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 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.
Krugerrand
Refers to a South African gold coin.
Nugget
Refers to a modern gold bullion coin, which is created by Australia and is 0.9999 fine.
Unallocated gold
It refers to a book-keeping mechanism that is used by banks or other enterprises to provide investors with notional gold.
Rally
Refers to a continued upward trend in terms of gold prices or of any commodity.
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.
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.
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.