Essential Gold Trading, Mining, Export, Refining & Investment Terms Explained
Welcome to the Lumia Gold and Minerals Gold & Precious Metals Glossary.
The gold industry uses specialized terminology that can be confusing for new buyers, sellers, investors and even experienced professionals entering a new part of the supply chain.
Terms such as:
- Gold doré
- Assay
- Fineness
- LBMA
- Refinery
- Chain of custody
- Certificate of origin
- Export permit
- KYC
- AML
- Beneficial ownership
- Escrow
- Offtake
- CIF
- CIP
- DAP
can have important commercial and regulatory meanings.
This glossary has been created to help clients understand the terminology commonly used in African gold sourcing, international gold trading, precious-metals transactions, mining, refining, exports, logistics, compliance and investment.
Our objective is simple:
Understand the language of the transaction before you commit to the transaction.
How to Use This Glossary
You can use this glossary when:
- Reviewing a gold offer
- Reading an SPA
- Evaluating a supplier
- Preparing an export
- Speaking with a refinery
- Reviewing assay results
- Understanding logistics
- Conducting due diligence
- Assessing an investment
- Negotiating payment terms
Each definition is written in practical commercial language rather than technical jargon alone.
A
AML – Anti-Money Laundering
AML refers to policies, procedures and laws designed to prevent financial systems and commercial transactions from being used to disguise the proceeds of crime or other illicit activity.
In gold trading, AML considerations can be important because precious metals are high-value, portable and internationally tradable.
AML review can involve:
- Counterparty identity
- Beneficial ownership
- Source of funds
- Source of gold
- Payment beneficiary
- Transaction structure
Air Waybill – AWB
An Air Waybill is a transport document used for air cargo.
It can include:
- Shipper
- Consignee
- Origin airport
- Destination airport
- Cargo description
- Weight
- Number of packages
- Handling information
An Air Waybill provides transportation information but does not, by itself, prove gold purity, ownership or legality.
Assay
An assay is a technical test used to determine the composition or purity of gold and other precious metals.
Assay can establish:
- Gold content
- Fineness
- Silver content
- Other metal content
Assay is one of the most important technical stages in a gold transaction.
Assay Certificate
An assay certificate is a document issued by a laboratory, refinery or qualified assayer showing the results of testing.
A professional buyer should ask:
What material was tested?
When was it tested?
Does the certificate relate to the current shipment?
Assayer
An assayer is a qualified person, laboratory or facility that tests gold or other materials to determine their composition.
Artisanal and Small-Scale Mining – ASM
ASM refers to mining operations that are smaller in scale than major industrial mines.
These operations can range from highly informal activities to licensed and organized cooperatives or small mining companies.
ASM plays an important role in some African gold-producing regions.
B
Bar
A bar is a cast or refined form of metal.
Gold bars can include:
- Doré bars
- Refined bars
- Investment-grade bullion bars
The term “bar” alone does not establish purity.
Beneficial Owner
A beneficial owner is the person who ultimately owns or controls a company or legal entity.
Beneficial ownership can be relevant to:
- KYC
- AML
- Sanctions screening
- Counterparty due diligence
Beneficial Ownership
Beneficial ownership refers to identifying the natural person or persons who ultimately own or control a company.
This can be more important than simply identifying the company name.
Bullion
Bullion generally refers to high-purity precious metal held or traded primarily for its metal value.
Bullion can include:
- Bars
- Coins
- Other standardized forms
Bullion Dealer
A bullion dealer is a business that buys and sells physical precious metals.
C
Carat / Karat
Karat is a traditional measure of gold purity.
Pure gold is generally described as 24 karat.
Examples:
- 24K – very high purity
- 22K – lower purity
- 18K – contains more alloy metals
In professional transactions, exact assay percentages or fineness can provide more precise information.
Certificate of Origin
A Certificate of Origin is a document that identifies the declared country where the goods originated.
In gold transactions, this can be important because:
Country of Origin may be different from Country of Export.
Chain of Custody
Chain of custody records how gold moves from one party or location to another.
For example:
Mine → Dealer → Warehouse → Assay Facility → Exporter → Logistics Provider → Refinery
It helps establish who had control of the gold at each stage.
Chain of Title
Chain of title refers to the sequence of legal ownership transfers.
It answers:
Who owned the gold before?
How did the current seller acquire ownership?
Chain of title and chain of custody are related but not identical.
CIF – Cost, Insurance and Freight
CIF is an Incoterm used for sea and inland-waterway transport.
It allocates certain cost, freight and insurance responsibilities between buyer and seller.
Because international gold is often moved by air, parties should confirm whether CIF is actually appropriate before using it.
CIP – Carriage and Insurance Paid To
CIP is an Incoterm that can apply across multiple transport modes.
It involves seller-arranged carriage and insurance to an agreed destination, subject to the applicable Incoterms rules.
Commercial Invoice
A commercial invoice is a key transaction document showing information such as:
- Seller
- Buyer
- Product
- Quantity
- Price
- Currency
- Origin
- Destination
Compliance
Compliance means operating according to applicable laws, regulations, contractual requirements and relevant industry standards.
In gold transactions, compliance can involve:
- Mining laws
- Export regulations
- Customs
- KYC
- AML
- Sanctions
- Responsible sourcing
Conflict-Affected and High-Risk Areas – CAHRA
CAHRA refers broadly to areas affected by conflict or elevated risks involving governance, human rights, security or illegal trade.
Gold sourced from higher-risk areas may require enhanced due diligence.
Consignee
The consignee is the party named to receive a shipment.
This may be:
- Buyer
- Refinery
- Secure logistics provider
- Other authorized recipient
Customs Declaration
A customs declaration is information submitted to customs authorities regarding goods being imported or exported.
It can include:
- Exporter
- Consignee
- Product
- Weight
- Value
- Origin
- Destination
D
DAP – Delivered at Place
DAP is an Incoterm under which the seller delivers goods to an agreed destination, subject to the applicable rules.
The parties should understand how:
- Freight
- Risk
- Import responsibilities
- Other costs
are allocated.
Dealer Licence / Mineral Dealing Licence
A mineral dealing licence or permit can authorize certain mineral trading activities depending on the jurisdiction.
It should not automatically be assumed to authorize every activity, including international export.
Delivery Terms
Delivery terms define where and how the seller delivers goods to the buyer.
They may address:
- Place of delivery
- Risk transfer
- Freight
- Insurance
- Export responsibilities
Discount
A discount is a reduction from an agreed benchmark or reference price.
In gold trading, discounts should be evaluated alongside:
- Purity
- Refining
- Logistics
- Compliance
- Transaction risk
Doré
See Gold Doré.
Due Diligence
Due diligence is the process of investigating and verifying a transaction before making significant commitments.
It can include:
- Company verification
- Product verification
- Ownership
- Origin
- Licences
- Documents
- Payment
- Export readiness
- Compliance
E
Enhanced Due Diligence – EDD
Enhanced Due Diligence is a deeper level of investigation used when transaction risk is elevated.
EDD may be appropriate where:
- Origin is unclear
- Ownership is complex
- Multiple intermediaries are involved
- Cross-border movements are unexplained
- Sanctions concerns exist
- Conflict-risk is higher
Escrow
Escrow is an arrangement where an independent party holds funds or other assets until agreed contractual conditions are satisfied.
Escrow Agent
An escrow agent is the independent person or institution responsible for holding and releasing escrowed assets according to the agreement.
Export Authorization
Export authorization refers generally to the official permission required to export regulated goods.
Exact terminology differs between jurisdictions.
Export Country
The export country is the jurisdiction from which the international shipment departs.
It is not necessarily the same as the country of origin.
Export Permit
A mineral export permit is an official authorization that may be required before a mineral shipment can leave a country.
Requirements vary.
Exporter
The exporter is the legal party responsible for the export transaction.
The exporter may or may not be the same entity as the owner or seller.
F
FCA – Free Carrier
FCA is an Incoterm where the seller delivers goods to the carrier or another agreed party at a named place.
It can be suitable for multiple modes of transport, subject to proper use.
Fine Gold
Fine gold refers to the actual pure gold content within the material.
A 1 kg doré bar does not necessarily contain 1 kg of fine gold.
Fine Gold Content
Fine gold content refers to the actual amount of pure gold within a product.
Conceptually:
Material Weight × Verified Purity = Approximate Fine Gold Content
Fineness
Fineness expresses purity in parts per thousand.
Examples:
- 950 = 95.0%
- 970 = 97.0%
- 999.9 ≈ 99.99%
Final Assay
The final assay is the assay result used for final settlement where agreed by buyer and seller.
Often this can be the receiving refinery’s assay.
Fire Assay
Fire assay is a traditional laboratory method used to determine precious-metal content.
It is often considered more definitive than simple surface testing when properly performed.
FOB – Free on Board
FOB is an Incoterm traditionally used for sea or inland-waterway transport.
It should not automatically be used for air cargo.
G
Gold
Gold is a precious metal valued for its rarity, durability, conductivity and monetary significance.
It is traded in multiple forms, including:
- Doré
- Refined bars
- Nuggets
- Bullion
Gold Buyer
A gold buyer is an individual or company purchasing physical gold.
Professional buyers can include:
- Refineries
- Bullion dealers
- Traders
- Jewellery manufacturers
- Institutional buyers
Gold Dealer
A gold dealer is a company or person involved in purchasing and reselling gold, subject to applicable laws.
Gold Doré
Gold doré is a semi-refined mixture of gold, silver and other metals produced before final refining.
Its purity varies significantly.
Doré should therefore be assayed before final valuation.
Gold Dust
Gold dust is a commonly used commercial term for fine gold-bearing material.
Because the term can be vague, buyers should insist on clear product description, sampling and assay.
Gold Exporter
A gold exporter is the company legally responsible for exporting gold from the country of shipment.
Gold Mine
A gold mine is an operation where gold-bearing ore or material is extracted from the ground.
Gold Nugget
A gold nugget is a naturally occurring piece of gold-bearing material.
Nuggets can vary significantly in purity.
Gold Purity
Gold purity is the proportion of gold contained within the material.
It can be expressed as:
- Karat
- Percentage
- Fineness
Gold Refinery
A gold refinery processes gold-bearing material into higher-purity gold.
Refineries can perform:
- Weight verification
- Sampling
- Assay
- Melting
- Refining
- Settlement
Gold Seller
A gold seller is the legal party offering gold for sale.
The seller should not automatically be assumed to be the mine owner.
H
Hallmark
A hallmark is a marking that can indicate information such as purity, manufacturer or refinery.
Hallmarks should not replace independent verification where transaction risk warrants testing.
High-Value Cargo
High-value cargo refers to shipments with significant monetary value requiring enhanced security, insurance and handling.
Gold commonly falls within this category.
I
ICGLR
ICGLR stands for International Conference on the Great Lakes Region.
It has developed regional tools addressing mineral traceability and responsible sourcing, including designated minerals such as gold.
Incoterms
Incoterms are standardized trade terms published by the International Chamber of Commerce.
They help allocate certain:
- Delivery responsibilities
- Costs
- Risks
Examples include:
- FCA
- CIF
- CIP
- DAP
Incoterms do not automatically determine payment or legal title unless separately addressed.
Insurance Certificate
An insurance certificate provides evidence of insurance coverage for a shipment or transaction.
It should be reviewed for:
- Insurer
- Insured party
- Cargo
- Value
- Route
- Coverage period
International Gold Benchmark
A recognized gold-market reference used for commercial pricing.
The final transaction price may differ due to purity, refining and other commercial factors.
J
Jewellery Gold
Gold used in jewellery manufacturing.
Jewellery gold may have lower purity than investment bullion because it is mixed with other metals for strength or color.
K
Karat
See Carat / Karat.
KYC – Know Your Customer / Know Your Counterparty
KYC is the process of identifying and understanding the party with whom a business is dealing.
It can involve:
- Company registration
- Directors
- Beneficial ownership
- Authorized representatives
- Business activity
L
Laboratory Assay
A laboratory assay is a technical analysis performed by a qualified laboratory to determine composition.
LBMA
LBMA stands for the London Bullion Market Association.
It is a major international trade association connected with the global wholesale precious-metals market.
The term is often used in gold transactions when discussing benchmark pricing or refinery standards.
Legal Origin
Legal origin means that gold was sourced and moved through the supply chain in compliance with applicable laws.
Logistics Provider
A logistics provider manages or coordinates transportation and related services.
For gold, this can include:
- Secure collection
- Storage
- Airport handling
- International freight
- Destination delivery
LOI – Letter of Intent
An LOI is a document expressing preliminary commercial intent.
A gold buyer’s LOI can describe:
- Product required
- Quantity
- Destination
- Purchasing programme
An LOI is not necessarily the final purchase contract.
M
Mandate
In gold trading, a mandate generally refers to a person claiming authority to represent a buyer or seller.
The claimed authority should be independently verified where appropriate.
Mine of Origin
The mine of origin is the mining location where the gold was produced.
This can be important for responsible sourcing and provenance.
Mineral Dealer
A mineral dealer is a business engaged in purchasing and selling minerals under applicable law.
Mineral Export Permit
See Export Permit.
Mineral Rights
Mineral rights are legal rights to explore, develop or extract minerals within a specified area.
Mining Licence
A mining licence is government authorization allowing mining activities under specified conditions.
A mining licence does not automatically establish ownership of all gold presented in a transaction.
MOQ – Minimum Order Quantity
MOQ refers to the minimum quantity a supplier is willing to sell in a transaction.
N
Net Weight
Net weight is the weight of the product excluding packaging and certain other materials.
Nugget
See Gold Nugget.
O
OECD Due Diligence Guidance
The OECD Due Diligence Guidance provides a recognized framework for companies seeking to identify and manage risks within mineral supply chains, particularly those involving conflict-affected and high-risk areas.
Offtake Agreement
An offtake agreement is a contract where a buyer agrees to purchase future production or recurring supply from a producer or supplier.
It can establish:
- Quantity
- Pricing
- Delivery
- Specifications
- Contract term
Origin
Origin refers to where the gold was originally produced.
Origin should not be confused with the export location.
Ownership
Ownership refers to legal title over the gold.
The person physically holding gold may not necessarily be the legal owner.
P
Packing List
A packing list describes the physical contents of a shipment.
It can include:
- Packages
- Bar count
- Weight
- Seal numbers
- Identification numbers
Payable Gold
Payable gold refers to the amount of gold value that is actually used for commercial settlement after agreed refinery adjustments or deductions.
Payment Beneficiary
The payment beneficiary is the party legally designated to receive funds.
Buyers should understand why the beneficiary is receiving payment.
PEP – Politically Exposed Person
A PEP is a person who holds or has held a prominent public function, or in some compliance frameworks, certain close associates or family members.
PEP status does not automatically indicate wrongdoing but may require enhanced due diligence.
Preliminary Assay
A preliminary assay provides an initial estimate of composition or purity before final settlement.
Precious Metals
Precious metals include valuable metals such as:
- Gold
- Silver
- Platinum
- Palladium
Premium
A premium is an amount added above a benchmark or reference price.
Provenance
Provenance refers to the history and origin of the gold.
It can include:
- Mine
- Producer
- Dealer
- Ownership
- Cross-border movement
Q
Qualified Buyer
A qualified buyer is a serious commercial purchaser able to provide appropriate corporate and transaction information and demonstrate realistic buying requirements.
R
Refinery
See Gold Refinery.
Refinery Assay
A refinery assay is the test performed by a refinery to determine precious-metal content.
It may be used as the final settlement assay where contractually agreed.
Refining
Refining is the process of purifying gold by removing other metals and impurities.
Refining Charge
A refining charge is the fee charged by a refinery for processing the material.
Responsible Sourcing
Responsible sourcing is the process of identifying and managing material social, legal, financial-crime and conflict-related risks within a supply chain.
Royalty
A royalty is a statutory payment that may apply to mineral production or sales depending on the jurisdiction.
S
Sanctions
Sanctions are legal restrictions imposed by governments or international bodies against certain persons, entities, countries or activities.
Sanctions considerations can affect gold transactions.
Sanctions Screening
Sanctions screening involves checking relevant transaction parties against applicable sanctions restrictions.
Seller Representation
Seller representation involves acting commercially on behalf of a legitimate supplier in dealings with potential buyers.
Settlement
Settlement refers to the final financial completion of the transaction.
For doré, settlement may occur after final refinery assay.
Shipment
A shipment is the physical consignment of gold being transported.
Source of Funds
Source of funds refers to understanding where the buyer’s payment money comes from.
This can be relevant to AML compliance.
Source of Gold
Source of gold refers to understanding where and how the seller obtained the gold.
SPA – Sales and Purchase Agreement
An SPA is the main commercial contract between buyer and seller.
It can address:
- Product
- Quantity
- Purity
- Price
- Assay
- Payment
- Delivery
- Export
- Settlement
Spot Transaction
A spot transaction is generally a single or immediate purchase rather than a recurring long-term supply contract.
Supply Capacity
Supply capacity is the amount of gold a supplier can realistically provide over a defined period.
Claims of very large supply should be supported by credible production or aggregation capability.
T
Title Transfer
Title transfer refers to the point when legal ownership of the gold passes from seller to buyer.
This should be clearly defined in the contract.
Traceability
Traceability refers to the ability to follow the gold through its supply chain.
It can involve:
- Origin
- Ownership
- Movement
- Documentation
Trial Shipment
A trial shipment is an initial transaction used to test performance before larger recurring purchases.
Transaction Structuring
Transaction structuring is the process of designing how a gold transaction will operate.
It can cover:
- Price
- Assay
- Payment
- Export
- Logistics
- Delivery
- Settlement
Transit Country
A transit country is a jurisdiction through which goods pass on the way to another destination.
Transit does not automatically change the original country of origin.
U
Umpire Assay
An umpire assay is an independent assay used to resolve a dispute between differing assay results.
The process should ideally be agreed in advance.
V
Valuation
Valuation is the process of determining the commercial value of gold.
It can consider:
- Weight
- Purity
- Benchmark
- Refining
- Commercial terms
Verification
Verification is the process of independently checking information rather than accepting it at face value.
W
Warehouse Receipt
A warehouse receipt can provide evidence that goods were received into storage.
It does not automatically prove legal ownership or product quality.
Weight Verification
Weight verification confirms the physical mass of the gold.
It should be documented and aligned with assay and shipment records.
X
XRF – X-Ray Fluorescence
XRF is a non-destructive method used to analyze the elemental composition of metal.
It is useful for rapid screening but may primarily assess surface composition.
For major commercial transactions, more comprehensive testing may be appropriate.
Y
Yield
Yield in refining or processing can refer to the amount of recoverable precious metal obtained from the material.
It should not be confused with investment return.
Z
Zero-Risk Transaction
There is no truly zero-risk commercial gold transaction.
Professional due diligence, assay, documentation, payment protection and logistics can reduce risk but cannot eliminate it completely.
Gold Trading Terms Explained
Doré vs. Refined Gold
Doré
Semi-refined material with variable gold content.
Refined Gold
Material processed to achieve higher purity.
Purity vs. Fineness
Purity
General percentage of gold present.
Fineness
Purity expressed in parts per thousand.
For example:
97% = 970 fineness
Country of Origin vs. Country of Export
Country of Origin
Where the gold was produced.
Country of Export
Where the international shipment departed.
They are not always the same.
Chain of Custody vs. Chain of Title
Chain of Custody
Who physically controlled the gold.
Chain of Title
Who legally owned the gold.
Preliminary Assay vs. Final Assay
Preliminary Assay
Initial testing before final settlement.
Final Assay
The assay result contractually used for final settlement.
Buyer vs. Consignee
Buyer
Purchases the gold.
Consignee
Receives the shipment.
They may be the same company, but not always.
Seller vs. Exporter
Seller
Sells the gold.
Exporter
Legally handles the export.
They can be different entities where lawful and properly documented.
Common Gold Pricing Terms
Benchmark Price
The reference market price used in the pricing formula.
Discount
Reduction from the benchmark.
Premium
Amount added above the benchmark.
Fine Gold Value
Value of the actual recoverable gold content.
Refining Charges
Fees deducted for processing.
Final Settlement Value
The amount due after applying the agreed commercial formula.
Common Gold Compliance Terms
KYC
Know Your Customer / Counterparty.
AML
Anti-Money Laundering.
EDD
Enhanced Due Diligence.
PEP
Politically Exposed Person.
Sanctions Screening
Review for applicable legal restrictions.
Responsible Sourcing
Risk-based evaluation of mineral supply chains.
Common Gold Export Terms
Export Permit
Official authorization for export where required.
Certificate of Origin
Document stating declared origin.
Commercial Invoice
Transaction invoice.
Packing List
Physical shipment description.
Air Waybill
Air cargo transport record.
Customs Declaration
Information submitted to customs.
Common Gold Logistics Terms
Secure Transport
Specialized transportation for high-value cargo.
Chain of Custody
Documented handover process.
Consignee
Receiving party.
Cargo Insurance
Insurance covering the shipment.
Destination Agent
Party coordinating arrival-side logistics.
Common Gold Investment Terms
Offtake
Agreement to purchase future production.
Equity Investment
Investment in ownership of a business.
Debt Financing
Capital provided as a loan or debt facility.
Mine Acquisition
Purchase of a mining business or project.
Project Due Diligence
Commercial, legal, technical and financial assessment of an investment opportunity.
Frequently Confused Gold Terms
“Gold Bar” Does Not Automatically Mean Refined Gold
A bar can be:
- Doré
- Refined
- Cast
- Bullion
Always ask for purity and assay information.
“24K” Does Not Replace Assay
The term suggests high purity, but professional transactions should rely on technical verification.
“Licensed Company” Does Not Automatically Mean “Licensed Exporter”
Different activities can require different authorizations.
“Assayed Gold” Does Not Automatically Mean “Owned Gold”
Assay and ownership are separate issues.
“Exported From Uganda” Does Not Automatically Mean “Ugandan Origin”
Origin and export location can differ.
“Escrow” Does Not Automatically Mean “Safe Transaction”
Escrow addresses one aspect of payment risk but does not verify the underlying gold.
Gold Transaction Acronyms
AML
Anti-Money Laundering
AWB
Air Waybill
CAHRA
Conflict-Affected and High-Risk Areas
CIF
Cost, Insurance and Freight
CIP
Carriage and Insurance Paid To
DAP
Delivered at Place
EDD
Enhanced Due Diligence
FCA
Free Carrier
FOB
Free on Board
ICGLR
International Conference on the Great Lakes Region
KYC
Know Your Customer / Counterparty
LBMA
London Bullion Market Association
LOI
Letter of Intent
MOQ
Minimum Order Quantity
OECD
Organisation for Economic Co-operation and Development
PEP
Politically Exposed Person
SPA
Sales and Purchase Agreement
XRF
X-Ray Fluorescence
Why Gold Terminology Matters
Misunderstanding terminology can create real commercial problems.
For example:
A buyer may assume “CIF” means the seller covers every possible cost.
A seller may describe gold as 24K without an independent assay.
A trader may describe the export country as the origin.
A buyer may treat an assay certificate as proof of ownership.
These misunderstandings can affect:
- Pricing
- Contracts
- Compliance
- Export
- Payment
- Settlement
Understanding terminology helps reduce ambiguity.
How Lumia Gold & Minerals Uses These Terms
Across our website, we use industry terminology carefully.
Our related resources include:
Gold Buying Guide
Learn how the full buying process works.
[ Read Gold Buying Guide → ]
Due Diligence Guide
Understand verification and transaction risk.
[ Read Due Diligence Guide → ]
Export Guides
Understand export terminology and procedures.
[ Read Export Guides → ]
FAQs
Find answers to common gold questions.
[ Browse FAQs → ]
Industry Insights
Explore deeper market and technical topics.
[ Explore Industry Insights → ]
Suggest a Gold Term
The precious-metals industry evolves, and clients regularly encounter new terminology.
If you have seen a gold, mining, export, refinery or investment term you would like us to explain, submit it to our team.
[ Suggest a Glossary Term → ]
Understand the Language. Understand the Transaction.
The gold industry can become unnecessarily confusing when technical terms are used without explanation.
Our goal is to make professional gold terminology easier to understand.
Before entering a major transaction, make sure you understand:
What the product is.
How purity is measured.
What each document does.
Who owns the gold.
Who exports it.
How payment works.
Who receives the shipment.
How final settlement is calculated.
Clear language creates clearer expectations. Clear expectations support stronger transactions.
Lumia Gold & Minerals Gold Glossary
Practical definitions for African gold sourcing, trading, exports, refining, compliance and investment.
Need Help With a Gold Transaction?
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This glossary is provided for general educational and commercial information. Definitions may vary depending on jurisdiction, contract and industry context. Nothing on this page constitutes legal, tax, financial, investment, customs, technical or regulatory advice. Users should verify transaction-specific terminology and requirements with appropriately qualified professionals and relevant authorities.