Guide to Coin and Precious Metal Terminology: Everything You Need to Know
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Our Guide to Coin and Precious Metal Terminology: Everything You Need to Know
Navigating the world of coins and precious metals can feel like learning a new language. Whether you're an investor, a collector, or just curious about numismatics, understanding common terminology is essential. In this guide, Sovara Coins breaks down the key terms you'll come across in the coin and precious metals market.
Common Coin Terminology
Bullion: Coins, bars, or ingots made from precious metals like gold, silver, or platinum, valued by weight and purity rather than face value or rarity.
Proof: A high-quality coin struck using specially polished dies and blanks, resulting in a flawless mirror-like finish and sharp details.
Brilliant Uncirculated (BU): A coin that has never been in circulation and retains its original mint lustre, though it may have minor marks from the minting process.
FDC (Fleur-De-Coin): A term meaning "as struck," used to describe a coin in perfect condition, often straight from the mint.
Obverse: The front or "heads" side of a coin, typically featuring a portrait or national emblem.
Reverse: The back or "tails" side of a coin, usually displaying the denomination or design.
Mintage: The total number of coins produced for a specific issue or year.
Numismatics: The study or collection of coins, paper money, and related items.
Die: The engraved stamp used to strike the design onto a coin blank.
Edge: The outer border of a coin, which may be plain, reeded, or inscribed.
Face Value: The legal tender value printed on the coin, often far lower than its metal value for bullion coins.
Precious Metal Terminology
Spot Price: The current market price of a precious metal, usually quoted per troy ounce.
Premium: The additional cost over the spot price, reflecting minting, distribution, and dealer margins.
Troy Ounce: The standard unit of measurement for precious metals, equal to 31.1035 grams.
Fineness: A measure of the purity of a precious metal, usually expressed in parts per thousand (e.g., 999.9 for 99.99% pure gold).
Assay: A test to determine the content and purity of a precious metal item.
Hallmark: A stamped mark certifying the metal content and authenticity of a coin or bar.
CGT (Capital Gains Tax): In the UK, certain coins (like sovereigns and Britannias) are CGT-free because they are legal tender.
Grading and Certification Terms
PF (Proof Finish): A grading prefix denoting a proof coin, followed by a number (e.g., PF70).
MS (Mint State): A grading prefix used for bullion or uncirculated coins, also followed by a number (e.g., MS70).
Ultra Cameo (UC) / Deep Cameo (DCAM): Describes proof coins with a strong contrast between frosted designs and mirrored fields.
NGC & PCGS: The two leading independent coin grading companies, ensuring authenticity and assigning grades to coins.
Other Useful Terms
Restrike: A coin that is minted later using original dies but not from the original production period.
Legal Tender: A coin officially issued by a government, recognised for use in transactions (though often not used due to its metal value).
Spotting: Tiny marks or blemishes that can appear on proof or bullion coins, often from environmental factors.
Hazing: A light cloudiness that sometimes forms on proof coins over time.
Why This Matters
Understanding these terms helps you make informed decisions whether you're buying, selling, or simply appreciating coins and bullion. At Sovara Coins, we aim to make the world of precious metals approachable for all, offering expert advice and top-tier products.
Looking to expand your collection? Explore our range of graded coins, proof coins, and bullion – and get in touch if you'd like help navigating your investment journey.
