GLOSSARY

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.

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.

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.

Assaying

The process carried out to measure and test the precious metal composition is called assaying. It ensures that the gold coins or bars produced by a mint meet the ideal purity standards.

Asset class

Asset class is an investment option available to the investors. Gold is a popular asset class in which many prefer to invest.

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.

Bullion

Bullion includes precious metals in the form of bars of minimum 99.5% purity.

Bullion coin

It is a coin, which possesses a symbolic face value and trades at a price with respect to its intrinsic value.

Canadian Maple Leafs

The Government of Canada issues its own gold bullion coin called Canadian Gold Maple Leaf (GML). It was introduced in 1979 by the Royal Canadian Mint. While the standard version has a weight of minimum 1 ounce, other sizes and denominations are also available namely, ​1⁄25 ounce, ​1⁄20 ounce, ​1⁄10 ounce , ​1⁄4 ounce and ​1⁄2 ounce. Its obverse side carries the profile of Queen Elizabeth II of Canada, and the reverse side carries the embossment of Canadian Maple Leaf

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.

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.

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.

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. This is a system to ensure that the gold supplied meets the 'Good Delivery' standards.

Chandrahaar

Chandrahaar is a traditional Bengali necklace design. It derives its etymology from Hindi words 'chandra' meaning moon and 'haar' meaning necklace and is made with a layer of chains consisting of minute gold balls.

Chinese Panda

The People's Republic of China introduced a series of bullion gold coins in 1982 called Chinese Panda. The obverse side contains the design of the 'temple of heaven' and with Chinese characters on top saying "Zhonghua Renmin Gongheguo" meaning People's Republic of China and the design of the Panda displayed on the reverse side of the coin is changed every year. It earlier came in variants ranging from 1/20 ounces to 1 ounce, but since 2016 the metric weight system of grams was introduced.

Chur

A chur is a type of broad and flat gold bracelet worn by Bengali women. While the traditional designs require a minimum of 40-50 grams of gold to make each piece, contemporary designs can be crafted in around 25 grams of gold per piece.

Commodities market

It is a market where investors trade in primary products rather than manufactured products. Agricultural products such as wheat, coffee, cocoa, and sugar are called soft commodities whereas mined commodities such as gold and oil are called hard commodities. MCX in India, COMEX in London, and NYMEX in the US are popular commodity exchanges.

Direct investment

Direct investment refers to direct purchase of gold in physical forms such as coins, bars, and jewellery.

Dore Bar

Dore bar is the rough gold produced by gold mines. It is basically a bar made up of around 80 percent pure gold which is further refined into gold of different forms and purity.

Electroplating

Electroplating is the proces of applying a thin layer of metal coating on another piece of metal by electrodeposition. The deposited metal then becomes a part of the existing product.