Here are some basic concepts of precious metals investment:
1. physical investment: purchase physical precious metals, such as gold bars, silver coins and platinum bars, and store them in a safe place. This investment method provides investors with a direct sense of ownership and value guarantee.
2. Electronic trading: Through the online trading platform, investors can buy and sell precious metal contracts, such as gold or silver futures contracts. This kind of transaction is convenient and fast, but it needs to bear the risk of price fluctuation.
3. Futures and options: Precious metal futures and options are contracts to buy and sell precious metals at a specific time and at a specific price. These financial derivatives can be used to hedge risks or earn speculative profits.
4. Precious metal accounts: Some banks and financial institutions provide precious metal accounts, allowing investors to buy, sell and store precious metals. These accounts provide convenient channels for investors to participate in precious metals investment.
Precious metals investment has the following advantages:
1. hedging: precious metals are usually regarded as hedging tools against inflation and currency depreciation.
2. Diversification of investment: precious metals investment can increase the diversity of investment and reduce the risk of a single asset.
3. Liquidity: The precious metal market usually has high liquidity, and investors can buy or sell at any time.
4. Tax preference: In some countries and regions, precious metals investment may enjoy tax preference.
However, there are some risks in precious metals investment, such as price fluctuation, transaction cost and storage risk. Investors should be fully aware of these risks and do a good job in risk management when conducting precious metals investment.