gold investment, silver investment

Precious metals investment terms A to Z

Backwardation

Backwardation is a phenomenon seen in the futures market, which futures traders need to monitor. A forward curve is said to be in backwardation when futures are traded at a discount in comparison with spot. Gold backwardation means that traders could potentially gain capital (versus simply buying gold right away) when holding gold futures until the contract expires.

Read more
Bail-in

We bet that you have heard about bailout (if not, you are welcome to read our take on bailout here). But bailouts are so yesterday - do you know what a bail-in is?

Read more
Bailout

What is the connection between removing water from a sinking vessel using a bucket, paying for someone’s release from jail, and jumping from an airplane with a parachute? Yes, all these activities are referred to by the verb “to bail out”.

Read more
Balance Of Payments

The Balance Of Payments is a government produced financial measure relating to a period of time which accounts in financial terms for the difference between the value of all the country’s imports and its exports. It is an important measure of a country’s relative performance in the global economy.

Read more
Bank of Japan (BoJ)

The Bank of Japan, based in Tokyo, is the central bank of Japan. It ensures the smooth settlement of funds among banks and other financial institutions and issues banknotes. The BOJ also carries out currency and monetary control, which is aimed at achieving price stability (understood as a 2 percent year-on-year rate of change of the consumer price index), thereby contributing to the sound development of the national economy. The BOJ’s highest decision-making body is the Policy Board.

Read more
Bear market

A bear market refers to a decline in prices, usually for an extended period, in a single security or asset, group of securities or the securities market as a whole. Its opposite is a bull market where prices are rising. In case of precious metals, the great gold bear market started in 1980 after the major, long-term top.

Read more
Bearish Divergence

A bearish divergence between the price and a technical indicator is a moderately useful tool for detecting a coming reversal in the bullish trend. Bearish divergence in gold is therefore a moderately bearish signal for the gold market.

Read more
Beige Book

Have you seen the Green Book? It’s a bit naïve, but generally great and funny movie. The film was named after The Negro Motorist Green Book, a mid-20th century guidebook for African-American travelers, which had green cover and was written by Victor Hugo Green.

Read more
Ben Bernanke

Ben Bernanke was born on December the 13th, 1953 in Augusta, Georgia. He received his Ph.D. in economics from MIT in 1979. He worked in academia for many years, but later started his public service. In 2002-2005, he was a member of the Board of Governors of the Fed. In 2005-2006, he was a chairman of President George W. Bush’s Council of Economic Advisers. In February 2006, he became the Fed Chair, after being nominated by President Bush. During his tenure, Bernanke was responsible for the Fed’s response to the 2007-2008 financial crisis and the subsequent Great Recession. He was later nominated by President Obama for a second term from 2010 to 2014 when Janet Yellen succeeded him as the Fed Chair.

Read more
Bid-ask spread

The bid-ask spread is the difference between the price quoted by investors who want to sell a certain stock or asset (ask price) and those who wish to buy it (bid price). The higher the spread the less liquidity in the market for the asset.

Read more
Bitcoin

The currency of the future. The biggest scam in history. The digital gold. The worthless bits of computer data. The great invention and investment. The tool for speculators and criminals. There are as many opinions about Bitcoin and its future as there are people. This explains divergent price expectations and substantial volatility. But what is really Bitcoin and what are its links to gold?

Read more
Black Swan Event

A black swan event is a very surprising and rare event that is beyond the realm of normal expectations. Such an event is very hard to predict, since it is an outlier in the data series and nothing in the past points to the possibility of its occurrence. However, the event has an extreme impact. In other words, a black swan event is an unexpected event of large magnitude – the bankruptcy of Lehman Brothers in 2008 serves as a good example.

Read more
Bond Prices

To live like a super-spy, you will need a lot of money! Aston Martin is not a cheap car, and drinking Vodka Martini also has its price. Of course we are not writing about the price of being a Bond, but about the bond prices. It’s maybe a little less exciting, but it is probably closer and surely more lucrative for you.

Read more
Bond Yields

A bond yield is a return on investment, expressed as a percentage, for a bond. Investors often analyze the Treasury yields, i.e. the returns on the U.S. government’s debt obligations. The price of bonds is negatively related to the yields they offer. Since there is a negative relationship between gold and the interest rates, there should be negative correlation between the price of gold and bond yields and positive correlation between gold price and bond prices. In other words, there may be a positive relationship between gold and bonds due to the opportunity costs and capital flow from bonds to gold, when prices of bonds become too high (yields become too low). There may also be capital flows in the opposite direction (from gold to bonds) when bond yields increase (bond prices decrease) and provide a better alternative than gold.

Read more
Boris Johnson

Boris Johnson – pardon, Alexander Boris de Pfeffel Johnson – became the Prime Minister of the United Kingdom in July 2019, after Theresa May resigned.

Read more
1 2

tops prediction corrections in gold

menu subelement hover background