GLOSSARY

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 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.

Gold Eagles

The Government of the United States initiated issuing the official gold coin known as the Gold Eagles in 1986. These come in dominations of 1/10 ounce, 1/4 ounce, 1/2 ounce and 1 ounce. The US government guarantees that each goin will contain the stated amount of actual gold weight in ounces. The obverse design is embossed a rendition of Lady Liberty by Augustus Saint-Gaudens and the Capitol building in the left background. The reverse side features a design showcasing a male eagle carrying an olive branch above a nest containing a female eagle and her hatchlings.

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. This system allows any country following it to be able to keep its currency at par with gold without the trouble of maintaining a large gold reserve.

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 Investor Index

The Gold Investor Index measures the number of people whose gold position rose or fell during the month.

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. The loan amount is usually a percentage of the gold’s value. You can repay the loan through monthly instalments. After the repayment, you get back your gold jewellery. Nationalised banks, private banks, and other financial institutions offer these loans at affordable interest rates. 

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.

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.

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.

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.

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.

Gold-Silver Ratio

It is the number of ounces of silver required to purchase one ounce of gold.

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.

GST

Goods and Services Tax is an Indian indirect system of tax . The act came into effect on 1st July, 2017. It is a value-added tax which is levied on manufacture, sale and consumption of goods and services.

Guloband

Tied around the neck like a choker, a galobandh is made of gold and worn by the married women of Kumaon, Garhwal, Bhotiya, and Jaunsar regions of Uttarakhand. It is designed on a red belt with square gold blocks arranged on it with the help of a thread.

Gunus

It is a traditional Kashmiri bangle. It has a unique design consisting of two snake or lion heads at its two ends and is generally made of solid gold or silver.