Gold and silver terms, in plain English

A

Allocated storage

Metal stored in your name, with specific bars or coins set aside as yours. The opposite of pooled storage, where you own a share of a larger pile.

Assay card

A sealed card or package that holds a bar and certifies its weight and purity. Keep it sealed: an opened assay card can lower what a buyer will pay. How to tell if gold is real →

B

Bank wire

Money sent directly from your bank to the dealer. It’s one of the cheapest ways to pay, because dealers usually charge more for credit cards. Cheapest place to buy gold online →

Bid and ask

The bid is what a dealer will pay you for metal; the ask is what they charge to sell it to you. The gap between them is the spread.

Bullion

Gold or silver valued for its metal content rather than rarity, such as standard coins, bars and rounds. Bullion usually carries the lowest premiums. Gold coins vs. bars →

Buyback

When a dealer or Gold IRA company buys your metal back. Ask for the buyback price in writing before you buy, because it decides what you get when you sell. Gold IRA rankings →

C

Collectible (numismatic) coin

A coin priced for rarity, condition or history, not just its gold. Markups are much higher than bullion, and resale value is harder to predict. Best gold coins for beginners →

Custodian

The IRS-approved company that holds and administers a Gold IRA. The custodian, not the gold company, is legally in charge of the account. Gold IRA rollover guide →

D

Depository

A secure, insured vault that stores the metal in a Gold IRA. IRA metal must be kept at an approved depository, not at home. Gold IRA rollover guide →

Direct transfer

Moving retirement money straight from one custodian to another without it passing through your hands. It’s the safest way to fund a Gold IRA without taxes or penalties. Gold IRA rollover guide →

E

E-check (ACH)

A payment pulled electronically from your bank account. Like a wire, it usually costs less than paying by card, but it can take a few days to clear.

F

Fineness

Purity shown as parts per thousand. 999.9 fineness means 99.99% pure. Gold value by purity →

G

Gold IRA

A self-directed retirement account that holds physical gold and other approved metals instead of stocks or funds. It keeps IRA tax benefits but costs more each year than a regular IRA. Gold IRA rankings →

Gold-to-silver ratio

How many ounces of silver it takes to buy one ounce of gold. Some buyers watch it to decide which metal looks cheaper relative to the other. Gold vs. silver →

Graded coin

A coin sealed in a plastic holder by a grading service with a condition score. Grading matters for collectors; for bullion buyers it mostly adds cost.

I

IRS-approved metal

Metal that meets IRS purity rules for an IRA: generally 99.5% for gold (with exceptions such as the American Gold Eagle), 99.9% for silver and 99.95% for platinum and palladium. Gold IRA rollover guide →

J

Junk silver

Pre-1965 U.S. dimes, quarters and half dollars, which are 90% silver. The name means they’re valued for their silver, not their condition. Best silver coins to buy →

K

Karat

Gold purity measured out of 24. 24k is pure gold, 18k is 75% gold, 14k is about 58.3% and 10k is about 41.7%. Gold value by karat →

M

Markup

The difference between what you pay and the value of the metal. In a Gold IRA, the markup on the metal is often the biggest cost and the least advertised. Gold IRA fees explained →

Melt value

What the precious metal in an item is worth at today’s spot price. Buyers usually pay somewhat less than melt value. Gold value calculator →

P

Pennyweight (dwt)

A jewelry weight equal to 1/20 of a troy ounce, about 1.555 grams. Gold value calculator →

Premium

The amount a coin or bar costs above the spot price. It covers minting, distribution and the dealer’s margin. What’s a fair premium? →

Proof coin

A specially struck collector version of a coin with a mirror-like finish. Proofs cost much more than standard bullion coins of the same weight. Best gold coins for beginners →

R

Required minimum distribution (RMD)

The amount the IRS requires you to start withdrawing from a traditional IRA each year once you reach a set age. In a Gold IRA it can be taken as cash or as metal. Gold IRA rollover guide →

Rollover

Moving money from one retirement account to another. An indirect rollover sends the money to you first and has strict deadlines, so a direct transfer is usually safer. Gold IRA rollover guide →

Round

A coin-shaped piece of bullion made by a private mint. It isn’t legal tender, so it usually costs a little less than a government coin. Gold coins vs. bars →

S

Segregated storage

Storage where your metal is kept physically apart from other customers’. It usually costs more than shared (commingled) storage. Gold IRA fees explained →

Self-directed IRA

An IRA that can hold assets beyond stocks and funds, such as physical metal. A Gold IRA is a type of self-directed IRA. Gold IRA rankings →

Sovereign coin

A legal-tender coin made by a national mint, such as the American Gold Eagle or Canadian Maple Leaf. These are the easiest coins to buy and resell. Best gold coins for beginners →

Spot price

The current wholesale price of one troy ounce of pure metal. It changes throughout every trading day and is the starting point for every coin and bar price. Gold price today →

Spread

The gap between what a dealer charges you and what they’ll pay you back. A smaller spread means you lose less when you sell.

Sterling silver

Silver that is 92.5% pure, common in jewelry and silverware. Silver value calculator →

Storage fee

A yearly charge for keeping metal in a vault. Gold IRAs always have one, usually billed by the depository or custodian. Gold IRA fees explained →

T

Troy ounce

The standard weight for precious metals: 31.1035 grams, about 10% heavier than a regular ounce. Gold price today →

General information, not financial, tax or legal advice. IRA rules can change; confirm with your custodian and a tax professional. Read our full disclaimer.