GLOSSARY

Shanghai Gold Exchange

The Shanghai Gold Benchmark Price, or Shanghai Gold Fix, is the result of an auction held twice daily on trading days by the Shanghai Gold Exchange (SGE), at 10:15 am and 2:15 pm, Beijing Time. The Shanghai Gold Exchange facilitates both on-exchange and off-exchange gold contract trading as well as a daily gold price auction and gold leasing.

Shinka

The Shinka is a traditional hair jewel of Gujarat. It is an exquisite ornament which is held in place by the unusual method of gold hooks attached to the hair. It consists a series of heavy gold chains held by flat metal strips or carved traditional motifs of peacocks.

Slabbed coins

These are coins encapsulated in plastic to ensure that they are protected against any natural wear and tear. In normal course, slabbed coins are graded by one of the two major grading services.

Smelting

It is a way to extract many metals from their ores, including silver, iron, gold etc. The process involves the use of heat and chemical reducing agents to decompose the ore. All other elements get removed as gases or slag leaving behind the desired metal.

Sovereign Gold Bond

Sovereign Gold Bonds are issued by the Reserve Bank of India on behalf of the Government of India. As investors get returns that are linked to gold price, the scheme offers the same benefits as physical gold. They can be used as collateral for loans and can be sold or traded on stock exchanges.

Speculative Position

The maximum long or short that a futures or options exchange any trader to hold. This varies according to product and contract month.

Spot Market

The spot market is a present delivery market where fiscal instruments, such as commodities and securities, are traded at 'spot prices' for immediate delivery. Delivery is the exchange of cash for the financial instrument.

Spot Price

The spot price is the price at which a commodity could be transacted at and delivered in the current market. The spot price of gold is the price of one ounce of gold currently.

Streedhan

Refers to any gold or other gifts given to a woman in India either in her childhood, before marriage, after marriage, or at any point in her life. The ownership of Streedhan rests completely with the receiver of the gift. Thus, the gold cannot be touched without her permission.

Symbolic Face Value

For the various traded material such as coins, stamps or paper money, their true value (nominal value) is referred to as face value. However, sometimes the face value may just hold symbolic significance and may be different from what people will pay due to maybe the history, etc. associated with the material, and is called the symbolic face value