Are you new to investing in Precious Metals? Well, we have gathered a list of 10 key terms you should know when investing in Precious Metals.
Spot – Spot is the current market price of the metal, which is always changing during global market hours (just like a normal stock changing minute-by-minute throughout the day).
Melt Value – The intrinsic worth of metal in a Precious Metal product.
Spread: The Spread is the difference between the buying price and the selling price of a product. For example, if a dealer will buy your Silver Eagle for a $1.80 premium that you purchased at a $3.50 premium, the spread is $1.70. The spread is used to measure how far the metal’s price needs to move to create an investment gain.
Troy Ounce: The troy ounce is the most common unit of measurement for Precious Metals and is the current standard for bullion pricing and trading. It is slightly heavier than the avoirdupois, or common “kitchen,” ounce, with 1 Troy ounce being equal to 1.097 avoirdupois ounces.
Ask – The price at which a dealer offers to sell a product.
Bid – The price at which a dealer is willing to buy a product.
Bar – Bars and rounds are produced by refiners and other private companies and generally carry a lower premium over the value of the Precious Metal content.
Bullion – Bullion refers to Precious Metals products that are manufactured in a bar, round or ingot form by a refiner or private producer and usually having a purity of at least 99.5% or more.
Bullion Coin – A legal tender coin, produced by a sovereign government, the value of such coin primarily depends on its Precious Metal content rather than it legal tender or numismatic value.
Collectible Coin – Coins that are of interest to collectors for the numismatic value they carry in addition to their Precious Metal content. The value may be determined by the coin’s condition, age, rarity, artistry and more.
It shouldn’t be difficult to start a Precious Metals Investment Portfolio. Our account managers are available to assist you. Call us at 800-375-9006 or visit us at APMEX.com