Bullion Glossary

Buying gold in the Emirates means juggling troy ounces, tola and grams, 24K bars and 21K jewellery, 0% and 5% VAT. This glossary explains the terms you meet at a dealer's counter or on an online order page, written for buyers in the UAE and priced in dirhams.

Each entry gives a short definition, a worked example with local products and answers to common questions. When you are ready to buy, see the cheapest gold coins in the UAE, ranked by final price with delivery included.

All terms

B

Bid-Ask Spread
The bid-ask spread is the difference between the price a dealer sells gold to you (ask) and the price it pays to buy it back (bid). It is your round-trip cost of owning bullion.
Bullion
Bullion is gold, silver or platinum valued by its weight and purity rather than by design or rarity. It comes as bars and bullion coins priced close to the spot price.

F

Fineness
Fineness is the share of pure precious metal in an item, written in parts per thousand. A bar stamped 999.9 is 99.99% gold; a 22K chain stamped 916 is 91.6% gold.

K

Karat
A karat (also spelled carat) measures gold purity in 24ths. 24K is pure gold, 22K is 22 parts gold out of 24, and 18K is 18 parts, or 75%.

L

LBMA Good Delivery
LBMA Good Delivery is the London Bullion Market Association's standard for large gold and silver bars and the refiners allowed to make them. Bars from listed refiners are accepted across the wholesale market.

N

Numismatic Coins
A numismatic coin is valued for rarity, condition, design or history rather than metal content alone. Its price can sit far above the value of the gold or silver it contains.

P

Premium over Spot
Premium over spot is the amount you pay above the metal value of a coin or bar, usually shown as a percentage. It covers minting, dealer costs, delivery and, where it applies, VAT.

S

Spot Price
The spot price is the current wholesale price of gold or silver for immediate delivery, quoted per troy ounce in US dollars. In the UAE it converts to dirhams at the fixed peg of AED 3.6725 per dollar.

T

Troy Ounce
A troy ounce (oz t) is the unit used to weigh and price precious metals worldwide. It equals 31.1035 grams, which is heavier than the everyday ounce of 28.35 grams.

V

VAT on Gold in the UAE
In the UAE, gold, silver and platinum of at least 99% purity in a form traded on global bullion markets are zero-rated for VAT. Other gold, including most jewellery, is taxed at the standard 5% rate.