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

The monetary base is the most liquid type of money circulating in the economy. The monetary base consists of physical money (coins, notes) and of the commercial banks' deposits with the central bank. The most important characteristic of the monetary base is that, under typical conditions, it can be converted into goods or services (or other currencies) almost immediately. In most cases, the supply of monetary base is controlled by the central bank that can expand it, for example by issuing more paper money.

MACD (Moving Average Convergence/Divergence) is a technical analysis indicator based on the discrepancies between moving averages calculated for different periods. Through the use of these moving averages, the MACD generates buy and sell signals.Because of its relatively easy-to-interpret signals, the MACD has become a popular tool among gold and silver investors.

Gold market manipulation, also called gold price manipulation, can be defined broadly as a purposeful effort to control gold prices. Many gold investors believe that the gold market is systematically manipulated – but is it really? What evidence is there for such a belief?

Margin is the amount of funds deposited with a broker for that broker to extend credit for the purchase of securities. In other words, an investor or trader deposits this amount of money with their broker and the broker allows the investor/trader to open positions in the amount larger than the amount of the deposited funds. The difference is loaned by the broker and the broker charges interest on the loaned amount. Buying securities with the use of borrowed money is often referred to as “buying on margin.” Buying on margin might be risky and should only be done by investors/traders who are confident they know what they are doing.

The gold futures market enables investors to leverage their positions using futures. In the futures exchange, investors do not have to post the total value of the contract as collateral in their accounts. Instead, a margin is required, which is only a small part of the value of the contract.

Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.

A medium period of time to hold an asset. How long is "medium" depends on individual investor's perspective.

Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in the output.

“There ain’t no such thing as a free lunch”. As you probably know, Milton Friedman helped to popularize that phrase. But he was wrong. This article about Friedman and gold is completely free for you. So who was the one of the most influential economists of the second half of the 20th century whose direct and indirect influences on contemporary monetary economics would be, according to Ben Bernanke, difficult to overstate?

Picking the right mining stocks is not an easy task. So why not invest in the mining stock index? Straight away one question arises: which index? There are three main mining stock indices: the NYSE Arca Gold BUGS Index (HUI), the Philadelphia Gold and Silver Index (XAU), and the VanEck Vectors Gold Miners ETF (GDX). Which is the best?

There are many ways to gain exposure to movements in the commodities, including precious metals. One of them is mining stocks, i.e. shares in mining companies.Mining stocks can be divided into two broad categories: seniors and juniors. The former are stocks of a considerably large commodity producing mining companies with an established position and relatively large market capitalization, while the latter are stocks of smaller mining companies with little capital and short history. For these reasons, juniors are more risky than seniors.

The Great Recession has shaken the world. It not only sent the global economy to the verge of collapse, but also sank the whole science of economics into disarray. The orthodox approach was questioned and alternative theories emerged. One of them is the Modern Monetary Theory (MMT) which is gaining traction with some economists and politicians, especially within the left wing of the Democratic Party. What is it and what would it bring for the economy and the gold market, if implemented?

Monetary policy is an economic policy which aims to achieve macroeconomic goals such as low inflation, low unemployment, high economic growth and financial stability. The second major macroeconomic policy is fiscal policy conducted by governments. Monetary policy is usually conducted by independent central banks.