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

GATA is an organization whose aim is to investigate, expose and oppose collusion in the price of gold and related financial instruments.

The gross domestic product (GDP) is the monetary value of all finished goods and services produced within a country in a specific time period. It is also the most common measure of a nation's overall economic activity or the size of the economy. It is released quarterly by the Bureau of Economic Analysis.

Geographical diversification is the practice of diversifying an investment portfolio across different geographic regions in order to reduce the overall risk and improve returns.

Geopolitics is the study of the influence of such factors as geography, economics, and demographics on policy, particularly on the foreign policy of a state. Geopolitical risk is commonly defined as the risk of one country’s policies or actions influencing or upsetting domestic political, social, or economic policy in another country or region, but its scope is much wider. Geopolitical concerns include military conflicts, civil wars, terrorist attacks, riots, trade barriers, sanctions, etc.

The world's fourth largest economy by nominal GDP, and the fifth largest by purchasing power parity. The third largest exporter of goods in the world and the richest country in Europe. The country famous for automotive industry, great culture and excellent beer. Germany. What are its links to the gold market?

How to analyze the gold market? Oh boy, this is not a piece of cake. There are many factors the analyst should take into account. But the most important thing is to have an appropriate theory of the gold market. As the saying goes, there is nothing more practical than a good theory!

Chemically, gold is an element with the symbol Au and atomic number 79. It belongs to noble metals and is a unique element. First of all, it is extremely rare. In the Earth’s crust, gold occurs 19 times less frequently than silver and 15 thousand times less frequently than copper. It is the only metal being yellow with a high luster, to which it owes its Latin name ‘aurum’, meaning “shining dawn.”

Gold had served as money for thousands of years until 1971 when the gold standard was abandoned for a fiat currency system. Since that time, gold has been used as an investment. Gold is often classified as a commodity. However, it behaves more like a currency. The yellow metal is very weakly correlated with other commodities and is less used in the industry. Unlike national currencies, the yellow metal is not tied to any particular country. Gold is a global monetary asset and its price reflects the global sentiment, however, it is mostly influenced by the U.S. macroeconomic conditions.

The need for safety is one of the most important human needs. The same goes for money – people need to feel that their money is safe. That’s why they look for a way to protect their capital against financial turmoil, and assets that protect this capital are called safe-havens. How does gold function as a safe-haven?

You have probably heard this term many times. You may know someone who you would say is this type of person. Perhaps you are or have been called so, even though you are not. Goldbug – it’s very common term in the financial sector, sometimes used as a belittling pejorative. Rightly so? Not necessarily. You see, the problem is that the term is used to describe several interconnected yet distinct aspects.

The price of gold, as each price, is determined by the market forces of demand and supply. The demand is the amount of a good demanded for purchase at a given price. Therefore, the demand for gold is the amount of a gold demanded for purchase at a given price. Gold demand is often analyzed on an annual basis and divided into jewelry demand, technology demand, central banks demand or investment demand.

The golden cross is a relatively infrequent technical indicator which occurs when an asset’s (gold’s) short-term moving average (like the 50-day moving average) crosses above its long-term moving average (like the 200-day moving average). The golden cross is often associated with important upward price movement and it is considered a bullish signal. The crossover is considered more significant when accompanied by high trading volume. Once it occurs, the long-term moving average is considered a major support level.