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When first dipping your toe in the gold market it is essential to have a basic grasp of the day to day workings of the market and its terminology. You need to understand just what you are investing in.
GOLD is a malleable yellow element found in veins or deposits, which is then mined. It is sold in BARS/BULLION and weighed in TROY OUNCES.
The GOLD STANDARD is the monetary system used to convert money into gold. However, gold bars must conform to the GOLD DELIVERY STANDARD before they can be sold. GOLD CERTIFICATES are issued to prove you own the gold bullion; you don’t have to hold it physically.
Gold is traded on the GOLD MARKET. When analysts expect prices to fall they refer to the market as a BEAR market and when they raise, a BULL market. Buyers make a BID to buy gold and when a seller offers to sell it is referred to as an ASK. |