Legal Tender: The coin or currency which the national monetary authority declares to be universally acceptable as a medium of exchange; acceptable for instance in the discharge of debts.
Liquidity: The quality possessed by a financial instrument of being readily convertible into cash without significant loss of value.
London Fix: The twice-daily bidding session in London of the five major gold traders, at which the gold price is fixed or set. The London Fix provides the basis for many gold contracts worldwide.
Numismatic: Coins that are valued for their rarity, condition and beauty beyond the intrinsic value of their gold content. Generally, premiums for numismatic coins are higher than for bullion coins.
Option: The right, (not the obligation), to buy or sell a commodity or a financial security on a specified date in the future.
Pennyweight: An American unit of weight for gold. Twenty pennyweights equal one ounce.
Premium: The amount by which the market value of a gold coin exceeds the actual spot value of its gold content. Part of the premium is recovered by the seller at resale.
Restrike: A modern replica of previously issued coins. Governments and their mints can choose to “restrike” a previous issue rather than introduce new coinage.
Spot Price: Sometimes referred to as the cash price. The current price in the physical market for immediate delivery of gold.
Spread: The difference between Bid (the price a buyer is prepared to pay for gold) and Ask (the price a seller offers) prices.
Troy Ounce: A unit of weight, equal to about 1.1 avoirdupois (ordinary) ounces. The word ounce when applied to gold, refers to a troy ounce
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