11:04 PM
After the bullion arrives at the stock exchange futures stores in a proper manner, they become "eligible for trading", as delivery receipts are released and gold becomes "registered" shares.
These receipts operate as proprietary instruments that can be transferred from one party to another, while the holder pays the costs of storage. Most often, these receipts remain with the brokering company that carries out the brokerage process. Which traders do not consider to acquire but to profit from.
What is the relationship between gold stocks and price movements?
There is a correlation between the gold in the stock exchange in COMEX and the price movement, as shown in the graph, from the "BullionVault" as the stock tends to fall as the price of the precious metal falls, that is, the ratio is just over 18 Years.
How are gold futures exchanged?
Futures are an agreement to deliver a specific amount at a specified time in the future, while there remains a large amount of liquidity in the market as a result of the levers that allow the payment of a small amount of money, and get fold times, according to brokering companies to buy a large amount of gold.
Companies working in this field are trying to hedge both in mines, jewelry manufacturers and others against the volatility of this market by buying futures contracts, but they are joined by speculators who want to make profits from high prices and low prices.
These receipts operate as proprietary instruments that can be transferred from one party to another, while the holder pays the costs of storage. Most often, these receipts remain with the brokering company that carries out the brokerage process. Which traders do not consider to acquire but to profit from.
What is the relationship between gold stocks and price movements?
There is a correlation between the gold in the stock exchange in COMEX and the price movement, as shown in the graph, from the "BullionVault" as the stock tends to fall as the price of the precious metal falls, that is, the ratio is just over 18 Years.
How are gold futures exchanged?
Futures are an agreement to deliver a specific amount at a specified time in the future, while there remains a large amount of liquidity in the market as a result of the levers that allow the payment of a small amount of money, and get fold times, according to brokering companies to buy a large amount of gold.
Companies working in this field are trying to hedge both in mines, jewelry manufacturers and others against the volatility of this market by buying futures contracts, but they are joined by speculators who want to make profits from high prices and low prices.
For this reason, most of the deals of those contracts are terminated before the specified delivery date, not only for gold, but for almost all commodity contracts, which means that the vast majority of market participants are speculators.
But some companies, he said, want to hedge, such as a unit that manufactures the jewelry against the dangers of price movements and then enter the market contracts to sell some of them.
To illustrate, suppose a jeweler needs 100 ounces to make 400 rings, and it will probably take about two weeks to finish production. This jeweler does not want to be exposed to price risk.
Is going to the futures market to sell the contract "100 ounces" through the stock exchange, while at the same time buying gold in kind to manufacture the rings, "100 oz", thus fading the risk of price volatility, through this hedge, and after the completion of manufacturing Rings and sell them during the two weeks he buys the futures contract he sold.
The futures market continues to trade and speculators try to push prices in a direction, which is determined by many factors including the industry itself and its fundamentals, and gold is one of the most important safe havens for investors in times of crisis.
But some companies, he said, want to hedge, such as a unit that manufactures the jewelry against the dangers of price movements and then enter the market contracts to sell some of them.
To illustrate, suppose a jeweler needs 100 ounces to make 400 rings, and it will probably take about two weeks to finish production. This jeweler does not want to be exposed to price risk.
Is going to the futures market to sell the contract "100 ounces" through the stock exchange, while at the same time buying gold in kind to manufacture the rings, "100 oz", thus fading the risk of price volatility, through this hedge, and after the completion of manufacturing Rings and sell them during the two weeks he buys the futures contract he sold.
The futures market continues to trade and speculators try to push prices in a direction, which is determined by many factors including the industry itself and its fundamentals, and gold is one of the most important safe havens for investors in times of crisis.
0 التعليقات:
Post a Comment