In these times, many will have considered investing in gold since with what has happened with the preferential and the current situation of the banks; many will be tempted to keep the money under the mattress. Still, the latter makes money lose its value, yet gold money maintains its value and could also grow.
Although there are those, who say that the value of gold could go down, over time, money loses its value and even collapses, while gold and silver (among other metals) are revalued. Many people find out before these movements happen and invest in precious metals before the currency collapses. This way, they preserve their assets and even obtain great profits.
CFDs on gold
These instruments are contracts for differences quoted according to an index, in this case, the price of gold, so they are derivatives of raw materials. This system is used more and more to the detriment of the simple obtaining (purchase) of gold since it allows these assets to be disposed of at any time, the price can be tracked, and they are more liquid than the purchase of gold since in markets can be easily bought and sold.
Investment gold coins, minted coins of the countries, with the price linked to that of gold since they have no numismatic value. They are accepted all over the world.
Futures on gold
Futures are contracts used to trade gold under certain objections of price, quantity, and time, in which quantities are traded at a certain price at present but with an end date in the future. In this way, the signatories of the transaction agree to sell and buy a certain amount of gold at an agreed price determined in advance. They are financial elements of coverage to protect against increases or decreases depending on the agent’s intention; or as a way of investing in the face of price movements.
- ETFs, a mix between stocks and investment funds, have no expiration date and are easier to buy than physical gold.
- Certificates of deposit, in which you own the physical gold.
- Investment funds are a good option, although you must choose the moment well.
- Ancient gold coins, because they have numismatic and metal value.
In this sense, the ways of trading with gold are multiple. From the mere purchase of gold in deposit or through bullion, waiting for a revaluation of the price, to the transaction with futures, derivatives, or the possibility of investing in gold with CFDs and ETFs.