Analysis! The advantages and disadvantages of major gold investment types

At present, there are many types of gold investment on the market, which can be divided into the following two categories: one is physical gold investment, which can be divided into gold bars and coins, and the other is used for gold trading through special gold accounts, such as paper gold, gold futures, London gold, and gold stocks. So, do you know the advantages and disadvantages of the major types of gold investment on the market?

So today, I will explain to you one by one the advantages and disadvantages of these types of gold investments:

1. Gold bar investment

I believe everyone can understand the obvious meaning of this, why buy gold bars? This is because gold has strong value preservation properties. As the longest and most widely circulated currency in the world, gold can be circulated in any city. This is unmatched by any paper currency on the market. And the price of gold is stable, unlike the sharp depreciation of currency, which has a certain effect on inflation.

Disadvantages: Buying gold bars requires most of the cash and requires extra attention to the storage of gold bars.

2. Gold coin investment

Gold coins are divided into pure gold coins and commemorative gold coins. The price of pure gold coins is consistent with the price of gold, so the price will also change with the fluctuation of gold prices on the market. However, pure gold coins are more collectibles for coin lovers. Although they are highly ornamental, the possibility of a premium if they are used for buying and selling is not high. While other attributes of commemorative gold coins are similar to other parts of gold coins, the collection attributes of commemorative gold coins are higher than those of pure gold coins, especially the rare and historic commemorative gold coins, which have great potential for appreciation.

3. Paper gold

Paper gold does not involve actual physical gold. Although it participates in market transactions in the form of gold investment, the amount of its transactions has nothing to do with physical gold. It only uses gold as an account to use funds to participate in transactions. Its advantage is that it is relatively stable.

4. Gold certificate

As a more popular investment method in the world, the liquidity of gold certificates is very high. And the biggest worry about some physical gold is the storage problem. And gold certificates ensure the safety of physical gold in a wide range. In short, holding this certificate can withdraw physical gold in any major financial trading area of the world without worrying about the loss of gold. And the extracted gold is also a store of value.

The drawback is that physical gold deposits and deposits require a large amount of money, and holding relevant certificates requires institutional approval to qualify for withdrawal.

5. Gold futures

Futures gold is traded by investors who first buy a certain amount of gold, and then use 5% -10% of the investment amount as the margin of the futures institution as the investment cost. Although the transaction amount accounts for only a small part, the actual investment amount is actually traded. Therefore, futures gold is also called "deposit trading".

The disadvantage is that the overall trading system is relatively "rigid" due to the limited delivery period.

6. London Gold

Also known as international spot gold. It is also through individuals setting up a gold account in the bank to participate in market transactions. The biggest advantage of this trading method is that there is no limit to the trading time, so in the case of market fluctuations, you can respond to the market in a timely manner and go long or short at any time.

7. Gold stocks

The significance of this stock is that it can not only participate in the investment and trading of gold, but also participate in the investment of gold mining companies that issue the stock. However, this is both the advantage and disadvantage of gold stocks. Although "one share can be used for both purposes", it also means that when considering trading, it is not only necessary to have a basic familiarity with the current situation of gold mining companies, but also to have a basic understanding of the gold trading on the market. Otherwise, it is difficult to make the right choice in trading.