There are several kinds of investment and financial management: first, physical objects, including gold coins, jewelry and so on.
The craze for physical gold is more about preservation than investment.
So that’s the first one, and then there’s the relatively large investment in physical gold.
Paper gold Paper gold is a kind of personal certificate gold, investors buy and sell “virtual” gold on the book according to the bank’s quotation, individuals by grasping the trend of low absorption and high selling, earn the fluctuation difference.
Investors’ trading records are only reflected in the “gold passbook account” opened in advance by individuals, and no physical gold withdrawal or delivery takes place.
Its characteristics and physical gold similar, profit is not high.
Gold Shanghai Gold refers to a standardized contract formulated uniformly for delivery of a specified quantity of the subject matter at a specified time and place in the future.
The subject matter, also known as the underlying asset, is the spot corresponding to the gold and silver T + D contracts.
The same as stocks, the use of matching trading mechanism, large margin, higher threshold.
The biggest problem is the timing of trading and the international disk gap, and risk control is not perfect.
4. Spot London gold, also known as London gold, is a spot transaction, which is delivered after the transaction is concluded or within a few days.
Also commonly known as spot gold is the world’s largest stock.
Physical gold is heavily traded every day, some $20 trillion a day.
Therefore, no consortium or institution can artificially manipulate such a huge market, completely depend on the spontaneous regulation of the market.
Spot gold market without dealer, market norms, strong self-discipline, sound laws and regulations.
Adopt market maker trading mechanism, 24-hour T+O two-way trading, margin ratio up to 100 times, relatively small investment.