Investment & Economics

Allocated gold refers to physical gold that is individually assigned to an owner, stored separately, and does not appear on the balance sheet of the custodian.

Allocation describes the deliberate distribution of a portfolio across different asset classes – including precious metals – in order to balance risk and return according to the desired objectives.

A bonded warehouse is a government-approved facility in which goods can be stored outside the customs territory of the EU without incurring import duties or import VAT.

Bretton Woods refers to the international monetary system founded in 1944 that pegged the US dollar to gold, named after the conference venue in New Hampshire.

Central bank purchases refer to the acquisition of gold reserves by national central banks to strengthen currency reserves and as a strategic hedge against currency and systemic risks.

The cost-average effect describes the phenomenon whereby regular purchases of an investment asset with a fixed amount automatically result in a more favourable average price than the arithmetic mean of all individual prices.

A crisis currency refers to assets that are considered particularly stable in value during periods of economic or political instability and are therefore in increased demand.

Diversification refers to the spreading of capital across different asset classes, regions or currencies in order to reduce the overall risk of a portfolio.

A US government decree from 1933 that forced private individuals to surrender gold to the Federal Reserve and banned private gold ownership for approximately 40 years.

Gold mine hedging refers to the practice of gold producers selling future output via forward contracts at a fixed price in order to protect themselves against falling gold prices.

A gold savings plan is a regular investment model in which a fixed amount of money is invested in physical gold or gold-based securities at set intervals.

A monetary system in which the value of a currency is fixed to a defined quantity of gold.

Home storage refers to the physical safekeeping of precious metals by the owner themselves — in a home safe, a bank safe deposit box or another self-chosen location.

Inflation protection refers to the ability of an asset to preserve or increase the real purchasing power of invested capital even as the general price level rises.

The intrinsic value (also material value) of a precious metal object is the pure market value of the fine metal it contains, calculated as fine weight multiplied by the current spot price.

Shares in companies that mine precious metals or other commodities, offering leveraged participation in the price performance of the respective metals.

The opportunity cost of gold refers to the foregone return that would arise if the capital tied up in gold were instead invested in interest-bearing or high-yield assets.

With a precious metal savings plan, you regularly purchase gold or silver for a fixed amount — the cost-average effect smooths out price fluctuations over time.

The real interest rate is the nominal interest rate adjusted for inflation, showing the actual change in purchasing power that an investment produces.

Finance companies that provide upfront capital to mines and receive in return the right to purchase a share of future precious metal production at a pre-agreed price or in exchange for a revenue-based fee.

A safe haven is an asset that retains or increases its value during periods of economic or political uncertainty, while other asset classes decline.

Unallocated gold refers to a gold claim against a bank or provider that is not backed by any individually assigned, physically segregated bar or coin.

Wealth protection refers to strategies and instruments aimed at preserving the real value of assets against inflation, currency devaluation, crises, and political risks.