{"id":139,"date":"2014-05-12T16:22:33","date_gmt":"2014-05-12T16:22:33","guid":{"rendered":"https:\/\/buygold.ae\/?page_id=139"},"modified":"2017-04-28T12:18:58","modified_gmt":"2017-04-28T12:18:58","slug":"metals-investing-glossary-e-to-h","status":"publish","type":"page","link":"https:\/\/buygold.ae\/uae-gold-dealers\/metals-investing-glossary-e-to-h\/","title":{"rendered":"Metals Investing Glossary E-H"},"content":{"rendered":"

Glossary Sections:   A-D<\/a>  |  E-H  |  I-N<\/a>  |  O-R<\/a>  |  S-Z<\/a><\/h3>\n
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E<\/h2>\n

EFP<\/h4>\n

Exchange for Physical<\/strong> – a mechanism allowing investors to open or close futures contracts through the physical market when the associated futures market is closed<\/strong>. A dealer will deal in the over-the-counter market, replacing<\/strong> the position with a futures market position on the opening of the exchange.<\/p>\n

European Option<\/h4>\n

An option that can only<\/strong> be exercised on the date of expiry<\/strong>.<\/p>\n

Exchange Options (1)<\/h4>\n

An option offered by an exchange, that is a standard contract<\/strong> and subject to the rules and regulations of the governing exchange.<\/p>\n

Exchange Options (2)<\/h4>\n

An “exotic” option which allows the holder to exchange one underlying asset for another<\/strong>.<\/p>\n

Executive Order 6102<\/h4>\n

Franklin D. Roosevelt’s now infamous Executive Order 6102 – Requiring Gold Coin, Gold Bullion and Gold Certificates to Be Delivered to the Government.<\/p>\n

Exercising an Option<\/h4>\n

Where an option purchaser holds<\/strong> the writer\/seller of an option to the agreed contract<\/strong>.<\/p>\n

Exotic Options<\/h4>\n

A term referring to a more sophisticated option strategy with additional features<\/strong> over basic contracts.<\/p>\n

Expiry Date<\/h4>\n

The date on which a derivative product expires or ceases to exist. Exchange products have set expiry dates<\/strong>, whilst OTC expiry dates are variable<\/strong> and agreed between the principals.
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F<\/h2>\n

Face value<\/h4>\n

The legal monetary value<\/strong> stamped on a coin – also known as the symbolic face value.<\/p>\n

Fiat Money<\/h4>\n

Money with no intrinsic value<\/strong>, declared by a government to be legal tender. The term derives from the Latin fiat (“let it become”, “let it be done”, “it shall be”). <\/p>\n

Field<\/h4>\n

The open area<\/strong> or background<\/strong> area in a coin’s design.<\/p>\n

Fineness<\/h4>\n

The purity<\/strong> of a precious metal as measured in 1,000 parts<\/strong> of the alloy. For example a gold bar of .995 fineness will contain 995 parts gold and 5 parts of another metal or metals.<\/p>\n

Fine Ounce<\/h4>\n

A troy ounce<\/strong> of 99.5% pure<\/strong> (.995 fineness) gold<\/p>\n

Fine Weight<\/h4>\n

The weight of a coin, ingot, or bar’s precious metal content, ie the item’s gross weight minus the weight of any alloying metals.<\/p>\n

Fix<\/h4>\n

The London gold fixing<\/strong> takes place twice daily and sets a price<\/strong> at which all known orders to buy and sell gold on a spot basis (at the time of the fix) can be settled. The fix is used as a benchmark for spot transactions<\/strong>. <\/p>\n

Forward Transaction<\/h4>\n

A purchase or sale for delivery and payment at an agreed date in the future<\/strong>. Much like a futures contract, with the major exception being forward transactions are not subject<\/strong> to the same standard procedures and regulations of a commodities futures exchange.<\/p>\n

Futures Contract<\/h4>\n

An agreement made within an organized exchange taking or making delivery of a specific commodity or instrument at a set future date<\/strong>.
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G<\/h2>\n

Gold Eagles<\/h4>\n

US minted gold bullion coins<\/strong> available in 1\/10 oz, 1\/4 oz, 1\/2 oz, and 1 oz denominations with a $5, $10, $25 and $50 face value. Each of the four sizes has a fineness of .9167, containing 91.67% gold<\/strong> (or 22 karat). The remaining metals are 3% silver, and 5.33% copper. Eagles are also available in silver and platinum.<\/p>\n

Gold-backed Bonds<\/h4>\n

Debt<\/strong> raised through capital markets and issued with a gold option alternative<\/strong> as a means to enhance the value\/attraction of the investment.<\/p>\n

Gold Bug<\/h4>\n

A sometimes fanatical gold investor<\/strong>, frequently bullish on gold contrary to market sentiment. Gold Bugs tend to support a return to a gold-backed monetary system (a gold standard) away from the existing Fiat system.<\/p>\n

Gold Fix (London)<\/h4>\n

A twice-daily setting of the price of gold<\/strong> by five members of The London Gold Market Fixing Ltd, which takes place on the premises of N M Rothschild & Sons. The Gold Fix is officially a price for settling contracts between members of the London bullion market<\/strong>, but it is also used for setting prices of gold bullion and gold-related contracts and products across the world.<\/p>\n

Gold Loan<\/h4>\n

A financing mechanism in which gold is borrowed<\/strong> from a bullion bank and sold into the market to raise cash<\/strong>. This cash normally finances a gold mining operation, with the metal being repaid over an agreed period of time. Interest payable on the loan is paid either in dollars or gold depending on counter-party agreement.<\/p>\n

Gold Standard<\/h4>\n

A monetary system based on the convertibility of paper money<\/strong> and base coinage into gold<\/strong>. As of 2013 no country uses a gold standard as the basis of its monetary system, with all national currencies now being fiat.<\/p>\n

Good Delivery Bars<\/h4>\n

May also be referred to as large bars<\/strong>, good delivery bars are ingots that conform to London Good Delivery standard<\/strong>. Basic specifications include: a minimum fineness of 995.0 parts per thousand fine gold, bars should carry marks showing serial number, refiner’s hallmark, fineness and year of manufacture; and gold content will be in the 350\u2013430 troy ounces range (11\u201313 kg)<\/p>\n

Grading Service<\/h4>\n

Numismatic coins are graded for quality<\/strong>, with PCGS and NGC being the two major grading services in the United States. Coins are graded using letters and numbers to reflect overall quality, the worst being BS-1<\/strong> (or Basal State 1) and the best MS-70<\/strong> (Mint State 70). Graded coins are usually encapsulated in protective plastic, with a certificate, a procedure known as slabbing. <\/p>\n

Grain<\/h4>\n

The earliest known weight unit for gold<\/strong>. Since the international yard and pound agreement of 1 July 1959, the grain or troy grain measure has been precisely defined in the International System of Units as being 64.79891 milligrams. One troy ounce contains 480 grains.<\/p>\n

Gram<\/h4>\n

A basic unit of weight<\/strong> of the metric system. 31.1035 grams are equal to one troy ounce. One gram is 0.0353 oz. There are 1000g in a kilogram (kg) and 1000kg in a metric ton.
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H<\/h2>\n

Hallmark<\/h4>\n

Hallmarks are a guarantee of certain purity or fineness of a precious metal<\/strong> as determined by formal metal (assay) testing. Marks or stamps on precious metals identifying the producer are often called hallmarks, but are actually Trademarks, Maker’s Marks or Responsibility Marks.<\/p>\n

Hedge<\/h4>\n

A transaction with intent of protecting<\/strong> any existing or anticipated market exposure from unexpected and adverse price movements<\/strong>.<\/p>\n

History-dependent Options<\/h4>\n

Options where the outcome at expiry<\/strong> depends on the price performance of the underlying throughout the whole life of the option<\/strong>. <\/p>\n

History-independent Options<\/h4>\n

Options where the outcome at expiry<\/strong> is based solely on the price of the underlying at the expiration date<\/strong>. Standard European and American options are history-independent options.
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Glossary Sections:   A-D  |  E-H  |  I-N  |  O-R  |  S-Z   E EFP Exchange for Physical – a mechanism allowing investors to open or close futures contracts through the physical market when the associated futures market is closed. A dealer will deal in the over-the-counter<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"open","template":"page-PageTemplate2.php","meta":{"footnotes":""},"class_list":["post-139","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/buygold.ae\/uae-gold-dealers\/wp-json\/wp\/v2\/pages\/139"}],"collection":[{"href":"https:\/\/buygold.ae\/uae-gold-dealers\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/buygold.ae\/uae-gold-dealers\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/buygold.ae\/uae-gold-dealers\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buygold.ae\/uae-gold-dealers\/wp-json\/wp\/v2\/comments?post=139"}],"version-history":[{"count":3,"href":"https:\/\/buygold.ae\/uae-gold-dealers\/wp-json\/wp\/v2\/pages\/139\/revisions"}],"predecessor-version":[{"id":16700,"href":"https:\/\/buygold.ae\/uae-gold-dealers\/wp-json\/wp\/v2\/pages\/139\/revisions\/16700"}],"wp:attachment":[{"href":"https:\/\/buygold.ae\/uae-gold-dealers\/wp-json\/wp\/v2\/media?parent=139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}