Precious metals terms, explained
Use this guide when comparing bullion products, reading market prices or discussing a refining lot with Gold Stock. Product terms and transaction terms should be confirmed before you buy or sell.
Bullion
Physical precious metal held as a bar, coin or round. Products differ by metal, weight, purity, brand and condition.
Spot price
A market reference price for a metal at a point in time. A bullion transaction can also include a product premium, a dealer spread and other agreed costs. See our indicative live prices.
Bid and ask
The bid is a quoted buying price; the ask is a quoted selling price. Check the direction of the transaction and the product before comparing a quote with spot.
Troy ounce and kilogram
Precious metals commonly use the troy ounce, equal to 31.1034768 grams. One kilogram is approximately 32.1507466 troy ounces. A kilogram spot value may be calculated from a troy-ounce reference, while a specific bar has its own transaction price.
Purity and fineness
Purity describes the proportion of precious metal in a product. A mark such as .9999 indicates 99.99% fine metal by mass, subject to the product specification and verification.
Karat
A measure of gold content in an alloy: 24 karat is the reference for pure gold, while 18 karat is 18 parts gold out of 24 by mass. Jewellery weight can include stones and other non-gold components.
Premium and spread
The premium is an amount above a metal reference price for a particular product. The spread is the difference between buying and selling quotes. Both can vary by product, quantity and market conditions.
Assay and XRF
An assay estimates or determines metal content. X-ray fluorescence (XRF) can provide a non-destructive surface reading; its suitability depends on the material. Our refining team can discuss sampling and assay arrangements for a specific lot.
Melt value and settlement
Melt value is an estimate based on recoverable metal content and a reference price. Final refining settlement depends on verified weight, assay results, applicable charges and agreed terms.
Looking for a particular bar or coin? Explore gold bars and silver bars, or ask our Canadian team for product details.