Silver Coin Commerce

Ag: The chemical symbol for silver from the periodic table of elements.

ALLOY:  A mixture of two or more metals. Metals such as silver, nickel, copper and zinc are frequently mixed with gold to improve its hardness and/or change its color.  

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

ASSAY: An analysis of a metal used to determine its purity. A series of assays can be run to determine the alloys in the metal as well.

Au:  The chemical symbol for gold which is derived from “aurum”, the Latin word for gold.

BEAR MARKET:  Describes investment markets such as stock markets or metals markets in which prices are, or are soon expected to be, in decline. The opposite of a bear market is a bull market.

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

BLANK PLANCHET:   A plain metal disc made for coinage which has not yet been struck with an obverse, reverse or edge design.

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

BULL MARKET:  Describes investment markets such as stock markets or metals markets in which prices are, or are soon expected to be, on the rise. The opposite of a bull market is a bear market.

BULLION: Gold and silver in the lump, as distinguished from coin or manufactured articles, also applied to coined or manufactured gold and silver when considered simply with reference to its value as raw material.

BUST:  The head, neck, shoulders and upper chest of an image generally found on the obverse (front) of a coin.

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

COMMERCE: trade in goods and services: the large-scale buying and selling of goods and services.

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.

Cu:  The metallurgical symbol for copper.

EDGE:  The side of a coin which may be reeded, lettered or plain.

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.

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.

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.

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.

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

GOLD:  A precious yellow metallic element that is resistant to oxidation and is highly ductile and malleable. In the United States, a metal must 10 Karat gold or more to be called gold.

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

HEDGE:  protective method: a means of protection against something, especially a means of guarding against financial loss.  -a hedge against inflation.

INFLATION: an increase in the supply of currency or credit relative to the availability of goods and services, resulting in higher prices and a decrease in the purchasing power of money.

Intrinsic value:  The value of a coin’s metal content.

Junk Silver: is an informal term used in the United States, United Kingdom, Canada and Australia for any silver coin which is in fair condition and has no numismatic or collectible value above the bullion value of the silver it contains. Such coins are popular among people seeking to invest in silver, particularly in small amounts. The word “junk” refers only to the value of the coins as collectibles and not to the actual condition of the coins; junk silver isn’t necessarily scrap silver. For this site, Junk Silver will most commonly refer to  U.S. coins minted before 1965 that contain 90% silver. Any combination of 90-percent silver U.S. coins which have a face value of U.S. $1.00 contains 0.715 troy ounces of 99.9-percent silver (0.7234 troy ounces if uncirculated). In other words, a full troy ounce of 99.9-percent silver is contained in any combination of 90-percent silver U.S. coins which have a face value of US$1.40.

KARAT:  (with a “k”) A measure of gold fineness or purity. Pure gold is considered to be 24 karat. For this reason, the actual gold content of any object is the percentage relationship of its purity to 24. For example, 18 karat gold is 18kt/24kt or 75% pure gold or 750 fine.

Krugerrand:  South African gold coin Gold Krugerrands from South Africa were introduced in 1967, and dominated the gold bullion market in the U.S. from 1974 through the early 1980′s. They are struck in 22 karat gold (91.7% pure), each coin containing a full measure of pure gold, plus additional copper as an alloy. 

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.

Luster:  A frosty appearance on the surface of a coin, usually an un-circulated coin.

Luster:  A frosty appearance on the surface of a coin, usually an un-circulated coin.

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

MEDALLION or ROUND:  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.

MINT:  The place where a coin or bar was manufactured.

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 un-circulated 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.

NOMINAL FACE VALUE: Nominal value given to legal tender coins sold for their metal content. Example: the 1-oz sILVER Eagle carries a $1 face value but sells for the value of its silver content.

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

NUMISMATICS:  The study of coins, currency and medallic art.

Numismatist:  Coin collector.

OBVERSE:  The front of a coin. The device on the obverse usually consists of the image of one or more people.

Ounce:  A unit of weight. In the precious metals industry, an ounce means a troy ounce equal to 31.1035 grams.

Pennyweight:  Equals 24 grains or 1/20 of a Troy ounce.

Planchet:  A blank piece of metal used for stamping a coin or medallion.

PREMIUM: The additional cost of gold coin or bullion over and above the spot gold price. The premium includes the costs of fabrication, distribution and a minimal dealer fee. The average premium of a bullion piece at this time is 5% to 15% above spot gold. Rare coins carry an additional premium called numismatic value which is based on scarcity, quality, demand and intangible factors.

PROOF:  Refers to the manner in which a coin was minted NOT to its condition. Highly polished dies and special plainchants are used to produce coins with a mirror-like finish. A proof strike is very different from a business strike and proof coins are generally made for collectors not for normal use.

Restrike: Officially issued reproduction of a former circulating coin.

REVERSE:  The back of a coin. The device on the reverse of a coin usually consists of a country’s coat of arms or an insignia.

Short sale:  The sale of an asset for future delivery without possession of the asset sold.

Silver Eagles:  Modern 1-oz .999 fine silver bullion coins. The silver Eagle is the U.S. Mint’s silver bullion issue $1 coin, and has been made continuously since 1986.

Slabbed coins:  Coins encapsulated in plastic for protection against wear. Generally, “slabbed” coins are graded by one of the two major grading services.

SPOT GOLD PRICE:  The constantly fluctuating price of gold in unfabricated form. The closing spot price varies with markets located in numerous cities and countries throughout the world. It is recommended that one follow the spot gold close from one particular source in order to consistently gauge the fluctuations in the world markets. Commonly quoted gold markets include: New York City, Chicago, Handy and Harmon, Engelhard, Republic National Bank, London, Zurich, Paris,Frankfurt, and Hong Kong. Note that when buying gold in the United States, the price will generally be based on the prices in New York or Chicago.

SPREAD:  The difference between the buying price and the selling price of an object at the same time on the same day by the same person. If gold is purchased at $400.00 per ounce, and sold at $390.00,the spread is $10.00

Symbolic face value:  Nominal value given to legal tender coins sold for their metal content. Example: the 1-oz sILVER Eagle carries a $1 face value but sells for the value of its silver content.

TROY OUNCE:  A measure of weight. A Troy ounce is different from the ounce most Americans are accustomed to (the Avoirdupois ounce). There are 12 Troy ounces in a Troy pound, and one Troy ounce is equivalent to 1.333 Avoirdupois ounces. So, if you buy one Troy pound or twelve Troy ounces of silver, don’t expect it to weigh in at one pound on your bathroom scale, because it won’t. One troy ounce equals 31.1035 grams or 480 grains. One troy ounce equals 1.09711 avoirdupois ounce. 

Uncirculated:  A coin in new condition, sometimes said to be “Brilliant Uncirculated or BU The term is often used interchangeably with Mint State