Gold buying glossary: karats, spot, spread
A clear glossary reduces confusion before appraisal and helps you understand an offer. Definitions do not replace inspection of the item.
Purity and weight terms
Karats: a measure of the proportion of gold in an alloy.
Purity: the amount of gold contained in the alloy.
Net weight: the metal weight used after non-gold parts are excluded.
Price and market terms
Spot price: a reference price for the metal at a particular market and time.
Spread: the difference between a reference price and a transaction price.
Final offer: the amount proposed for the specific item after inspection.
Sovereign and coin terms
Gold sovereign: in everyday Greek usage, usually the British gold sovereign.
Collector value: possible additional value from issue, rarity, condition, and demand beyond the metal.
Pawn and process terms
Pawn: a transaction using an item as security under agreed terms.
Appraisal: the process of checking and describing the factors behind an indicative or final offer.
FAQs
- What does spot price mean?
- It is a reference metal price at a particular time and is not necessarily the buying price.
- What is a spread?
- It is the difference between the reference price and the transaction price.
- What do karats mean?
- They indicate the proportion of pure gold in an alloy.
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