First, you have to learn the lingo. The 2009 book, Investing in Gold, by Jonathan Spall, has a helpful Glossary of Terms following 12 chapters that cover gold mining, refining, lenders and borrowers of gold, bullion banks, gold exchanges, myths and reality, etc.

See if you can define the following, then see the book’s definitions (below):

Terms:
1. Aliquot.
2. At the Money.
3. Backwardation.
4. Bear Market.
5. Bull Market. 6. Bullion.
7. Call option.
8. CIF.
9. European-Style Option.
10. Fineness.
11. FOB.
12. Gold Fixing.
13. Krugerrand.
14. Maple Leaf.
15. Precious Metals.

 Definitions:
1. A small representative sample taken from a precious metals bar for assay to determine its fine precious metals content.

2. Refers to an option strike price that is equal to the current market price of the underlying asset.

3. A market situation when prices for future delivery are lower than the spot price, caused by shortage or tightness of supply.

4. A market in which the trend is for prices to decline.

5. A market in which the trend is for prices to increase.

6. The generic word for gold and silver in bar or ingot form.

7. An option that gives the purchaser the right, but not the obligation, to buy an asset at a predetermined price on or by a set date.

8. Cost, Insurance, and Freight.

9. An option that can only be exercised on the expiry date.

10. The proportion of precious metal in an alloy expressed in parts per 1,000.

11. Free On Board. A FOB price usually includes the cost of transport, insurance, and loading onto a vessel at the port of departure.

12. Held twice each working day at 10:30 a.m. and 3:00 p.m. in the City of London.

13. South African gold coin first issued in 1967 with a fineness of 916.6.

14. Canadian gold coin with a fineness of 999.9 or platinum coin with a fineness of 999.5.

15. Metals of great value being gold, silver, platinum, palladium, and other platinum group metals.