Gold Glossary: 66 Terms Gold Buyers Run Into

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60-day rule: If IRA money is paid to you, you generally have until the 60th day after you receive it to deposit it in another IRA. Miss that and the IRS treats it as a taxable distribution, with the 10% early distribution tax possible on top. A direct transfer never starts the clock.

A

Alloy: Gold mixed with other metals to make it harder. The U.S. Mint's Gold Eagle is 91.67% gold, 3% silver and the balance copper, and the Krugerrand's alloy is copper. The extra metal sits on top of a full ounce of gold, which is why both coins weigh more than an ounce.
Ask: The price a dealer will sell to you at. It's always above spot; the CFTC says "A dealer will always sell metal above the spot price and buy it back below the spot price."
Assay: A test of what a piece of metal is made of and how pure it is. COMEX gold, for example, has to "assay to a minimum of 995 fineness." The Royal Mint lists formal assay among the methods professionals use; it isn't a home test. For the checks you can do yourself, see spotting fake gold.
Assay card: The sealed package a small bar comes in, printed with its weight, fineness and serial number. PAMP's CertiPAMP card adds a QR code and the signature of an independent Swiss Federal Assayer. Check the serial on the card matches the bar, and leave it sealed if you plan to resell.
Authorized purchaser: A firm that buys bullion coins straight from the U.S. Mint, which doesn't sell its bullion to the public. Authorized purchasers resell to wholesalers, banks and retailers. The Mint says not all of them sell to consumers, and being on its list says nothing about customer service.

B

Bid: What a particular buyer will pay you for your gold today. Testing, shipping, refining and the buyer's margin come out of it, so a bid sits below melt value. Selling gold shows how to compare bids.
Bullion: Gold valued for its weight and purity, as bars, rounds or coins. Its price follows the gold price every trading day.
Bullion coin: The U.S. Mint calls it "a coin that is valued by its weight in a specific precious metal." The Gold Eagle, Gold Buffalo, Maple Leaf and Krugerrand are the four most American buyers see. Gold coins puts them side by side.
Burnished: A collector finish made by polishing the coin blanks before striking. APMEX says burnished Eagles look matte next to a standard bullion coin, are struck at West Point with a "W" mint mark, and that the U.S. Mint sells them simply as uncirculated coins.
Buyback: The price a dealer pays when you sell back to it, the same thing as its bid. We'd ask for it on the same product and the same day as the selling price, before buying.

C

Capital gain: What you get when you sell, minus your cost basis. IRS Publication 544 lists gold and coins as capital assets for owners who aren't dealers. Hold more than a year and the gain is long-term; a year or less, short-term. See how gold is taxed.
Cast bar: A bar made by pouring molten gold into a mold. Valcambi says cast bars have traditionally had a less refined finish. PAMP makes them from 50 grams to 1 kilo, plus 400 ounce bars.
Collectible (tax): The IRS's label for coins and "metals (such as gold, silver, and platinum bullion)." Net long-term gains on collectibles are taxed at a maximum 28% rate, per IRS Topic 409. Inside an IRA, buying a collectible normally counts as a distribution, unless section 408(m) makes an exception.
Commingled (pooled) storage: Depository storage where your metal sits with identical products owned by other customers. You get back the same product and quantity, though maybe not the same pieces. Delaware Depository calls it "the preferred choice for fungible products" and says it costs less than segregated.
COMEX: The CME Group exchange where U.S. gold futures trade. Its gold contract wants gold that assays to "a minimum of 995 fineness," and that number is the line the IRS uses for IRA bullion.
Cost basis: What the gold cost you, for tax purposes. IRS Publication 551 counts sales tax and freight as part of cost, so your basis normally includes the dealer's price with its premium, plus any tax and shipping. Keep every invoice.
Counterfeit: A fake coin or bar. The Deutsche Bundesbank sorts fake coins into two groups: ones with real but lower-grade gold, and ones with a steel, zinc, copper alloy or tungsten core under a thin gold layer. An LBMA journal reports that more than 1,000 counterfeit bars were found in vaults worldwide in 2019. Our fake gold guide covers the checks.
Custodian: The institution that holds and runs an IRA. In a gold IRA it takes in the money, pays the dealer on your direction, has the metal stored at a depository, keeps records and reports to the IRS. Per the SEC, NASAA and FINRA, self-directed IRA custodians don't sell investments or judge the quality of what you buy.

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Dealer: A business that buys and sells physical gold coins and bars to the public, online, in a shop or both. The CFTC notes that precious metals dealers often aren't licensed to give investment advice. How to check a gold dealer walks through the checks.
Depository: A specialist vault that stores precious metals for individuals, dealers and IRA custodians. Equity Trust, for one, lists five it works with, among them Delaware Depository and Brink's. Gold storage lists what to ask before using one.
Direct transfer: IRA money sent from one custodian straight to another. IRS Publication 590-A says a trustee-to-trustee transfer "isn't a rollover," so neither the 60-day rule nor the once-a-year limit applies. It's how most people fund a gold IRA from an existing IRA.

F

Face value: The currency amount stamped on a coin, like the $50 on a one-ounce Gold Eagle. It doesn't set the price. The U.S. Mint calls the face value of its bullion coins "largely symbolic."
Fineness: How much of a piece is pure gold, written as a decimal or in parts per thousand: .9999, 999.9 and 99.99% all mean the same thing. It's the number bullion is bought and sold on.
Form 1099-B: The form a broker files to report certain sales. For precious metals, the IRS only requires it for forms and quantities tied to CFTC-approved futures contracts; its own example says a broker selling a single gold coin needn't file. Your gain is taxable either way.
Form 8300: The form a business files within 15 days when it receives more than $10,000 in cash in one transaction or related ones. For a collectible sale, a cashier's check of $10,000 or less can count as cash; personal checks and wires don't. It's the dealer's filing, and it isn't a tax on you.
Futures: A futures contract is an exchange-traded agreement to buy or sell a set amount of gold at a set price on a later date; CME Group's main COMEX gold contract is 100 troy ounces.

G

Gold IRA: A self-directed IRA whose custodian lets it own physical gold that meets IRS purity rules, stored by a trustee at a depository. It follows the same contribution, rollover and distribution rules as any other IRA of its type. The gold IRA guide covers it start to finish.
Gold-to-silver ratio: The price of an ounce of gold divided by the price of an ounce of silver. On World Bank yearly averages it was about 29 in 1980 and about 86 in 2025. Past performance does not guarantee future results. More in gold and silver.
Good Delivery bar: The large bar traded in the London market. LBMA rules set it at 350 to 430 fine troy ounces, usually close to 400, at least 995.0 parts per thousand fine, stamped with a serial number, the refiner's mark, the fineness and the year made.
Gram: The metric unit many bars are sized in, from 1 gram up. A troy ounce is 31.1034768 grams, so a gram of pure gold is spot divided by that figure. Our gold unit converter does the sum.

H

Hallmark: The stamped marks on gold that state its fineness and who stands behind it. A UK hallmark has three compulsory parts: the maker's mark, the fineness mark and the Assay Office mark. In the U.S., the FTC tells shoppers to look for a trademark next to the karat mark, and not to buy the piece if there isn't one.
Home storage: Keeping gold you own directly in a safe at home. Access is instant and there's no storage fee, but insurance is on you; the FDIC suggests asking your homeowner's or renter's agent about valuables coverage. IRA gold can't be stored this way.

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In-kind distribution: Taking the actual coins and bars out of an IRA, shipped from the depository, instead of cash. IRS Publication 590-B describes distributions as "money or other property," so metal paid out counts just as cash would.
IRS-approved fineness: The purity gold bullion needs to go in an IRA: at least what a regulated futures exchange requires for delivery, which is 995 for COMEX gold. American Gold Eagles qualify by name at 91.67%. Check any coin with the gold IRA coin checker.

K

Karat: Gold content counted in 24ths. 24K is pure gold, 22K is 91.67%, 18K is 75% and 14K is 58.33%. British and South African sources spell it carat. Gold karats and purity has the full table.
Kilo bar: A 1,000 gram bar, which is 32.1507 troy ounces. PAMP's minted kilo measures 52.5 x 118 mm. See gold bar sizes.

L

LBMA: The London Bullion Market Association. It writes the Good Delivery rules and keeps the list of accredited refiners, which exchanges including CME Group use. As of October 2026 its current gold list names 67 refiners.
Legal tender: Official money of the country that issues it. U.S. bullion coins are legal tender at their face value, and the Krugerrand is legal tender in South Africa with its value set in ounces of fine gold, not rand.

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Melt value: What the pure gold in a piece is worth at the spot price: weight in troy ounces times purity times spot. One troy ounce is worth today’s spot price right now. The gold value calculator works it out from weight and karat.
Millesimal fineness: Purity in parts per thousand, the way the bullion trade writes it. 916 is 22 karat, 750 is 18 karat, and the Good Delivery minimum is 995.0. Rand Refinery goes a step finer and gives the Krugerrand as 9167 parts gold in 10,000.
Mint mark: In the U.S. Mint's words, "letters that identify where a coin was made." Today it mostly uses S for San Francisco, D for Denver, P for Philadelphia and W for West Point, where proof and uncirculated Gold Eagles are struck.
Minted bar: A bar cut from rolled gold sheet and struck, with a sharper finish than a cast bar. PAMP's Lady Fortuna minted bars run from 1 gram to 1 kilo and come sealed in an assay card. More in PAMP Suisse gold bars.

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Numismatic coin: A collector coin. The U.S. Mint describes these as "valued by limited mintage, rarity, condition, or age." The CFTC says they can carry premiums of 40 to 200 percent above spot.

P

Pennyweight: A twentieth of a troy ounce: 24 grains, or 1.55517384 grams. It's what you'll see on a gold buyer's scale when jewelry gets weighed. Divide the price per troy ounce by 20 for the price per pennyweight.
Precious metals IRA: The same account as a gold IRA. The name takes in silver, platinum and palladium that meet their own IRS fineness rules.
Premium: What you pay above the spot value of the gold. The CFTC puts typical bullion premiums at 5 to 10 percent over spot. Smaller pieces cost more per ounce: the U.S. Mint charges its wholesale buyers 3% over the gold price on one-ounce Eagles and 9% on tenth-ounce coins. Try the premium calculator on any quote.
Proof: A minting method, not a grade. The U.S. Mint hand-feeds burnished blanks into presses with special dies and strikes each coin more than once, for frosted designs on a mirror-like field. It sells proofs directly at fixed prices, each with a certificate of authenticity.

R

Reeded edge: The fine grooves around a coin's rim. Federal law (31 U.S.C. 5112) requires them on Gold Eagles. The Bundesbank caught some fake coins by counting the reeds and finding the wrong number.
Refiner: A company that melts, purifies and casts or mints gold into bars. Refiners on the LBMA Good Delivery List include PAMP, Valcambi, Argor-Heraeus, Metalor and Rand Refinery. Gold bars lists more.
Required minimum distribution: The amount you must take out of a traditional IRA each year once distributions are required. They must begin by April 1 of the year after you reach 73. Roth IRAs have none while the owner is alive. From a gold IRA you can take them as cash from metal the custodian sells, or as an in-kind distribution.
Rollover: Moving retirement money where it's paid to you first, or paid directly from an employer plan to an IRA. You can make only one IRA-to-IRA rollover in any 12 months, counting all your IRAs together. From a 401(k), a direct rollover avoids the 20% withholding the plan must take if it pays you.

S

Safe deposit box: Space a bank rents you, open during bank hours. It isn't a deposit account: the FDIC says box contents "are not insured by FDIC deposit insurance if damaged or stolen." Ask your home insurer what it covers.
Sales tax on bullion: Set state by state. California, for one, exempts sales of coins and bullion worth $2,000 or more in a single transaction since July 1, 2023. Any sales tax you pay goes into your cost basis.
Section 408(m): The part of the tax code that treats an IRA's purchase of a collectible as a distribution, then carves out exceptions. Those exceptions let in U.S. gold coins such as the Gold Eagle, and gold bullion at futures-exchange fineness held by the IRA trustee. They're the reason gold IRAs exist.
Segregated storage: Depository storage where your metal is kept apart from everyone else's. Delaware Depository says these customers "will receive back the same exact bars or coins that were originally deposited." It costs more than commingled storage.
Self-directed IRA: "An IRA held by a custodian that allows investment in a broader set of assets," as the SEC, NASAA and FINRA put it. Legally it's an ordinary IRA. See holding gold in a self-directed IRA.
Sovereign mint: A government mint, such as the U.S. Mint, the Royal Canadian Mint or the South African Mint. The U.S. Mint says the weight, content and purity of its bullion coins are guaranteed by the United States Government.
Spot price: The market price for one troy ounce of gold, today’s spot price right now. Every retail price starts from it. Our live gold price page tracks it through the day.
Spread: The gap between a dealer's selling price and its buyback price on the same product, the same day. It's your round-trip cost of buying and later selling.

T

Tola: A traditional weight some refiners still make bars in. Valcambi's 10 tola bar holds 116.51 grams of fine gold, which works out to about 11.66 grams, or 0.375 troy ounces, per tola.
Troy ounce: The ounce gold is weighed and priced in: exactly 31.1034768 grams under NIST's tables. It's about 9.7% heavier than the 28.35 gram ounce on a kitchen scale. Read the troy ounce guide for the conversions.
Trustee: The tax code's word for the institution holding an IRA. Section 408(a)(2) says it must be a bank or another entity the IRS approves, and the IRS keeps a list of approved nonbank trustees. IRA bullion has to be in its physical possession.
Tungsten: The metal behind the best fakes. A paper from an LBMA conference gives tungsten's density as 19.25 g/cm³ against 19.30 for gold, so a tungsten-core piece can match a real one's weight. The Bundesbank's tungsten-core fake was within 0.03 grams of a genuine coin.

W

World Bank Pink Sheet: The World Bank's commodity price data, and the source of our gold price history. Its gold series runs from 1960; through mid-2025 it averages the London afternoon fixing for 99.5% gold, and from June 2025 daily spot rates.

X

XRF testing: X-ray fluorescence, a dealer's test that reads a piece's chemical makeup in seconds without damaging it. The Bundesbank notes it reads less than 0.05 mm deep, so a thick gold shell over tungsten can pass. A conductivity test reads deeper.

Sources and fact-check42 primary sources, checked October 17, 2026

We check every figure against the original source: the mint, the regulator, the exchange or the company itself. Spotted something out of date? Tell us.

Gold glossary

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