most…
Read more →Loco London
The standard delivery basis for gold and silver traded on the London OTC market, meaning metal is settled in vaults…
Read more →Numismatic Coin
A coin whose value is primarily derived from rarity, condition, and historical interest rather than its metal content.…
Read more →Option
A financial contract giving the holder the right, but not the obligation, to buy or sell a precious metal at a…
Read more →Palladium
A platinum-group metal (Pd) whose demand is driven primarily by automotive catalytic converter manufacturing. Available…
Read more →Physical Gold
Tangible gold in the form of bars, coins, or wafers that the investor directly owns. Unlike paper-based gold…
Read more →Platinum
A rare, silver-white metal (Pt) valued for both industrial and investment use. Harder and denser than gold, its price…
Read more →Portfolio
The total collection of assets held by an investor. Precious metals, due to their low correlation with other asset…
Read more →Precious Metal
A rare, naturally occurring metallic element with high economic value: gold, silver, platinum, palladium, and other…
Read more →Premium
The amount paid above the spot price for a physical metal product, covering minting, refining, distribution, and dealer…
Read more →Real Return
The nominal investment return adjusted for inflation. Gold's appeal increases when real returns on competing assets…
Read more →Refinery
A facility that purifies raw precious metals to investment-grade fineness and casts them into standardised bars.…
Read more →Silver
A bright white metal (Ag) used both as an investment asset and in industrial applications. Silver prices tend to be…
Read more →Spot Price
The current market price for immediate delivery of a precious metal, quoted per troy ounce in US dollars. The global…
Read more →Spread
The difference between the dealer's selling (ask) price and buying (bid) price, usually expressed as a percentage. A…
Read more →Troy Ounce
The standard unit of weight for precious metals, equal to 31.1034768 grams. It originates from the medieval trading…
Read more →Unallocated Gold
A form of gold ownership in which the holder has a general claim on a pool of metal rather than specific bars. While…
Read more →Vault Storage
Professional, high-security storage of physical precious metals in accredited vaults. Goldtresor offers allocated vault…
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