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

Velocity of Money

Velocity means speed. And indeed, velocity of money refers to how fast money changes hands and how fast it passes from one holder to the next. It is commonly defined as the rate at which money is exchanged from one transaction to another. Simply put, the velocity of money is the number of times one dollar is spent to buy goods and services per unit of time.



Volatility is the relative rate at which the price of a security moves up and down. The more the price moves up and down, the more volatility it is considered to have.



Volume is the overall sum of all transactions executed in the market (or a single company's stock) during a given period of time, which shows us market power (importance). In case of gold futures market, the gold volume represents the amount of contracts that were traded in a given period. The greater the volume, the more powerful the market. Volume plays a significant role in the confirmation of a suggested price movement.