Gold standard. Standard gold is the abbreviation of standard gold. It is a trading standard required by the gold market to standardize on-site trading activities, internationalize pricing and settlement, and standardize clearing and settlement. It must be in the specified shape, specification, fineness, and weight. Bar gold refined and processed into other elements.
Gold coins. Gold coin is the abbreviation of gold coin, which can be divided into broad and narrow sense. In a broad sense, gold coins generally refer to all gold castings used exclusively for currency in commodity circulation, such as gold ingots, gold ingots, etc. In a narrow sense, gold coins refer to gold as the base material of currency that has been certified by the state and has the specified fineness and weight. , a gold coin cast into a certain specification and shape and marked with its monetary face value.
Gold jewelry. Gold jewelry can also be divided into broad and narrow senses. In a broad sense, gold jewelry refers to any decoration that contains gold, regardless of the fineness of the gold, such as gold cups, medals and other souvenirs or handicrafts, which can be included in the category of gold jewelry. Gold jewelry in a narrow sense refers specifically to decorations made from gold materials with a fineness of not less than 58.
Gold account. Gold account refers to a gold investment method provided by commercial banks for investors.
Paper gold. Paper gold is also called gold certificate. That is, the subject matter of the transaction between buyers and sellers in the gold market is a certificate of gold ownership rather than the physical gold. It is a warrant trading method.
Gold stocks. Gold stocks, also known as gold mining company stocks, refer to listed or unlisted stocks issued publicly by gold mining companies to the public.
Gold Fund. Gold funds are a type of mutual fund that specifically uses gold or gold derivatives as investment media to obtain investment income. Gold funds are divided into development funds or closed-end funds.
Gold financial account. A gold financial account, also known as a gold management account, refers to an investor opening a gold financial account at a commercial bank, storing the purchased gold in the commercial bank's vault, recording it on the gold financial account, and handing it over to the commercial bank with full authority Management and disposal, during the original investment income distribution period, the investment profits will be distributed by the commercial bank, the operator and manager of the gold financial account.
Gold margin trading. Gold margin trading means that in the gold trading business, market participants do not need to transfer the full amount of gold traded, but only need to pay a certain proportion of the total gold transaction price as a performance guarantee for the physical delivery of gold. In current world gold trading, there are both gold futures margin trading and gold spot margin trading. The Shanghai Gold Exchange is also a margin trade, but it is only for its members. This kind of margin trading is different from London spot margin trading and US futures gold margin trading. It is a spot gold trading. Different from the London spot market, it has a fixed trading place and only acts as a trading medium for investors to facilitate transactions between investors. The exchange itself is not involved in gold buying and selling. Different from the U.S. futures market, the trading subject matter of U.S. gold futures is a standardized gold sales contract, while the gold deferred settlement of the Shanghai Gold Exchange is a gold spot transaction.
Gold investment is a permanent and timely investment. For thousands of years, gold has always exuded its brilliance and charm, and has become people's first choice for asset preservation due to its unique characteristics - non-deterioration, easy circulation, value preservation, investment and value storage. No matter how history changes, whether national power changes, or currency types change, the value of gold will remain forever.
In today's uncertain economic and political environment, many investors have turned to investing in gold, calling it "a currency without national borders". Therefore, gold has become the most important at any time and in any environment. The safest asset.
Choosing gold as an investment target will become an issue that more and more people who are getting rich will need to think about. More and more people who are stuck in the quagmire of the stock market will need to think about it. Indeed, as a world-wide investment tool, gold has outstanding features such as global quotations, strong anti-inflation ability, much lower tax rate than stocks, fair and equitable gold price trends, easy transfer of property rights, and ease of pawning. advantage.
The first type: physical gold trading
As the name suggests, it is a trading model defined by physical delivery, including gold bars and gold coins. Investors purchase gold bars at the gold price of the day, and after payment, Gold bars are owned by investors and are kept by the investors themselves; after the gold price rises, investors take the gold bars to the designated acquisition center to sell them.
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".
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. Generally, the minimum transaction price of banks is 10 grams, and the transaction unit is 1 whole gram. 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, for a 100-yuan stone, you only need a 1-yuan margin to use it. Transaction, so if you have 100 yuan, you can own 100 stones worth 100 yuan. If the price of each stone increases by 1 yuan and becomes 101 yuan, you sell them, so you will make a net profit of 100 yuan. . Margin trading uses this leverage principle to amplify funds and make full use of limited funds to make a big difference with a small amount.
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 the goods on a 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.
The advantages and disadvantages of spot gold compared with futures gold. (Neutral judgment)
Trading mechanism;
Futures gold: There is a short-selling mechanism, two-way trading can be profitable, and there are profit opportunities in both rising and falling markets. T+0 trading system. Positions can be opened and closed multiple times on the same day, but there is a delivery date, and delivery must be made upon expiration, otherwise the position will be forcibly closed or delivered in kind. At the same time, if the margin is insufficient, the position will be forcibly closed.
Spot gold: There is a short-selling mechanism, two-way trading can be profitable, and there are profit opportunities in both rising and falling markets. T+0 trading system. You can open and close positions multiple times on the same day, there are no delivery restrictions, and you can hold them indefinitely. However, if the margin is insufficient, the position will be forcibly closed.
Trading funds;
Futures gold: margin trading. You can do 100% of the transactions with 10% of the funds, and the funds will be magnified 10 times.
Spot gold: margin trading. The magnification factors vary according to the different gold companies, but most of them can use 1% of the funds to operate 100% gold, with a magnification ratio of 100 times. The multiple is calculated by lots, for example; 1 standard lot = 100 ounces. Some platforms can do 0.1 lots, etc.
Trading hours;
Futures gold: Trading hours are 9:00~11:30 am and 1:30~3:00 pm. Due to the short trading hours and the inconsistent international gold prices, short gaps occur frequently. Investors cannot enter immediately at the early stage of the market.
Spot gold: Due to the time difference, domestic trading is currently available from 8 am on Monday to 3 am on Saturday. That is to say, all-day trading can be entered at any time of the market. Price continuity is superior to futures. The most active trading period is between 8.00 and 24.00.
Increase limit;
Futures gold: The daily price limit ranges from 3% to 15% depending on the type of futures.
Spot gold: No increase limit.
Account opening requirements;
Futures gold: starting price is no less than 50,000.
Spot gold: Generally, the platform opening standard warehouse account is 5,000 US dollars, which is equivalent to more than 30,000 yuan. There are also some platforms that can open mini positions, usually around 1,000 US dollars.