Three common types of gold investment in the market:

The first: physical trading of gold

As the name suggests, it is a transaction defined by physical delivery The model includes gold bars and gold coins. Investors purchase gold bars at the gold price of the day. After payment, the gold bars belong to the investor and are kept by the investor themselves. After the gold price rises, the investor takes the gold bars and sells them at the designated acquisition center.

Advantages: Gold is a symbol of status. The ancient traditional thinking has given Chinese people a special preference for gold, and it is widely favored by individual gold collectors.

Disadvantages: This investment method is mainly used by large gold merchants or national central banks as their own production raw materials or as the country's foreign exchange reserves. It is more troublesome to trade, and it has the characteristics of "easy to buy, hard to sell".

The second type: paper gold trading

What is paper gold? To put it simply, it is equivalent to an ancient banknote! Investors buy gold at the bank at the gold price of the day, but the bank does not give the investor actual gold, but only gives the investor a contract. When the investor wants to sell, he goes to the bank to exchange the contract for cash.

Advantages: The investment is small, you can start from 0.1 ounces, the transaction is more convenient, and the steps of transportation, storage, inspection, identification and other steps of gold are omitted.

Disadvantages: Paper gold can only be bought up, which means it can only be bought low and sold high. When the price of gold is falling, investors can only wait and see. The investment commission is relatively high and the time is relatively short.

The third type: gold spot margin trading

In layman’s terms, for example, you can own a 10-yuan stone with a 1-yuan margin, and Use, so if you have 10 yuan, you can own 10 ten-dollar stones. If the price of each stone increases by 1 yuan and becomes 11 yuan, you sell them, so that you make a net profit of 10 yuan. . Margin trading uses this leverage principle to put money to good use.

Comparison of futures gold and spot gold, currently the most popular investment.

Spot gold trading is basically a spot transaction, which is delivered after the transaction is completed or within a few days. The main purpose of futures gold trading is hedging, which is a supplement to spot trading. There is no immediate transaction after the transaction is completed. Instead, both parties to the transaction sign a contract first, pay a deposit, and then deliver on the predetermined date. Its main advantage is that it can control a large number of futures with a small amount of capital and pass on the price of the contract in advance, which has a leverage effect.