What Determines the Spot Price of Gold?
Spot gold refers to physical delivery, such as gold bars and coins. The spot gold is just a virtual book transaction without physical delivery. Reflect on your passbook how many grams of gold you have, it is just a bookkeeping symbol and you cannot extract physical gold. It just makes the difference by buying and selling. The former can preserve and increase value, but it takes time. I'm afraid it's not safe to put gold bars at home, so I can go to the bank to rent a safe. The latter, because it does not involve physical objects, there is no hidden danger of security, but it is also necessary to grasp well and look at the market when trading.
Gold spot
- Gold spot refers to
- Features
- One: Two-way operation, both up and down can be operated!
- The biggest feature of spot gold trading is the shorting mechanism. This stock fund warrant is not comparable. That is to say, you can make money even when the market is down. The advantage of spot gold investment is that there is no hold-up, and there is no opportunity for investors without gold price drops.
- Second: margin trading, 1: 100 leverage to small and large:
- The amount of funds is enlarged by 100 times. The trading volume of gold investment in one hand is 100 ounces (1 ounce = 31.1035 grams), which means that investors only need to spend 1 ounce of funds to have the right to trade 1 lot (100 ounces) of gold. Then use the gold returned with 1 ounce of funds to trade on the gold market and earn the difference, so as to realize the characteristics of small funds to make a big deal!
- 3. T + 0 trading mode, buy on the same day and sell on the same day, and immediately turn around when you find the market is unfavorable to reduce losses. Or take profit immediately and close the position. Trading hours 19 to 20 hours of trading time per day, especially suitable for office workers, working during the day and trading at night.
- 4. Market Openness: The international spot gold market is open to the world, with high transparency and daily trading volume of several trillion US dollars, making it difficult for market makers to appear. Strong analytical ability, suitable for technical analysis.
- V. Strong value preservation: Gold has been the best value-preserving commodity since ancient times, and its appreciation potential is large; the intensified inflation in the world will promote the risk avoidance function of gold, thereby promoting gold trading.
- six. Rarity: The earth's gold stock is about 137,400 tons, the gold stock on the ground is increasing at a rate of 2%, and the annual supply of gold is about 4,200 tons. Due to the rapid development of global industry and jewelry industry, the demand for gold has increased linearly!
- 1. The investor signs an account opening agreement with the regular platform that he inspects
- 2. The investor obtains the trading account and password of the regular platform that he inspected
- 1. The investor downloads the withdrawal application form on the official website of the official platform that he inspected;
- 2. Filled in and signed by the investor, and faxed to the official platform of his inspection;
- 3. The regular platform inspected by itself will contact the investor for identity verification shortly after receiving the withdrawal application;
- 4. After confirming that it is correct, the regular platform that I inspected will transfer the funds to be transferred to the domestic bank account associated with the investor when opening the account.
- Inflation, global financial markets, states of war, domestic reserves (because of non-renewable resources, insufficient domestic reserves can also affect prices).
- Factors affecting the price of gold
- Before the 1970s, the price of gold was basically determined by governments or central banks of various countries, and the price of gold was relatively stable internationally. In the early 1970s, the price of gold was no longer directly linked to the US dollar, and the price of gold was gradually marketized. Factors affecting the price of gold were increasing. For example, Elan Finance calculated that it can be divided into the following aspects:
Gold Spot Futures Comparison
- First, trading time
- Futures gold: 09: 00 11: 30 13: 30 15: 00 (4 hours in total).
- London Gold: 24 hours of continuous trading from Monday to Friday, ready to enter the market at any time.
- Second, the transaction model
- Futures gold: two-way trading, T + 0 trading system, there are restrictions on the delivery period, and the delivery must be completed or closed on the delivery day.
- London gold: two-way trading, T + 0 trading system, no delivery deadline, you can open and close positions on the same day.
- Third, investment costs
- Futures gold: 15 times leverage, that is, a commodity with a physical value of 1 million only needs a deposit of 66,000 (high investment).
- London gold: 100 times leverage ratio, 1% margin, can reduce investment cost to 1% of actual cost, 10,000 yuan (low investment) is required for commodity transactions of 1 million in kind.
- Fourth, investment income
- Futures gold: 1000 USD per ounce to buy one lot, that is, 225 yuan rmb / gram X 1000 grams X 6.6% = 14850 yuan / lot (cost)
- Selling at 1,400 US dollars per ounce, that is, selling at 300 yuan per gram, will make a profit (300-225) X 1000 = 75,000 (income)
- Yield: 75,000 / 1.48 million = 505% or 5 times. (Medium investment, medium income)
- London Gold: Buy one lot at 1000 US dollars per ounce, the cost is 1,000 US dollars, about 6500 yuan RMB. (cost)
- Selling at 1400 USD / ounce will make a profit: (1400-1000) X 100 = 40,000 USD = 264,000 RMB. (income)
- Yield: 264,000 / 06,500 = 4060% or 40 times. (Low investment, high yield)
- Fifth, the price limit
- Futures gold: 5%
- London Gold: There is no up / down limit, and there is more profit space. At the same time, stop loss and profit levels can be set, and risks can be controlled.
- Sixth, transaction costs
- Futures funds: Generally two ten thousandths (bilateral fees) totaled four ten thousandths + commission
- London Gold: Unilateral charges, spreads: 5 ten thousandths, one transaction needs to pay 50 US dollars, which is 325 yuan RMB.
- Seventh, investment prospects
- Futures gold: After the financial crisis, global currency depreciation, quantitative easing in the United States, European debt crisis, political turmoil in the Middle East, conflict between North Korea and South Korea, bullish gold, bull market pattern.
- London Gold: After the financial crisis, the global currency depreciation, the United States quantitative easing, the European debt crisis, the Middle East political turmoil, the North Korean conflict, the bullish gold, the bull market pattern.
Gold spot profit method
- Generally speaking, precious metals trading mainly achieves profits by buying long and short, that is, if you predict that the future trend will rise, then you buy long orders, and if you predict that it will fall, sell short orders, as long as the future trend Consistent with your prediction direction, you can make a profit. The shortest process is only a few minutes. It all depends on how you operate. Of course, if you do nt want to spend your energy on research in order to save effort, you can also find some more professional platforms to follow their orders, such as Furu Capital, etc. This type of capital market trading model is more direct and faster than traditional stock trading. Through the leverage to quickly enlarge the profit space, if the operation is stable, at least 20% of the principal can be realized every month. At present, 90% of transactions in the world's top secondary markets adopt the spot trading model, and everyone can refer to it.
Comparison of gold spot varieties
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Features of Gold Spot Gold Futures
- 1. Bidirectional operation
- In addition to buying and holding, the gold spot can be short, so no matter how long the market is, you can make a profit, giving global investors a considerable degree of operational flexibility. This is also the main reason why the gold spot market can compete with the gold futures market.
- 2. Leveraged trading
- The gold spot has a lever effect. If investors go to Hong Kong for spot gold investment, the size of first-hand London gold is 100 ounces of 995 pure gold, and the current market is about 130,000 US dollars. For Hong Kong, a single lot of London Gold requires only $ 1,000 to enjoy 100 ounces of gold, with leverage ratios exceeding 100 times.
- 3.24 hours trading, market transparency
- Spot gold is traded 24 hours a day around the world, and there is no time for market closure. If investors have access requirements, as long as they have accounts in other markets, they can trade in global markets. In addition, the gold spot market is huge, the market is highly transparent, and investment information is transparent.
- 4.Buy and sell on the same day
- The gold market is volatile. Investors arrange the gold spot, and do not need to wait for two days (T + 2) after the trading day, and then sell it on the same day. If they find the market is unfavorable, they can immediately change their direction to reduce losses. Attack and retreat can be defended.