Agio / premium
Agio is another term for a premium. For physical gold it is the amount by which the product price exceeds the indicative value of the fine gold it contains.
Gold terminology explained clearly and without a sales agenda.
Concise definitions for market terms, measurement, physical gold and selected German legal concepts. Product, legal and tax questions still require an individual review.
A
Allocated and unallocated gold
Allocated gold identifies specific bars or holdings for a client. An unallocated holding is generally a claim against a provider, so ownership, insolvency and delivery terms require separate review.
Alloy
An alloy combines gold with metals such as silver, copper or palladium. It changes colour, hardness and total weight; material value is based on the actual fine-gold content.
B
Bid and ask
The bid is the price a buyer offers; the ask is the price a seller requests. Their difference is the spread and varies with product, venue and liquidity.
Bullion
Bullion is the international term for standardised bars and investment coins valued mainly for their metal content rather than design or rarity.
Bullion coin
A bullion coin is traded mainly for its precious-metal content. Its price is usually closer to material value than that of a scarce collector coin, while still including premiums and spreads.
C
Central-bank gold
Central-bank gold is held as part of official reserves for monetary and reserve-policy purposes. It is distinct from exchange-traded products and private bullion.
Collector coin
A collector coin can be valued mainly for rarity, condition, year and demand rather than metal content. A material-value calculator is therefore insufficient for appraisal.
Custody
Custody means storing physical gold at home, in a safe-deposit box or with a specialist provider. Cost, insurance, access, ownership allocation and insolvency protection require separate checks.
F
Face value
A legal-tender gold coin’s face value is the currency amount stamped on it. For bullion coins, the metal and market value is normally much higher.
Fineness and carat
Fineness states the pure-gold share, commonly in parts per thousand: 999.9 means 99.99 per cent. Carat divides an alloy into 24 parts, so 18 carat corresponds to 750 fineness.
G
German private-sale holding period
For physical gold held as a German private asset, Section 23 EStG can be relevant when acquisition and disposal are no more than one year apart. Product type and personal circumstances can change the result.
Not tax advice; consult a tax adviser for a personal assessment.
Gold bar
A gold bar is a cast or minted product with a stated weight and fineness. Its market price combines metal value with product costs, and resale can depend on maker, condition and verification.
Gold bars versus coins
Larger bars often have a lower percentage premium, while recognised bullion coins can be easier to divide and identify. Total cost, fine-gold content, verification and resale matter more than format alone.
Gold ETF and gold ETC
An ETF is an exchange-traded fund, while many European gold products are structured as ETC debt securities. Collateral, delivery rights, cost, issuer risk and tax treatment depend on the exact product.
Not investment or tax advice; review the product documents and seek qualified advice where needed.
Gold reserves
Gold reserves are holdings kept by central banks as part of official reserves. They support diversification and confidence and are distinct from private investments or banks’ regulatory capital.
Good Delivery
Good Delivery is the LBMA framework for large wholesale bars and approved refiners. It defines aspects such as weight, form, markings and quality and is not a blanket seal for every retail product.
I
Investment gold
Investment gold has a specific definition in German VAT law. Qualifying bars must meet a minimum fineness and qualifying coins must satisfy additional statutory criteria; not every gold product is covered.
Not tax advice; consult a tax adviser for a personal assessment.
K
Krugerrand
The Krugerrand is a South African bullion coin. The classic one-ounce coin contains one troy ounce of gold but weighs more because of its durable gold-copper alloy.
L
LBMA Gold Price
The LBMA Gold Price is a benchmark produced through electronic auctions administered by ICE Benchmark Administration. Commercial use for valuation or financial products may require a licence.
London OTC market
London gold is largely traded over the counter between counterparties rather than through one central order book. Pricing, settlement and counterparty risk therefore differ from exchange trading.
M
Mint
A mint manufactures coins and sometimes minted bars to defined specifications. Origin and established quality controls can aid recognition but do not replace authenticity testing.
O
Over-the-counter cash transaction
The German term Tafelgeschäft describes an in-person exchange of performance and payment at a counter. It does not guarantee anonymity; identification and anti-money-laundering duties may apply.
Not legal or tax advice; obtain qualified advice for a specific transaction.
P
Premium
The premium is the difference between a gold product’s retail price and the reference value of its fine-gold content. It covers fabrication, distribution, logistics, risk and margin.
R
Recycled gold
Recycled gold is recovered from previously used products or production scrap and refined again. Properly refined material can reach the same fineness as newly mined gold.
Refinery
A refinery separates and purifies precious metals from alloys, scrap or industrial material. Testing, settlement and certification practices differ by provider.
S
Spot price
The spot price is a wholesale reference for near-term delivery. It is not automatically a tradable consumer price because bars and coins add premiums, spread, delivery, testing or custody.
Spread
The spread is the difference between purchase and sale prices. Its size depends on the product, liquidity and provider terms and must be recovered before a round trip becomes profitable.
T
Troy ounce
The troy ounce is the international precious-metals weight unit. It equals exactly 31.1034768 grams; a gold quote per ounce normally refers to fine-gold content.
X
Xetra-Gold
Xetra-Gold is a gold-backed bearer note issued by Deutsche Börse Commodities with a delivery claim. It is a security rather than a bar already owned directly, so issuer, account, cost and product risks remain.
Not investment or tax advice; review current product documents and personal tax consequences.