Glossary

Asset Class

A category of investment, such as equities, bonds, real estate, or commodities like gold.

 

 

Bar (Bullion Bar)

A rectangular block of refined gold, usually minted or cast, and sold in various weights.

 

 

Bid Price

The price a buyer is willing to pay for a bullion product.

 

 

Bullion

Investment-grade gold, silver, or other precious metals in the form of coins, bars, or ingots, valued by weight and purity.

 

 

Buyback

The process of selling bullion back to a dealer or platform, often at the current spot price minus a small margin.

 

 

Capital Gains

The profit made from selling an asset for more than its purchase price. In some jurisdictions, this may be taxable.

 

 

Coin (Bullion Coin)

A government-issued precious metal coin intended primarily for investment, such as the Krugerrand.

 

 

Fineness

The purity of gold, usually expressed in parts per thousand (e.g. 999.9 = 99.99% pure).

 

 

Gold Standard

A monetary system where a country’s currency is directly linked to gold reserves. Historically used to back the value of paper currency.

 

 

Hedge

An investment made to reduce the risk of adverse price movements in an asset. Gold is often used as a hedge against inflation and market volatility.

 

 

Krugerrand

A South African gold bullion coin first minted in 1967, widely recognised and traded globally.

 

 

Liquidity

The ease with which an asset can be quickly bought or sold in the market without affecting its price.

 

 

Mint

A facility where coins and bars are manufactured. The SA Mint is the official producer of Krugerrands.

 

 

Ounce (troy ounce)

A unit of measure used for precious metals. One troy ounce equals approximately 31.1035 grams.

 

 

Portfolio Diversification

An investment strategy that spreads assets across various asset classes to reduce risk.

 

 

Premium

The amount charged above the spot price to cover manufacturing, distribution, and dealer margins.

 

 

Proof Coin

A specially struck coin with a high-quality finish, often intended for collectors and limited in mintage.

 

 

Purity

The proportion of gold in a bullion item. Expressed as a percentage or in fineness (e.g. 99.99% = 999.9).

 

 

Spot Price

The current market price at which gold can be bought or sold for immediate delivery.

 

 

Troy Ounce

The standard measurement used for gold and other precious metals. Different from the avoirdupois ounce used in everyday weight measures.