A bond is a debt security, similar to an IOU. When you purchase a bond, you are lending money to a government, municipality, corporation, federal agency or other entity known as an issuer. In return for that money, the issuer provides you with a bond which promises to pay a specified rate of interest during the life of the bond and to repay the face value of the bond (the principal) when it matures.
By the f-ing all-time high. This is what people say ironically when markets keep going up and up.
By the f-ing dip. This is what people say when the price of something (usually gold or silver) drops because, of course, a dip in price is the best time to buy.
Commodity Futures Trading Commission. A US bureaucracy which supposedly ensures the integrity of futures and options markets.
the primary market for trading metals such as gold, silver, copper and aluminum. Formerly known as the Commodity Exchange Inc., the COMEX merged with the New York Mercantile exchange in 1994 and became the division responsible for metals trading.
Consumer price index. Measures changes in the price level of consumer goods and services purchased by households. See also: PCE.
a stock or share in a company.
a table that displays the details of the futures contracts being offered for trading for an underlying asset, such as gold or silver.
The rational and unbiased estimate of the potential market price of a good, service, or asset.
Paper currency that is backed by nothing. Money by decree of government. Fiat money is only money because the government says it is money. The US dollar, for example, is a fiat currency; it is not backed by anything. Many good economists make a distinction between currency and money: currency is paper fiat, whereas money is gold and silver.
Someone who is bullish on gold. Gold bugs believe that gold is a stable store of wealth that provides insurance in the event of a currency devaluation. Many gold bugs believe that the price of gold will continue to rise in the future.
Bad money drives out good. When a government overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation.
Local coin shop.
Buying on margin refers to the initial or down payment made to a broker for the asset being purchased.
A medium of exchange; a unit of account; a store of value. Money should be durable and easily divisible. Gold and silver are money.
Mainstream media. The largest, most popular news outlets in all formats of TV, Newspapers, Internet, etc. Examples of MSM include: ABC, NBC, CBS, MSNBC, CNN, Bloomberg, New York Times, Associated Press, Reuters, USA Today etc.
Neoconservative. A neocon is usually a Republican who is not conservative in any way, except for possibly being socially conservative. In contrast, a true conservative is someone who wants small government.
Numismatic coins are collector coins that have added value of beauty, age and other characteristics, in addition to the value of the metal they contain.
London Interbank Offered Rate. The average interest rate that banks in London would be charged if borrowing from other banks.
Precious metal. Gold, silver, platinum etc.
The “core” PCE price index. Personal consumption expenditures (PCE) prices excluding food and energy prices. See also: CPI
The additional percentage you pay above the spot price when purchasing precious metals.
Quantitative Easing (QE)
QE is when central banks, like the Federal Reserve, buy financial assets from commercial banks. Quantitative easing causes monetary inflation.
The spot price is the price at which a commodity can be purchased right now. The spot price of gold refers to the price of one ounce of gold and the spot price of silver refers to the price of one ounce of silver.
The ticker symbol for the Chicago Board Options Exchange Market Volatility Index, which measures the implied volatility of S&P 500 index options. Often referred to as the fear index or the fear gauge, it represents one measure of the market’s expectation of stock market volatility over the next 30 day period.
The amount of stocks traded during a given period. If a large amount of stacks are traded, it’s called “high volume.”
Zero interest-rate policy. A condition where a central bank lends money to other banks at very low (almost 0%) interest rates. This means banks can borrow money for almost nothing.