What are Gold Futures?

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It has been said all the time that investing in gold is one of the most stable methods in the market. One thing you have to be aware of is that investing in gold does not necessarily mean that you have to own the physical gold because like stock, they can be on the value of a specific volume.

Investing in physical gold is possible through owning gold coins or gold bullions while you can also seek the non-physical way where you can invest in gold futures.

Investing in gold futures require an agreement between the buyer and the seller and this is pretty much the same concept as conventional futures or stocks where both the parties agree to trade a certain amount of gold at a current price in the near future.

Typically, this is where both parties enter into a contract and then decide on how much gold are to be traded and this will also include information like the date of the delivery and the quality of the gold. The contract will not stipulate the price of the gold as it will refer to the current market price of gold.

Gold futures are commonly traded in international exchanges like the Shanghai Futures Exchange of China, the Chicago Mercantile Exchange of the United States as well as in the Multi Commodity Exchange of India where among the common advantages of gold futures is that you need not keep the stock.

As mentioned, this is the same concept with that of any futures trading. This means that naturally, you do not keep any physical gold where all you have is a contract printed on a piece of paper.

Without keeping the actual gold, it solves the problem of inventory where you need to hold the physical gold when investing.

Another good reason to invest in gold futures is that you are able to trade a large amount of gold without having to pay for the full value. Using only a fraction of the value, you will be able to enjoy the profits (and losses, if any) which is a common advantage over buying physical gold.

How do you start investing in Gold?

Gold is perhaps one of the most popular form of investment among all the precious metals like silver and such. If you are looking for one which is stable and almost-guaranteed, then this investment method will be your best bet.

Investing in gold is something that you can do if you have disposable cash which you can set aside for some time. Once you buy gold, you need to wait for it to appreciate.

International currency

Unlike any other forms of investments which are usually dependent on the country of origin, gold is universally accepted. This simply means that if you own gold, you can carry it (although not literally) anywhere and it will still be worth its amount.


Gold prices are known to be most stable. Since the 1960s, gold prices have been growing and advancing. It has been historically used as a form of money for trade and commerce. Today, gold prices of gold are released periodically which will then be the basis of how it can be traded.

How is it determined?

Investing in gold is very similar to any other forms of commodities. It is mostly driven by the supply and demand for this precious metal. This means that when you invest in gold, you are doing so in gold bullions and not the beautifully crafted objects.

One of the biggest influences of gold prices is when the market is too uncertain and volatile. For instance, the uncertainties surrounding crude oil prices and the challenges faced by the American Dollars have prompted many investors to turn to gold.

What to invest in?

If you are a new investor, then buying gold would be quite challenging. You cannot enter the market as and when you like and would need to do some homework before starting out. The best way to do this is to first invest into physical gold. You can buy these items from goldsmiths if you are looking for something fancy. Otherwise, you can invest in the banks where you will be issued with a gold certificate.

One of the more popular methods in gold investment in recent years is the DGC or digital gold currency. At the moment, there are no regulations as to who can sell and buy DGC. This means that you need to be careful when investing into this from agents who claimed to be so as they might be unscrupulous as gold price can be quite high.


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What are Gold Futures?

It has been said all the time that investing in gold is one of the most stable methods in the market. One thing you have