Gold is a rare metal which is often used as money. Thus, trading gold is extremely popular throughout history. Trading gold is usually viewed as a hedge or harbor against economic, political, or social fiat currency crise, such as investment market declines, inflation, currency failure, war and social unrest. Nowadays, more and more investors begin to take attention or get involved in trading gold. As a green hand, first of all we should understand some simple knowledge about the gold trading.
9 types of gold trading:
There are spot trading, binary options, gold exchange traded funds (Gold ETFs), gold futures and options, buying gold bars, gold coin collection, gold accounts, gold certificate and buy mining company's stock.
Gold trading market:
Gold exchange is generally in the various international financial centres. Currently, the most important worldwide gold trading markets are in Hong Kong, London, New York, Sydney, Tokyo, and Zurich. However, London bullion market has a greater influence on the world gold trading markets.
When fix gold price:
The gold price is changed day to day, minute by minute. Generally, the gold price is fixed twice each business day at 10:30 am and 3 pm, London time by the London Gold Market Fixing Ltd via conference call.
Factors influencing the gold price:
Nowadays, the gold price is driven by supply and demand as well as speculation. The most important factors influence the price of gold are: central banks and the international monetary fund, hedge against financial pressure, jewelry and industrial demand, short selling, gold jewelry recycling, war, invasion and national emergency.
Gold price terms:
The commonly gold price terms are bid price, ask price, spot price, and fixing price. Though the above prices all indicate the value of gold, there are great difference between them.
The bid price is the current highest price at which you could sell.
The ask price is opposite of the bid price, that is the current lowest price at which you could buy.
Spot price is calculated based on the most recent average bid price which is offered by professional traders throughout the world.
The gold fixing price is fixed by The London Gold Market Fixing Ltd, it is used as a benchmark to pricing the major global gold products and derivatives.
Gold is famous as currency, and is also know as "save haven". It is generally considered as a valuable asset. Choosing gold to increase your wealth is good idea. Go ahead!