What is spot gold? Spot gold is an international investment product. Each gold company establishes a trading platform and conducts online trading transactions with market makers in the form of leverage ratios to form an investment and wealth management project. .
1. Security: The value of gold is inherent and intrinsic to itself, and it has eternal stability for thousands of years. As a precious metal, gold is recognized around the world as the best value-preserving product.
2. Liquidity: Since the gold market is a global 24-hour trading market, it can be traded into banknotes at any time. Gold is a financial asset closely related to currency, has a world price, and is also It can be exchanged for currencies of other countries based on exchange rates.
3. Reverse nature: The value of gold is inherent in itself. When banknotes fluctuate and depreciate due to a credit crisis, gold will automatically adjust upward according to the currency depreciation rate. When paper money appreciates, the price of gold remains constant. This reversal becomes a means for people to avoid investment risks, and it is also another major value of gold investment.
4. Rarity: The current gold stock on the earth is about 137,400 tons. The gold stock on the ground is increasing at a rate of 2%. The annual supply of gold is about 4,200 tons. Currently, due to the rapid development of global industry and jewelry industry , the demand for gold has skyrocketed.
5. Investment: Since the long-term trend of gold is stable, and the spot gold market cannot be manipulated artificially, and the risk is small, gold is a very suitable medium- and long-term investment product, unlike some speculative products. financial products.
The world's major gold market
1. London Gold Market
The London gold market has a long history and is also the world's major spot market. It is composed of 5 major gold trading companies. composition. Before World War II, London was the world's largest gold market. The number of gold transactions was huge, accounting for about 80% of the world's business volume. It was the only market in the world where you could buy gold in tons.
2. Zurich Gold Market
The Zurich Gold Market is a global free gold market developed after World War II. It is centered on the three major Swiss banks and jointly operates gold. Unlike London gold merchants, they not only act as brokers, but also hold large gold reserves for gold trading.
3. New York Gold Market
The New York Gold Market is currently the largest gold futures market in the world. Two-thirds of gold futures contracts are traded in New York every year, but the transactions are highly watery and speculation floods the entire market. The New York gold market has a short history, but it is developing quite rapidly. The daily trading volume reaches 30,000-40,000 transactions, with a transaction volume of approximately 70 tons of gold. In 1980, the trading volume of the New York gold market reached 800 million ounces, approximately 25,000 tons of gold, while the world's gold supply was only 1,700 tons per year.
4. Hong Kong Gold Market
The Hong Kong gold market consists of the Hong Kong gold and silver trading market, the Hong Kong London gold market, and the Hong Kong gold futures market. In 1974, the Hong Kong government lifted controls on the import and export of gold. Since then, the Hong Kong gold market has developed rapidly. Since the Hong Kong gold market just fills the gap between the closing of the New York and Chicago markets and the opening of the London market due to the time difference, it can connect Asia, Europe and the United States to form a complete world gold market. Its superior geographical conditions have attracted the attention of European gold merchants. The five major gold merchants in London and the three major Swiss banks have come to Hong Kong to set up branches. They brought gold trading activities settled in London to Hong Kong, gradually forming an invisible local "London gold market", making Hong Kong one of the world's major gold markets.