What are golden securities?
golden securities are usually divided into one of the three main categories: gold bonds, funds traded in gold exchange and mutual gold funds. All three are financial instruments associated with the market value of gold and often other precious metals, except that gold bonds are directly supported by the reserves of golden predators. It is also possible to invest in gold as a safety by physical purchase and sale of gold based on its value on commodities. However, where golden securities are involved, this is becoming a gray area, because funds traded on the stock exchange monitor market trends and mutual funds try to defeat the market of diversity, but often do not achieve this goal. The international division of the Golden Standard in 1971, when US President Richard Nixon ended the policy of American paper money that was directly converted to the same value of gold, and also contributes to speculation in golden securities.
Gold bonds or gold bonds are issued by mining companies that directly support the bonds of the gold stores they hold. Gold bonds give the investor the opportunity to transfer their bonds to gold at any time without having to physically save and insure the golden metal itself. As a result, highly liquid financial tools that monitor the commodity price of gold and are conveniently converted to gold or cash. The disadvantage of gold bonds as one of the main forms of gold securities is that if the price of gold on the market is falling, then bonds are less value and are usually associated with one mining company that can change its policy. If gold mining becomes more expensive than Current gold price, then the value of the bonds will also decline.
Funds traded on the stock exchange as a form of golden securities are similar to bonds in that they are fully supported by golden expensive cells that are safely stored and insured. However, these funds are suggestedNY to follow market trends. Regional gold markets, such as the Australian Golden Gold market with their gold dragon securities fund, will fluctuate compared to gold prices elsewhere and rising and falling with the market.
gold -related mutual funds are undoubtedly the most speculative types of golden securities for someone who decides to invest in this rare metal. Mutual fund is a collection of shares, bonds and short -term investments that lead the managerial team to try to ensure financial profits beyond the overall market trends. The net value of assets (NA) shares of mutual funds is calculated daily and in the case of mutual gold funds the investments are concentrated on various precious metals such as gold, silver and platinum. The dark idea to balance the loss of investment in the fund with those who get the land to have an overall positive return. Estimates, however, their success tends to degrade.