Below you will find a list of the most common terms and the definitions of the terms you must know if investing in any precious metals today.
Gold IRA – A self-directed individual retirement account that allows investors to hold physical gold bullion or other precious metals in their IRA.
IRA Custodian – A financial institution that acts as a trustee or custodian for an individual retirement account, such as a Gold IRA.
Precious Metals – A class of metals that are rare and valuable, including gold, silver, platinum, and palladium.
Gold Bullion – Gold bars or coins that are typically used for investment purposes.
Gold Coins – Coins made from gold that are typically issued by government mints and are used for investment or collectible purposes.
Gold Price – The price per ounce of gold on the open market.
Portfolio Diversification – The practice of spreading investments across different asset classes to reduce risk.
Self-Directed IRA – An individual retirement account that allows investors to direct their own investments.
Inflation Hedge – An investment that is expected to retain its value during times of inflation.
Tax-Deferred Growth – The ability of investments in a Gold IRA to grow without being subject to taxes until withdrawn.
Physical Gold – Gold bullion or coins that are held in hand or stored in a secure location, as opposed to owning shares in a gold exchange-traded fund (ETF).
Gold ETF – An exchange-traded fund that invests in gold and is traded on a stock exchange.
Gold Storage – A secure location where gold is stored to protect it from theft, damage, or loss.
Investment Advisor – A financial professional who provides advice and guidance to clients regarding investment options.
Bullion Dealer – A company or individual who buys and sells gold bullion or coins.
Metal Fineness – A measure of the purity of gold, typically expressed as a percentage or a decimal.
Gold IRA Rollover – The process of transferring funds from an existing retirement account into a Gold IRA.
Gold Mining Stocks – Stocks of companies that mine gold and other precious metals.
Gold Futures – Contracts to buy or sell gold at a predetermined price on a future date.
Counterparty Risk – The risk that the other party in a financial transaction will not fulfill their obligations.
Market Volatility – The degree of variation in the price of an asset over time.
Physical Delivery – The process of taking physical possession of gold bullion or coins.
Numismatic Coins – Collectible coins that have value beyond their metal content due to rarity or historical significance.
Portfolio Rebalancing – The process of adjusting the allocation of investments in a portfolio to maintain a desired level of risk.
IRA Contribution Limits – The maximum amount that an individual can contribute to an IRA each year, as set by the IRS.