Introduction to London Gold

No matter how the price of gold changes, due to its high intrinsic value, it has the ability to preserve value, realize cash and resist inflation.

1. Single variety, open and transparent

Compared with the stock market, investors only need to choose a single product for gold trading. As for the stock market, there are thousands of stocks in both domestic and international stock markets. When investing in the stock market, you first face the problem of stock selection. You must choose the right sector, the leading stocks and potential stocks in the sector. Due to information asymmetry, investors mainly listen to the opinions of stock reviews when choosing stocks, and they are highly blind. Investors obviously have to work hard. Because the various factors affecting gold price changes are relatively transparent.

2. It is extremely difficult for bookmakers to appear and there is no price manipulation

Any regional stock market may be artificially manipulated, but this is rarely the case in the gold market. Gold is a global investment market with unified objects and unified prices globally. In reality, no consortium has the power to control the gold market. Therefore, gold investors also receive great investment protection, and transactions are relatively standardized. However, we know that individual stocks and futures types have the participation of large and small market makers. The price trend is easily controlled by the market makers, and ordinary investors are in a passive position.

3. Implement two-way and T+0 transactions

London gold spot trading implements a long-short mechanism. You can buy first and then sell, or you can sell first and then buy. In this way, there are profit opportunities in both rising and falling gold price trends. More importantly, gold trading implements T+0 transactions, and multiple round-trips can be made every day. Compared with the domestic stock market, which implements the T+1 system, it can achieve more profit opportunities and improve the efficiency of capital use.

4. Margin system to enlarge investment ratio

London gold trading implements a margin system. For example: each standard lot of the contract is 100 ounces, and only 1 ounce of gold price margin is required. From the perspective of profitability, for every US$1 fluctuation in the gold price, there will be an opportunity to make a profit of US$100.

5. Investment risk control

The main reason why futures trading is huge is that futures trading has a delivery period. Since futures trading must be delivered upon expiration, for investors, If the price of the futures contract in hand is close to the futures delivery period, the investor must close the position despite being in a loss. However, London gold is a spot transaction and has no delivery period. Investors can hold the position for a long time without being forced to close the position. .

6. No time limit

From a time perspective, global gold markets such as London, New York, and Hong Kong have continuous transactions, forming a 24-hour uninterrupted investment system. However, in the domestic market, whether it is physical gold trading on the Shanghai Gold Exchange or paper gold trading launched by some banks, both are from Monday to Friday, in the morning and afternoon. When emergencies affecting gold prices occur worldwide, Investors cannot follow up on transactions in a timely manner, thereby losing buying or selling opportunities, resulting in losses.