Glossary
Short, factual explanations of the terms you meet when buying, holding and selling gold and silver. Each term in a paragraph, with examples and the usual numbers.
- Spot price
The spot price is the price at which gold, silver or another metal trades right now on the world market for immediate delivery. - Troy ounce
A troy ounce is 31.1034768 grams, the unit in which gold, silver, platinum and palladium are quoted internationally. - Fine weight
Fine weight is the weight of the pure precious metal in a coin or bar: gross weight times fineness. - Premium over spot
The premium is the difference between the selling price of a coin or bar and the spot value of the metal in it. - Gold-silver ratio
The gold-silver ratio is the gold price divided by the silver price: how many grams of silver one gram of gold buys. - VAT on gold and silver
Investment gold is VAT-exempt across the EU: bars of at least 995 fine and recognised coins of at least 900 fine. - Karat and fineness
Karat gives the gold content in 24 parts; fineness gives the share of precious metal in thousandths. - Spread
The spread is the difference between the price at which a dealer sells a coin or bar and the price they pay when you sell it back.
See also the coin values and the prices page.