This glossary defines the terms you will meet when researching a gold IRA or buying physical precious metals. Each definition is neutral and independent. Where a term maps to a category of firm, we link to that part of the directory.
- Allocated storage
- Storage in which specific bars or coins are recorded as the property of one account holder. Those exact pieces remain that owner's and are not part of a shared pool. See precious metals depositories.
- Bid ask spread
- The gap between the price a dealer pays to buy metal back and the price it sells at. A wider spread means an investor needs a larger price move before a holding breaks even.
- Bullion
- Gold or silver valued mainly for its metal content and weight rather than collectibility. It is usually sold as bars or common coins priced close to the spot price. See bullion dealers.
- Buyback
- A dealer's offer to repurchase metal it previously sold. A clear buyback policy matters because it affects how quickly and at what price an investor can convert holdings back to cash.
- Commingled storage
- Storage in which an account holder owns a share of a larger pooled inventory of the same metal rather than specific numbered pieces. It is often less expensive than segregated storage. See precious metals depositories.
- Depository
- A secure and insured facility that stores the physical metal held inside a precious metals IRA. Internal Revenue Service rules require IRA metal to be held by an approved trustee or depository rather than at home. See precious metals depositories.
- Fineness
- A measure of metal purity expressed in parts per thousand. A higher number means fewer other metals are mixed in, and precious metals IRAs require minimum fineness levels.
- Gold IRA
- A self-directed individual retirement account that holds Internal Revenue Service approved physical gold, and often other precious metals, rather than only stocks and funds. The metal is held by a custodian at an approved depository. See gold IRA companies.
- Gold IRA custodian
- A regulated financial institution that holds the assets in a self-directed precious metals IRA and handles the required recordkeeping and tax reporting. The custodian is separate from the dealer that sells the metal. See gold IRA custodians.
- IRA-eligible metals
- Coins and bars that meet the Internal Revenue Service fineness and sourcing standards required to be held inside a precious metals IRA. Many collectible and low purity items do not qualify. See gold IRA companies.
- LBMA price
- A widely referenced benchmark price for gold and silver administered through the London Bullion Market Association. Dealers and depositories often use it as a neutral pricing reference.
- Numismatic coin
- A coin whose value comes largely from rarity, condition, and collector demand rather than its metal content alone. Numismatic pricing is more subjective than bullion pricing. See coin and numismatic dealers.
- Proof coin
- A collector coin struck with polished dies for a mirror-like finish and issued in limited quantities. Proof versions usually carry higher premiums than standard bullion coins of the same design. See coin and numismatic dealers.
- Required minimum distribution
- The amount the Internal Revenue Service requires an account holder to withdraw from most retirement accounts each year once they reach a set age. Metal in an IRA may need to be sold or distributed in kind to meet it.
- Rollover
- Moving retirement funds from an employer plan such as a 401k into an IRA. A direct rollover sends the money between providers so the account holder never takes possession, which avoids withholding. See gold IRA and rollover companies.
- Segregated storage
- Storage in which an account holder's metal is kept physically apart from other customers' holdings and can be returned as the same bars or coins. It usually costs more than commingled storage. See precious metals depositories.
- Self-directed IRA
- An individual retirement account that can hold alternative assets such as physical precious metals through a custodian that allows them. It follows the same contribution and distribution rules as other IRAs. See gold IRA companies.
- Spot price
- The current market price to buy or sell one troy ounce of a metal for immediate settlement. Dealers quote coins and bars relative to spot and add a premium on top.
- Troy ounce
- The standard unit used to weigh precious metals, equal to about 31.1 grams. It is slightly heavier than the ounce used for food and other everyday goods.
- Trustee to trustee transfer
- Moving funds directly from one IRA custodian to another without the owner taking possession of the money. Unlike a distribution, a transfer is not a taxable event. See gold IRA and rollover companies.
