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

Diwali

Light. From a scientific point of view, it is an electromagnetic radiation. But light is also an illumination. Knowledge and learning. Or, sunshine. As an archetypal and intuitive perception, light fascinated people all over the world, including India.

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Dodd-Frank Act

The Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in 2010 for the purpose of reforming the American financial regulatory system. A response to the financial crisis of the late 2000s, it is intended to improve transparency in the financial system, enhance consumer protections, end the phenomenon of "too big to fail" financial institutions, and implement other reforms.

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Dollar Cost Averaging

Method of purchasing assets in which you divide your capital in equal dollar amounts and spread the purchase over time - perhaps over several months. Our studies show that the dollar cost averaging is not advisable for purchasing gold nor silver.

 

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Dot-com Bubble

Do you have a “.com” suffix in your name? If yes, we will invest in you. No matter that you never made any money. You have to gain in value, anyway! This is how people thought during the dot.com bubble. Investors were excited and bought many companies. People started to quit their jobs and engage in full-time day trading. Stock values grew. For example, Webvan.com, an online grocery business, was valued at $1.2 billion at its peak. However, one year and half later, the company bankrupted.

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Dot Plot

Dots. Who would have thought that a few dots could shake the markets? But what dots are we actually talking about? Generally speaking, a dot plot, also called a dot chart, is a kind of chart used in statistics for relatively small data sets where values fall into a number of discrete categories. It represents a distribution of data points plotted on a simple scale where each dot represents a value. In other words, a dot plot is a graphical display of data using dots.

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Dovish Comments

Probably the first birds domesticated by people. War heroes (see: Cher Ami). A Christian symbol of the Holy Spirit. Doves. Glorious animals.

You are probably wondering why we write about birds on a website devoted to precious metals and other investments. The reason is that “dove” is a term used not only in ornithology, but also in monetary policy. It means a policymaker who is predominantly concerned about economic growth. Hence, doves generally favor lower interest rates and easy monetary policy to support economic growth and employment. They constantly fight with the hawks who are rather concerned about inflation and prefer higher interest rates and tight monetary policy to maintain price stability.

In this tug-of-war, the Fed sometimes adopts a more hawkish or a more dovish tone. The former signals a more aggressive stance towards monetary tightening, while the latter indicates a preference towards easy monetary conditions to combat unemployment, even at the expense of rising inflation.

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Dow Jones

What do the Dow Jones and my ex have in common? They are both doing really well and all my friends are in them except me…

The Dow Jones Industrial Average (also known as the DJIA, the Dow Jones, or simply the Dow) is a stock index of 30 large and well-known publicly-owned companies traded on the New York Stock Exchange or the Nasdaq (such as Apple, Coca-Cola, JPMorgan Chase, Microsoft, Wal-Mart, or Walt Disney). The index was created by Charles Dow in 1896, which makes it one of the oldest stock indexes in the world. It also remains one of the most closely monitored and regularly cited stock indexes as a measure of stock market performance, especially by the general public. However, it does not take into account the market capitalization of each stock, and it includes only 30 companies – which is why some analysts consider the S&P 500 a better representation of the overall market performance.

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Dow Theory

Dow Theory is a general theory that attempts to describe the behavior of the stock market: the way that price trends develop and the reasons behind it. It also gives some ideas on how to determine whether a particular move should be seen as a continuation of the current trend or rather a sign of a trend reversal.

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