Raising Funds through Gold Trading
Gold struck another high on 18th June 2010 at $1250 per ounce.
There are many benefits to trading gold; some of the benefits include the steady prices of gold despite the economic changes, safety, potential for profits and less paper work.
Options for Trading Gold
Gold trading usually uses bullion coins which are government issued and are of different types that determines the coins prices. However, bullion coins are not numismatic or rare gold coins which are dependent on the quality, rarity and bullion content. There are many types of gold which one can trade on the market.
Gold Bars
Gold bars come in different weights and sizes, offering 1g to 400 troy oz. There are more than 400 gold bar types made by 94 manufacturers of gold bars in 26 countries which have been recognized by the Gold Bars Worldwide Association. These gold bars usually come in 99.5% fine gold as a minimum content requirement.
Gold Certificates
Gold certificates were first issued by the US Treasury around the same time as the civil war, up until 1933. Denominated in dollars, gold certificates were a component of the gold standard, which could be traded for a proportional value of gold. Nowadays, gold certificates are issued by banks, particularly in Germany and Switzerland, enabling investors to hold gold without taking actual physical possession.
Gold Futures
Gold futures trading are commitments made to take or deliver the ordered gold quantity at an agreed price. Gold investors make a first small deposit with a gold broker that is a portion of the gold’s net contract price. This benefits the investors if the leverage of gold is high. Gold futures trading takes place on commodity exchanges that are regulated such as NY Mercantile Exchange, Tokyo Commodity Exchange and the Chicago Trade Board.
Current Gold Trends & Outlook
The World Gold Council has indicated that gold will be in high demand in 2010 driven by increasing demand for gold jewelry in China and India. Moreover, the US economic instability and the EU sovereign debt have fueled the higher demand for gold worldwide.
Many are turning to gold as the safest asset, especially in the form of gold bars and coins as well as exchange traded funds (ETFs). As of May 20 2010, the SPDR Gold Shares displays a record 1,200 tonnes of gold at a value of US$46.88 billion.
Recent Comments