10 Terms to know before you start your gold investment journey

10 Terms to know before you start your gold investment journey

Presenting an essential glossary of terms to help new investors navigate the world of Gold-based investments.





February 25, 2022 / 07:46 PM IST





With record inflows last year, gold has emerged as a strategic investment of choice for investors looking to hedge against stock market volatility. Tech-enabled innovations and a variety of gold-based investment options are also making gold a more accessible and hassle-free asset for millennial and young investors. Many are now investing in gold for the first time, and reaping the rewards with more stable returns and added flexibility.

But before one can begin investing gold-based assets, here are 10 important terms one must be aware of.

Bullion

Bullion is the general term denoting gold and silver of at least 99.5% purity, which have been transformed into bars or minted into coins for investment purposes.

Karat

Karat is a measure of the purity of gold, which is defined as the proportion of fine metal per 24 whole parts. Therefore, 24 Karat represents 100% pure gold.

Intrinsic Value

Intrinsic value refers to the true value of metal contained in a physical denomination, like gold coins or bars.

Gold ETFs

Gold ETFs are tradeable units, equal to the price of 1 gram of 24K