Understanding Gold Industry Terminology: A Comprehensive Guide
The gold industry is full of specialised terminology that can often seem overwhelming to new investors and collectors. Whether you are purchasing bullion or curious about how gold is mined, understanding the correct terms is key to making well-informed decisions. Below, we present a list of key terms along with short explanations to enhance your understanding of the gold industry:
Key Precious Metals Terms
Spot Price - The current market price at which one can buy or sell gold. It is constantly changing due to market conditions.
Bullion - Physical gold in the form of bars or ingots, valued by its mass and purity rather than by monetary face value.
Carat - A measure of purity for gold alloys, not to be confused with 'karat' which refers to the weight of diamonds. Pure gold is 24 carats.
Troy Ounce - A unit of measure used for precious metals that is heavier than a regular ounce, equal to approximately 31.1035 grams.
Futures Contract - An agreement to buy or sell gold at a predetermined price at a specified time in the future.
Exchange-Traded Fund (ETF) - Investment funds traded on stock exchanges, much like stocks, that hold assets such as gold.
Purity - The actual gold content in an item, typically expressed in fineness or carats, where pure gold is 24 carats or has a fineness of 999.9.
Numismatic - The study or collection of currency, including coins and paper money. In gold, numismatic coins have values exceeding their metallic worth due to rarity or design.
Granules - Tiny, rough particles of gold resulting from molten gold being poured into water, used in jewelry and industry.
Grain - A unit of mass for gold that equals about 0.0648 grams, traditionally used in weighing precious metals.
Shot - Small beads of gold formed by dripping molten gold through a sieve into water, utilized mainly in jewelry making.
Slag - The waste product from melting ore to extract gold, containing little precious metal.
Premium - The cost over the spot price of gold, accounting for production, distribution, and dealer profit.
Allocated Gold - Gold that is stored in a vault, earmarked and segregated for the investor with specific details recorded.
Unallocated Gold - A share in a pool of gold where the investor owns a portion but not specific bars or coins, reducing storage costs.
Good Delivery - The criteria for acceptable gold bar quality in international trading as per the London Bullion Market Association.
Assay - The testing of gold's purity, involving both chemical and physical examination.
XRF - A technique to determine gold's elemental composition without altering its form.
Vault - A secure location for storing gold bars and coins.
Serial Numbers - Unique identifiers on gold bars or coins for tracking and authenticity.
Certificates - Documents proving ownership and authenticity of gold products.
Loco - The location term for where gold is stored or delivered, with prices varying by location.
Specific Gold Mining Terms
Ore: Rock with recoverable gold.
Grade: The gold concentration within ore.
Vein (Lode): A seam of gold within rock formations.
Placer Deposits: Gold found in loose, sedimentary material, often extracted by panning.
Tailings: Residual material after gold extraction.
Leaching: A chemical process to dissolve gold from ore.
Amalgamation: The process of binding gold with mercury before separating it.
Flotation: A method for separating gold from other materials in ore.
Heap Leaching: A technique for extracting gold from low-grade ore by treating it with a leaching solution.
Concentrate: The purified product of ore after processing.
Milling: The process of grinding ore into fine particles.
Smelter: A facility that melts ore to separate its components.
Doré Bar: An alloy of gold and silver, usually produced at a mine.
Prospecting: The search for mineral deposits, including gold.
Cut-off Grade: The minimum ore grade that is considered economically viable to mine.
Reclamation: Restoring mined land to a natural or usable state.
Alluvial Mining: Gold mining in streambeds.
Underground Mining: Extracting ore from beneath the earth's surface.
Sluice Box: A device for separating gold from sediment in alluvial mining.
Refractory Ore: Ore resistant to recovery by standard cyanide leaching.
At Queensland Mint, we bridge the gap between complex terminology and our clients' need for clear and actionable gold investment knowledge. For more information or to discuss your gold trading options, contact our Trade Desk at 07 3184 8300. We are dedicated to providing you with trustworthy gold trading experiences, leveraging our sustainable mine-to-market strategy and our commitment to quality and service. Join us and solidify your assets with the enduring value of gold.