1, different definitions
Paper gold is a kind of personal voucher gold. Investors buy and sell virtual gold on the books according to the bank quotation. Individuals earn the fluctuating price difference of gold by grasping the trend of international gold price. Investors' transaction records are only reflected in the gold passbook accounts opened by individuals in advance, and no real gold withdrawal and delivery occurs.
Spot gold is a spot transaction, that is, after the transaction is completed or delivered within a few days. Spot gold is an international investment product, which is an investment and financial management project formed by gold companies establishing trading platforms and conducting online transactions with market traders in the form of leverage ratio.
It is often called spot gold and is the largest stock in the world. Because the daily trading volume of spot gold is huge, the daily trading volume is about 20 trillion US dollars. Therefore, no consortium or institution can manipulate such a huge market artificially, relying entirely on the spontaneous adjustment of the market. There is no banker in the spot gold market, and the market is standardized, self-disciplined and sound.
2. Different characteristics
Paper gold is generally a variety introduced by banks. Convert your deposit into a certain gram of gold according to the current market price and save it. Gold has gone up, making money, falling and losing money. The leverage ratio is 1: 1. There is no real thing in hand, only the price is traded, and the trading time is limited.
Spot gold is more and more loved by investors because of its superior system and high income. Its main advantage is that the leverage ratio is 1: 100, and small funds are used to control large transactions and save funds. Trading is not limited by time, and trading is 24 hours a day from Monday to Friday. T+0 form, trading, trading at any time.
3. Different investment risks
Paper gold is suitable for the long term. If you use Loco London gold as a long-term investment, it is very risky, because the capital is enlarged and the risk is increased, and you may be forced to close your position at any time. Paper gold has a long investment cycle, and there is not much room for gold price to rise in the short term, so investors need a long time to invest. Paper gold has no risk, only a little ups and downs, and it doesn't earn much.
Spot gold is risky because the capital is enlarged by 100 times. If you don't control your position well, you may wake up and find that the money is gone, or it may have doubled.