Precious Metals

Alternative Investments
Alternative investments refer to financial assets that fall outside the traditional categories of stocks, bonds, and cash. These can include tangible assets like art and real estate, as well as financial instruments like hedge funds and private equity.
Bullion Coins
Bullion coins are coins composed of precious metals such as gold, silver, or platinum. They have intrinsic value as bullion and trade based on their metal content rather than rarity or historic value.
Commodity Money
Commodity money is a type of currency that is valued for the material it is made from, such as gold coins, where the value of the money is typically the value of the commodity itself, rather than the denomination stamped on it.
Debasement
Debasement is the act of deliberately rendering a currency less valuable, not through devaluation but by reducing the precious metal content of the coinage.
Gold Fixing
Gold fixing refers to the daily determination of the price of gold by selected gold specialists and bank officials in London, Paris, and Zurich. The price is fixed at 10:30 A.M. and 3:30 P.M. London time every business day according to prevailing market forces of supply and demand.
Hard Cash
Historically, coin made of precious metal. Nowadays it may refer to any readily available money, whether paper or metal.
Krugerrand
A gold bullion coin minted by the Republic of South Africa containing one troy ounce of gold. The Krugerrand is frequently traded and widely recognized.
London Gold Fixing
London Gold Fixing, also known simply as Gold Fixing, is a procedure by which the price of gold is determined in the London bullion market. It takes place twice daily and is a crucial process for the international gold market.
Mercantilism
Mercantilism is an economic theory and practice dominant in Europe during the 17th and 18th centuries that promoted governmental regulation of a nation's economy for the purpose of augmenting state power at the expense of rival national powers. It advocates that a nation should export more than it imports to accumulate wealth, primarily in the form of precious metals like gold and silver. Under mercantilism, trade surpluses were viewed as critical for increasing the nation's reserves.
Monetary Reserve
Monetary reserve refers to a government’s stockpile of foreign currencies and precious metals used to support its currency. It is also the Federal Reserve Board's requirement for banks to keep a certain proportion of their deposits in cash or near-cash equivalents.
Paper Gold
Paper gold refers to certificates that can be converted into gold at the offices of the issuer, whether private or government. It is often used in exchange due to its convenience over the physical metal.
Precious Metals
Precious metals such as gold, silver, platinum, and palladium are highly valued for their intrinsic value, role in backing world currencies, aesthetic appeal, and industrial applications. Their prices are influenced by supply and demand, political and economic considerations, and global events.
Remonetization
Reinstatement of a commodity or other means of exchange as an acceptable currency, often involving the backing of currency by gold or other precious metals.
Specie
Specie refers to money that holds intrinsic value, typically consisting of precious metals like gold and silver coins, which are used as a medium of exchange.
Troy Weight
Troy weight is a system of measurement used mainly for determining the weight of precious metals and gemstones.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.