Legend
Refers to an inscription that is made on a coin.
Medallion
It is a round piece of metal that closely resembles a coin.
Bullion
Bullion includes precious metals in the form of bars of minimum 99.5% purity.
MCX
The Multi Commodity Exchange of India Limited (MCX) is India’s first listed exchange for commodity futures. MCX facilitates online trading, clearing, and settlement of commodity futures transactions. It offers trading in numerous commodity futures contracts, which include gold, ferrous and non-ferrous metals, energy, and agricultural commodities.
Exit load
Refers to the commission paid by the investor during the time of exiting the mutual fund or Gold Exchange Traded Fund (ETF). The main purpose behind imposing the charge is to discourage investors from withdrawing from the mutual fund prematurely.
Entry load
It is the entry fee charged by the gold ETF when an investor wants to invest in that mutual fund. The mutual fund calculates this charge as a percentage of the Net Asset Value (NAV). For instance, if NAV is Rs.20 and the specified entry load is 2%, the cost price per unit will be Rs. 20.4.
Liquidity
Refers to the ability of gold to generate liquid cash much quicker than any other investment avenue. Gold is one of the most highly liquid investments that one can make, especially in India.
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.
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.
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.