Investing in precious metals like gold and silver can be a powerful strategy for diversifying your portfolio. However, navigating the intricacies of this market requires a firm grasp of its terminology. This comprehensive glossary serves as your essential guide, defining key terms to empower informed decision-making.
Understanding Market Dynamics:
Bear Market: A market characterized by a sustained decline in prices, where investors anticipate further price drops.
Bull Market: A market defined by a continuous rise in prices, where investors expect prices to continue increasing.
Liquidity: The ease with which an asset can be bought or sold in the market without impacting its price significantly.
Margin: A deposit required by a broker to purchase an asset on credit, allowing investors to leverage their buying power.
Options Contracts: Agreements granting the buyer the right, but not the obligation, to buy or sell a specific quantity of a precious metal at a predetermined price by a specific expiry date.
This glossary equips you with a foundational understanding of the precious metals market's language.
