Wednesday, March 7, 2018

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.


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.

With the expansion of gold trading as a desired commodity from investors, the need for more tools that contribute to the rapid purchase and sale of the precious metal has grown.
Gold trading on the futures market is the most important tool. The price action has been dramatic since the USD / USD pegged off from US President Nixon in 1971, resulting in a rise of around 2200% in its price. The nine years following the resolution.

The price of an ounce was around $ 800 in 1980, before falling into a 19-year downward trend of $ 260 in 1999, reversing a new record high of over $ 900 in September 2011.
Many gold price traders may not know how gold is traded through the futures market and CME, the world's largest commodity futures market.

How does gold reach the futures exchange warehouse?
It is not complicated: after obtaining the gold in high purity, after mining, or in the form of scrap "in the form of broken and used pieces of jewelry and jewelry," and refining and production of its alloys in factories and refineries with the standard specifications are recognized, ready for delivery. 


Gold bars and bars are either owned by refineries that have already bought them from mines, or are refined and refined to external customers.

Companies operating in this field must have a registered and recognized trademark such as the German Heraeus Group, founded in the mid-19th century, whose work not only depends on gold but also silver and other precious metals.

How is the transfer performed? And who does it?
After the production of gold bullion standard specifications, the role of companies specializing in security systems to be transferred to warehouse stores, "COMEX", and can be done only through the process of certified companies and reliable.

If gold bars and bars are removed from CFE stores, the CME Group can not guarantee that they remain within the established standards and standards, and if the owner wishes to return them, this should be done by the above companies in the same way.

Tuesday, March 6, 2018

Choose Weight. Clearly, the higher the weight, the higher the price. Another important thing to keep in mind is your ability to keep the metal safe.

The US Dollar Gold and the other currencies mentioned above are made with four weights: 1 oz, 0.5 oz, 0.25 oz, 0.10 oz.

Gold bullion is usually sold in ounces and includes alloys with a weight: 1 oz, 10 oz, 100 oz.

Find the source of the sale of gold. The majority of traders, brokerage firms and banks will sell both currencies and bullion. When evaluating a merchant, he knows his time at work, whether he is accredited by an industrial or governmental entity, and specializes in any type of investment activity. In the United States, the national currency instrument announces a list of trustworthy vendors you can deal with.

Look for "selling gold online" for more detailed information on how to invest in gold via electronic markets.

Goldsmiths sell gold jewelery, but if you decide to follow this route, be sure to choose a reputable shop and work in this area for a long period of time.


Auctions may be another source of gold jewelery, but be aware that the exhibits in the auction are sold in good condition, and data identical to those mentioned in the auction. It is up to you to check their value before buying.

Determine the current market price of gold. There are plenty of online sites that will inform you of the current spot price of gold, along with other precious metals. The Kitco site is an example of these sites.

I aim to buy gold coins or bullion at or below the market price, adding about 1%. The majority of traders set a minimum purchase price, with shipping and transportation charges, and offers discounts on large quantities.

Get receipts for all your purchases and confirm your arrival date before you pay for the gold.

After purchasing the jewelry, keep the receipts in a safe place. If you buy through an auction, remember to add the buyer's premium, and any sales taxes.

Store gold in a secret place, preferably in a safety deposit box. This is very important when investing in a go, because the investment strategy safely goes right as long as your storage strategy is working efficiently. Use high-quality protection mechanisms, or pay for a company to store the metal for you.

Think ahead. Those with higher risk may prefer to invest by buying gold futures. It is necessary to note this method is considered "speculation" more what is "investment", which makes it somewhat like gambling.

Investment duration: varying. In general, investing in gold futures is like doing short-term forecasts on how the price of gold will be in the near future. Many smart investors have been investing and re-investing in gold futures over the years.

Nature of investment: high risk. There is a high rate of volatility associated with the issue of gold futures, and a lot of experienced investors lost their money in such transactions.

Investor Nature: Futures are primarily for experienced investors. Few novices can make money in this way.

Select the investment grade type for the gold bullion you want to buy. You have to choose between: gold coins, bullion, or gold jewelry.

Gold coins: The historical gold coins (pre-1933) are of higher value, having historical and important value for coin collectors along with their value as gold metal.

Examples of historical gold coins that are not sold at a price higher than the price of gold because they contain only 90% of gold are the following: the Swiss Franc, the British Guinean, the Spanish Escudo, the twenty-four Francs, the Francs, (Golden Eagle), which is equivalent to $ 10, and half Golden Agile, which is equivalent to $ 5, and the double multiplier, which is equivalent to $ 20.

Both the English and the US dollar are notable exceptions, accounting for 91.66% of gold (22 carats). The rest of the other gold coins, including the Canadian Maple Leaf, the Australian Kangaroo, the South African KRG (which has moved the entire gold coin investment field), and the Austrian Philharmonic. They are all 24 karat gold.


Gold Bullion: Gold sold as ribbons / alloys is usually net by 99.5% to 99.99% (this is pure pure gold). Famous gold refineries, the most important of which are: BMBM, Credit Suisse, Johnson Mathie, and Metallor. You will see the names of these gold refineries printed on the alloys they are processing.

Gold Jewelry: The problem with buying gold jewelry is that this investment requires payment of a price premium for workmanship (craftwork) and design efficiency. A 14 carat or less jewelry will be non-value for investment, and any resale for investment will be affected by the need to refine gold. On the other hand, it is possible to pick up some antique gold at a low cost, and through auctions where the seller may not recognize the real value of the metal in his hands, or if there is no desire for buyers to pay a higher price for it. The old pieces may have a higher value because of the quality and distinction of the handcraft and its design, making it a profitable and enjoyable opportunity if you are interested in gold collection and reinvestment.

Gold storage has been a favorite investment for many of the rich during a great period of history, and gold has also been the most famous investment among all precious metals. Gold can be replaced, transportable, and agreeable to its precious value everywhere in the world. The following article summarizes four ways to invest in gold. The best way for you depends on how much money you want to invest, your investment goals, the risk you can afford, and how long you want to store gold.

Risk Management. Collecting and storing used gold has become one of the common strategies for investing in gold. As gold prices continue to rise steadily, buying scrap gold is a low risk way to invest in this precious resource.

Investment period: variable
Nature of investment: low risk. Gold is the safest investment choice available. The expected profits far outweigh the possible minor risks.
Investor Nature: Suitable for a person who invests for the first time in gold or for someone looking to save some money for future circumstances and needs.

Run the family-wide command first. Ask your family and friends if they have any gold they want to get rid of. Almost everyone has a broken gold necklace, broken rings, mismatched earrings, and other types of scrap gold that you want to get rid of for some cash. Select a suitable price to complete the transaction, leaving a good space for your own gain.


Put an advertisement in the newspapers. Place an ad in the Ads section and Local Newspaper Help section in your city. Most people looking for help ads are in financial distress of some kind, so placing an ad offering them help to make some money by selling their old gold may make you miracles.

Place an ad on Craigslist. It's similar to newspaper ads, but it's completely free and the likelihood of your ad reaching a larger category of people increases.

Monitor auctions online. Gold manufactures are usually sold at lower prices than scrap, making them a great investment vehicle as well. Be sure to check the factors (tax or shipping cost) before participating in the auction.

Be a good relationship with local foreclosures. Leave your contact details with them and ask them to contact you if anyone wants to sell gold items that the shop does not want to buy. Some small shops do not have to link with refineries and refine gold or they do not want to deal with scrap gold.

Buy gold. All countries around the world spend money they do not own, creating a kind of unstable economy. Gold alloys are the only real protection against this kind of instability.
Duration of investment: In the long run, even if the economy accelerates, and a state of inflation is followed. Which assets are capable of facing inflation? gold.
Nature of investment: low risk. Experts agree that the pyramid of investment distribution is built on a base of low-risk investments, including gold bullion.
Investor Nature: Gold is a great choice for new investors.

The investment of low risk gold is the best defense against economic conditions and it provides security for you and your family, while paper currency is a government-issued securities to evaluate goods and services, gold is one of the safest forms of investment under any circumstances because it is easy to liquefy , Since the level of risk in the investment of gold is very low and the performance of investment is very good during financial crises, it is recommended for each investor to keep at least 10% of the portfolio of investment in the form of gold, female tourists who have no experience in the investment of gold in the financial markets and shares above them but Buy small amounts of gold every period and keep them for hard times.

When investing gold, the investor has three options: buying physical assets, ETFs or trading futures.

Means used by investors in gold:
The spot market is the medium used by large traders and large institutions, and recently entered by small investors, where they buy gold from the major banks and the gold is transferred to avoid security risks, but through paper contracts, and India, China, England, Turkey and Italy are famous for this market.


Futures markets where traders are trading the purchase and purchase contracts at a fixed price and set for their implementation a later date in which the payment of the price and receipt of securities, and COMEX on the New York Stock Exchange the most important global market for gold futures contracts.

Traded funds are issued with yellow metal backed securities, allowing traders to take advantage of the advantages of the precious metal market without receiving the same metal. The most recent countries in the world are Dubai, Turkey and India, where they buy gold from private stores or through the internet and pay In return for a simple price premium for investment products.

Gold is currently traded on the internet. The purchase and sale of gold is measured daily by a unit of measurement called the ounce, which is approximately 31.104 grams, which is heavier than the known ounce of 28.34 grams.

Many experts stressed the importance of correct handling of the success of the process of investment in gold, as there is success in the investment of gold also there is a failure to invest, I advise all investors of gold, whether beginners or professionals to master all the correct methods of dealing, to be successful investors and successful in this profitable field, which Say: Who is fluent in it and succeeds in it, because investing in gold needs skill, intelligence and accuracy in dealing. If the investor uses these qualifications, he is a successful investor.

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