Precious metals investment terms A to Z
- Self-similarity
A situation, in which a part of an object (for instance a chart) is similar to other parts of it or (and) to this object as a whole. If an object is self-similar than we may infer that it is a fractal. One of the examples are chart patterns - what a given market (for instance: gold) does in a week may be very similar to what it did over a year, and something that it did over a decade, might be just like what we saw in several hours. Technical formations appear on many different ways and they can be viewed as something that's self-similar. The same formation is likely to be seen in more than one time-frame. More information on the subject of self-similar objects and the possibility to use self-similarity and fractals in the precious metals market analysis is to be found under the term fractal.
Read more- Sovereign Gold Bonds
Many people think that gold and bonds are in eternal competition as asset classes. But they are wrong, as evidenced by the Sovereign Gold Bonds (SGBs). They are government securities denominated in grams of gold. The SGBs were launched by the government of India in November 2015, under the Gold Monetisation Scheme. The authorities wanted to turn physical gold lying ‘idle’ in Indian households into a productive asset and reduce country’s dependability on gold imports.
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