Precious metals investment terms A to Z
- M0 (monetary base)
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.Read more
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 precious metals investors.Read more
Market manipulation, called also price manipulation, can be defined broadly as a purposeful effort to control prices. This sort of manipulation exists in financial markets as traders try to influence the markets. It may be responsible for some short-term aberrations in asset prices, including the price of gold. However, there is another, more specific definition. According to the Security and Exchange Commission, manipulation is intentional conduct designed to deceive investors by controlling or artificially affecting the market for a security… [this includes] rigging quotes, prices or trades to create a false or deceptive picture of the demand for a security. A popular belief within the gold investing community is that gold prices are manipulated, generally downwards, in what is described as price suppression.Read more
- Margin Requirements
Themarket enables investors to 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. Read more
- Medium term
A medium period of time to hold an asset. How long is "medium" depends on individual investor's perspective.Read more
- Money Supply
The money supply is the total amount of money available in an economy at a particular point in time. The quantity of money is probably the most important concept in economic theory, since it affects the price level. The increase in money supply causes price inflation, while the decrease in money supply leads to price deflation.Read more
A type of a loan secured by real estate. A mortgage deal involves at least two sides – the borrower (typically a home buyer) and the lender (usually a financial institution). The lender provides the borrower with financial means necessary to buy a specific property. The borrower agrees to pay interest on the loan and uses the property as collateral. The deal might encompass various intermediaries between the lender and the borrower.Read more
- Moving Average
A moving average (rolling average, rolling mean, running average, MA) is the average of the closing price of a security over a specified period of time. It smoothes short-term price fluctuations, thus giving a clearer picture of the trend. The 50-day and 200-day moving averages are quite often used as support and resistance levels for gold.Read more
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