How to operate gold trading? There are many financial extension commodities, which is the most valuable for gold! Petty bourgeoisie must know the small steps of gold trading and investment, this article introduces you once.

 

Buy coins

In addition to gold bars, investors looking to invest directly in physical gold and silver can also buy coins. Many countries/regions use gold and silver to mint coins, and there are many private markets and institutions that support this form of investment.

 

Trading precious metals

Since many transactions are conducted in private markets that do not report transaction information, it is difficult to accurately assess the amount of precious metals traded in these markets.

 

Data from the London market shows that, on average, more than 19 million ounces of gold and 170 million ounces of silver are transferred every day, and the transaction volume may be a multiple of this number. The trading volume of the Shanghai Gold Exchange shows that the average daily trading volume exceeds 6 million ounces of gold and 140 million ounces of silver. Stock transactions in the largest gold exchange-traded funds can be equivalent to approximately one million ounces of gold per day. Obviously, the amount of precious metals traded on the global market is many times the amount generated by mining and recycling activities.

 

In the mid-twentieth century, as part of the Bretton Woods system, the U.S. dollar was converted into gold at an official fixed exchange rate of 35 U.S. dollars per ounce. This convertibility ended in 1971, and the price of gold was subject to supply and demand. As a result, the need for risk management tools has developed. Following the changes in US law that previously prohibited the private ownership of gold, COMEX launched a gold futures contract in 1974. COMEX silver futures contracts have been available since 1933. Platinum futures were launched on NYMEX in 1956, while palladium futures were launched in 1956. In 1968. Precious metal futures can also be used on many other exchanges, especially in Asia, such as the Shanghai Futures Exchange and Tokyo Commodity Exchange.

 

Futures contracts provide a mechanism for managing underlying market risks. In the precious metals market, futures contracts provided by COMEX, NYMEX and other companies are part of the broader global precious metals market. They provide transparency and price discovery to the market. The exchange also provides options contracts for precious metals and precious metal futures. Option contracts increase the range of trading and hedging strategies that investors can use.

 

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