Glossary
1. Allocated gold
Refers to physical bullion that is stored in a professional vault for safekeeping whose outright ownership belongs to the investor of the stored gold.
2. Alloy
An alloy is any metal made by combining two or more metallic elements. The combination of different metals imparts better properties to the final metal.
3. Antique Jewellery
The term is used to refer to either very old jewellery that has been owned previously or jewellery that has been created using very traditional styles associated with a bygone era.
4. Assaying
5. Asset class
Asset class is an investment option available to the investors. Gold is a popular asset class in which many prefer to invest.
6. BIS Hallmark
It is a hallmarking system for gold and silver jewellery in India. Bureau of Indian Standards (BIS) Hallmark is used for certifying the purity of gold/silver. BIS Hallmark on a gold product certifies that it complies with the standards laid down by the Bureau of Indian Standards, the national standards organisation of India.
7. Capital appreciation
Refers to appreciation or increase of the original capital amount invested in gold. In India, historically, gold prices have shown general tendency of appreciating.
8. Capital gains
Capital gains refer to the gains that the investors in gold have made from the sale of gold. Capital gains on gold are taxed in India. Therefore, one must make sure to ask for a proper bill while purchasing gold.
9. Carat
The carat, also written as ct is a unit of measurement of precious gemstones and pearls. The weight of one carat is equal to 200 mg.
10. Chain Of Integrity
The Chain of Integrity refers to a system consisting of a safe supply chain comprising of authorised refineries, high-security logistics providers, secure storage providers, auditors, banks etc.
11. Fine Weight
Fine weight is the metallic weight of a coin or bar, excluding the weight of the alloy metal.
12. Fineness
It is the purity of a precious metal that is measured in 1,000 parts of an alloy.
13. Fool’s Gold
This is a phrase used for any yellow-coloured metal that may get mistaken for gold.
14. Futures Price
The price of a particular commodity at a set future date is called the futures price.
15. Gold Bullion Investment Trust
Investment trusts are specific companies whose primary business is investing the shareholders’ funds, and whose shares are traded just like any other public company. Gold bullion investment trusts have exposure to gold bullion.
16. Gold Exchange Standard
It is a fiscal system under which a nation’s currency’s exchange rate is fixed to the value of another country’s currency which is convertible into gold at a stable rate of exchange.
17. Gold Investor Index
The Gold Investor Index measures the number of people whose gold position rose or fell during the month.
18. Gold Loan
Gold loans are secured loans where gold jewellery is used as collateral. You pledge your gold jewellery with the lender and get a loan.
19. Gold Sovereign Bond
These are government securities with denominations in grams of gold. They are an ideal way of investing in gold without holding it in physical form. The investors have to pay the issue price of securities in cash, and at maturity, the bonds are also redeemed as cash.
20. Gold Standard
Gold standard is a fiscal system which links the value of a country’s legal tender to gold. Under the terms of this standard, countries agree to convert currency into a certain amount of gold. A country following the gold standard decides a fixed price for gold based on various market conditions and buys and sells gold at that price. That price has a bearing on the value of the currency.
21. Gold-filled Jewellery
Gold-filled jewellery consists of a solid layer of gold mechanically bonded to a base. The base may be made either of sterling silver or some other metal.
22. Gold-Plated Jewellery
Gold plated jewellery is made through a process where another metal is covered with a very thin layer of gold through electroplating.
23. Gold-Silver Ratioy
It is the number of ounces of silver required to purchase one ounce of gold.
24. Green Gold
Green gold refers to an alloy of gold with silver or cadmium, which is responsible for adding the green colour to the metal.
25. Karat
Karat is a unit of gold purity with 24 karat gold being the purest form. Karats are calculated by multiplying the mass of pure gold in the coin by 24, then dividing it by the total mass of the coin.
26. Kilo bar
Refers to a bar that weighs one kilogram or approximately 32.1507 troy ounces.
27. Kundan
This is a type of traditional jewellery native to India. This type of jewellery involves beating up gold into very thin strips and shaping it into various forms to prepare the base. Various precious stones are set onto this base.
28. Legend
Refers to an inscription that is made on a coin.
29. Making Charge
Making charge is the cost of the entire process of producing and designing the gold jewellery and is charged in addition to the metal value and taxes.
30. Malleability
The special property of a metal that makes it conducive to being bent and twisted into any shape without breaking or the appearance of cracks in it is known as malleability.
31. Market Value
Market value is the price for which anything can be sold on the open market. It is the highest price that a buyer may be willing to pay.
32. Melt Value
Melt Value is the value of a coin based on the quantity of its constituent metals. It refers to the value of the precious metal that can be attained by melting the coin. For gold coins, it is the value of gold in the coin.
33. Metric ton
It is a measurement tool, which translates to 1,000 kilograms or 32,151 troy ounces.
34. Mint mark
Refers to a letter or symbol, which is stamped on a coin in order to recognise its minting facility.
35. Minting
It is the production or manufacturing of currency or gold coins at a very large scale. A mint is a factory that manufactures currency in the form of coins, medals and other metal objects.
36. Paper gold
It refers to the various investment products that are related to gold prices. However, the investor does not gain physical ownership of gold.
37. PCGS
Professional Coin Grading Service (PCGS) is a coin grading and authentication service. It is a certification body for coins, founded in 1985.
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