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The Gold Glossary

Gold Glossary

  • Gold Accumulation Plan

    A gold accumulation plan enables customers to invest in gold using monthly instalments. Physical gold can be accumulated over the course of one year to fifteen years.

  • Gold as a hedge

    Gold is the best possible hedge against inflation since the rising prices can be offset by the simultaneous rise in gold prices.

  • Gold fund

    Refers to a mutual fund or Exchange Traded Fund (ETF) that invests primarily in various gold manufacturing companies or gold bullion. The share price within a gold fund would closely match the spot price of gold itself. Please note that the major assumption here is that the mutual fund holds majority of its assets in gold or in stocks/bonds of gold miners/ manufacturers.

  • Gold futures

    Gold futures are instruments that are traded on the MCX. One can buy into these gold futures in order to invest in gold. These futures contracts tend to track gold prices. Moreover, the investors have to ensure that they settle these futures contracts by pre-determining a closing date.

  • Gold monetisation scheme

    The Indian government on May 19, 2015 announced that it will soon start its Gold Monetisation Scheme. As per this scheme, every Indian investor will be permitted to deposit a minimum of 30 grams of gold or jewellery in a bank to gain interest.