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These Terms in Gold You Need to Know

Want to invest in gold? Or are you planning to invest in gold? Investing in gold is indeed widely chosen, especially by women because of its price stability.

Gold is often referred to as a safe haven or an asset that is expected to be stable in value no matter how volatile and world situations are.

Maybe there are those who are still hesitant to invest in gold because they don't understand some of the terms in gold? Here are terms that are commonly heard when talking about gold:

1. Carat

The purity level of gold jewelry is usually stated in carats. Because generally gold jewelry is made from a mixture of gold, silver, brass or other types of metal to obtain the appearance of the desired color and strength. Pure gold itself has a purity level of 24k. Another example is if you have 22k gold, then the gold content is 22/24 x 99.99% = 91.66% and the remaining 8.34 percent is other types of metal.

2. Purity 99.99%

In contrast to gold jewelry, the level of purity in gold bullion is stated in percent. Currently the highest purity in gold bullion is 99.99 percent (not 100%). And along with technological developments, the ability to obtain gold purity is increasing, for example to 99.999 percent.

3. Buy Back

We often hear the term buy back, but what does it mean? Buy back means resale of gold owned. Gold owned can be sold to friends, gold shops or directly to the producer. The buy back price generally refers to the updated spot gold price without taking into account the printing costs.

4. Price Spreads

The price spread is the difference between the purchase price and the resale or buy back price. When buying gold jewelry or bars, a printing or manufacturing fee will be charged, but when resold, this print price will not be calculated. Therefore, in the short term gold has not been able to provide optimal returns because the price difference is relatively significant, especially for gold jewelry.

5. Anti-inflation

Anti-inflation means immune to inflation. The price of gold is relatively stable and even increased throughout the year. In contrast to the value of money which tends to fall. Especially if there is global uncertainty that has an impact on supply disruptions and rising prices of goods. That's why gold is called anti-inflation. Other terms that you may have heard of are gold as a safe haven - which has been mentioned above - and a hedge, the definition of which is more or less protecting our wealth from declining purchasing power, economic crises and global uncertainty.


LBMA or London Bullion Market Association is a global gold trade association consisting of traders, refineries or refiners, gold producers, mines and gold depositors. Refinery listed on the Good Delivery List has a guarantee that the gold can be accepted globally. The only refinery in Indonesia that is included in the LBMA Good Delivery List is PT ANTAM (UBPP Logam Mulia).

If you want to invest in gold bullion, be sure to buy from a trusted manufacturer. This will make it easier when you want to resell and have a competitive selling price.

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