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What's a "Premium" Letter/Word?

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I often have seen the price of domains being very high (like LLLL.com TRIPLE PREMIUM etc), but I have no idea what "premium" means. Which letters are considered to be "premium"? Also, which words are considered "premium"?

I really would like to get into the domaining market, but I like to get a solid background before I actually do anything.

Thanks.
 
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General concensus states that the letters A, B, C, D, E, F, G, H, I, L, M, N, O, P, R, S, T are considered premium letters. Other lesser high quality letters include: J, K, U, V, W. Lower quality letters include: Q, X, Y, Z. Domains selling for less than the above figures would represent a strong buy in today's market. Premium letter only domains tend to fetch a 500% to 600% premium (or more) over the Minimum Wholesale Price. Mixed letter quality domains have valuations somewhere in the middle of these two extremes.
 
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