| DEFINITIONS AND NOTES |
Bullion coin: A coin made from a precious metal (in our case silver). It is not Legal Tender (see below) and is used for private purposes only. See also Silver Rounds. |
Die: Metal piece designed with the coin’s image and used in stamping the finished product. |
Face Value (or trade value): The value that is struck on the coin. Please note: DelValley silver tokens do not have a face value, relying on the free market to set their trade value. |
| Intrinsic Value: The current market value of a coin. In our case the intrinsic value of DelValley silver would be the current market value of an ounce of silver. |
| Legal Tender: Coins which must be accepted in payment of debt and is government issued. DelValley silver is not legal tender! It cannot be represented as such. |
Market Value: Bullion coins sell for more than their intrinsic value of the metal. This is due to their small size and the costs associated of making the die, manufacturing, labor and shipping costs. |
Medium of Exchange: A marker used in trade to provide flexibility to a pure barter system. In the DelValley network we use silver as that medium. Silver works because it is easily carried around, able to be divided into smaller quantities, counterfeit resistant, easily recognizable and has a market value of its own. |
| Milled Edge: See Reeded Edge. |
Mint Mark: Small letters or symbols showing which mint struck the coin. DelValley tokens are all minted at the Golden State Mint, as verified by their Mint Mark – GSM. |
| Obverse: The front side of the coin. Opposite of ‘Reverse’. |
| Purity: The most common purity in silver bullion coins is .999 (99.9%). A 100% silver purity isn’t possible in order for the silver to keep its shape. |
Reeded Edge: The grooved edges around the coin. This is often placed there as an easy way to verify the coin hasn’t been filed down, thus less weight than represented. Another term for this is – milled edge. |
| Reverse: The back side of a coin. Opposite of 'Obverse'. |
| Round: One ounce of bullion. |
Silver Rounds: Privately minted bullion coins are commonly called "silver rounds". These coins usually have a set weight of 1 troy ounce and have a purity of .999 (99.9%). |
| Spot Price: The quoted market value of one troy ounce of a precious metal (silver) of bullion. |
Tokens: Are privately issued coins that are redeemable for goods and services within a private locality. Tokens are not issued by the government and are not Legal Tender! DelValley Silver rounds are tokens and are redeemable only within the DelValley network. |
| Trade Value: See face value. |
| Troy Ounce: A unit for measuring silver, 31.103 grams |
| References: |
Dictionary.com
Answers.com |
