Friday, 17 June 2016

Gold Trading - Heera Group


Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a way of diversifying risk, especially through the use of futures contracts and derivatives. The gold market is subject to speculation and volatility as are other markets. Compared to other precious metals used for investment, gold has the most effective safe haven and hedging properties across a number of countries. Heera group is gold trading company in India and  providing  gold trading opportunity to customers.  
www.heeraibg.com


Let Us See How Gold Get Into Warehouse Stocks Of The Future's Tradings...

Gold is recovered either from mine output or scrap jewelry and other products, such as bars and coins, at a refinery. The refiner then produces gold bars to the standard and specification of the exchange. These gold bars belong either to the refiners themselves, meaning they have bought and own the gold. Or they belong to the refiner's customers, who bought and owned the gold at the refinery, hiring it to make that metal into saleable bars. Now, for this particular refinery to deliver metal onto the commodities exchange, it must be a registered acceptable brand. Once these gold bars are produced, the metal must then be transported to the warehouse by exchange-approved carriers. There is no other way for the gold to get onto the exchange. Gold may move between Comex-approved warehouses, But any moves made between these warehouses must be made using the same approved carriers. No gold can enter the marketplace from outside of this refining loop.
Once gold is removed from an exchange-approved warehouse and held somewhere outside of this circle of integrity, there is no way for the CME exchange to guarantee the bar's quality. This means that once a person or investor removes bars from the warehouse, then to return them to the exchange they would need to start at the beginning again. By going through the hands of the gold processor and refiners, this provides guarantee of the standard and quality of the material being delivered on the exchange.

Some Of The Key Benefits Of Future Tradings Are:
For traders who don't want custody it eliminates the hassles and costs of settlement and storage. This significantly reduces costs.
Investors need much less money to participate.
Traders can short sell. Provided they buy an equivalent contract back before the contract expires they will have been able to profit from a falling price. This can only be done on spot markets with great difficulty, because it requires the seller to borrow gold, which is next to impossible for retail investors.
All participants trade exactly the same notional rights - i.e. those defined on the standard contract, so the market grows deeper and more liquid in the standard futures contract than in spot bullion where different qualities of bullion exist each of which has different prices.
Greater liquidity provides a reliable real-time price – something which is absolutely not available in the OTC bullion market.

These are some of the mean turnover of gold futures contracts which currently exceeds the actual bullion production by many times. It is not a figure which is easy to estimate, but COMEX turnover on its own exceeds gold production about twenty-folds.

We can defenitely think that gold is going to capture the minds of the new born traders too, but at the same time we have to re-think that, Will gold be a precious metal tomorrow?

2 comments:

  1. SilverGoldBull is a highly trusted precious metals dealer. You will be provided with bargain, up-to-minute prices and guarantee your precious metals are delivered to your door discreetly and fully insured.

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  2. It proved to be Very helpful to me and I am sure to all the commentators here! investing in gold mining stocks

    ReplyDelete