Explanations of "Gold" investment-related terms A to Z

With Britain leaving the EU how much space was created? Exactly 1GB.

On 23 June 2016, Britons voted in a nationwide referendum to leave the European Union. This decision, called a Brexit vote, led to short financial shock with a plunging pound and equities. However, the markets soon recovered, and the shock was not as bad as many had feared. Similarly, there was a knee-jerk reaction in gold, which boosted its price up to the $1,350 level immediately after the votes results were announced. As the chart below shows, the gold prices spiked in the U.S. dollar, in the Euro, and in the British pound.

One of the HM Treasury’s worst financial mistakes ever made, and perhaps one of the least well-timed investment decisions in the history of mankind (we would say that the worst, but it’s really difficult to beat the government-owned German bank KfW Bankengruppe which sent $426 million to Lehman Brothers the day it went bankrupt).

Have you just bought land to build a house on it? That’s great, you will need financing, the workers, the plans of construction and many other things. But first of all, you will have to apply for a building permit before you can start to build. Whatever your opinion – rigmarole or safety first – you’ll have to do that...

Bullion is the general name for pure gold or silver (at least 99.5%) which have been transformed into bars or minted into coins for investment purposes.

A bullish divergence between the price and a technical indicator is a moderately useful tool for detecting a coming reversal in the bearish trend. Bullish divergence in gold is therefore a moderately useful buy signal for the gold market.

A bull market is characterized by optimism, investor confidence and expectations that prices will tend to go up. During a bull market in stocks prices are expected to rise even after severe declines. In the precious metals market, however, the situation is quite different. Bear markets can last for a long time and there is no confidence that serious slumps will be followed by periods of recovery. In case of precious metals, the secular gold bull market started in 1999. Some say that it ended in 2011, but this doesn't seem to be the case in our opinion as the fundamental drivers remain in place and the key Fibonacci retracement (61.8%) wasn't broken.

In commodity space, buoyant market is generally coined with a market where prices rise with ease when there are sufficient signals of strength

The business cycle is the regular occurrence of booms and busts. The economy does not grow evenly and continuously. Instead, there are periodic upward and downward movements of general business activity. There are expansions and contractions.Technically speaking, the business cycle is often defined as cyclical ups and downs of Gross Domestic Product (GDP) around its long-term growth trend. There are many theories why the economy develops cyclically, one of them is the Austrian business cycle theory. The gold - business cycle's link is one of the more important fundamental issues that one needs to analyze when taking long-term investment decisions.

The phrase „calling the bottom“ is another way of saying that a bottom is in (according to the one calling it) and that higher prices will be seen going forward. For instance, calling the bottom in gold, means saying that the bottom in gold is in.

The phrase „calling the top“ is another way of saying that a top is in (according to the one calling it) and that lower prices will be seen going forward. For instance, calling the top in gold means saying that the top in gold is in.

A derivative that provides you with leverage during rallies, while limiting your risk. Gold call options, for example, can magnify gains on the long position in gold. The catch is that you have to be right on time.

For traders, carry trade can yield profits even if the prices do not move for a period of time, but rather stay the same.