Indeed, there are different ways of operating gold will list below.
Long-term contracts
The long-term contract is to commit to sell or buy a certain amount of gold with a purity and a predetermined precise price, all at a fixed date in advance. For this, you should make in advance a guarantee deposit corresponding to a small portion of the total amount of the final transaction. This system is completely managed by the leverage effect. In fact, the operator only pay the security deposit here and speculate on the total amount. In other words, once it reaches maturity, at best, pockets the gains realized and at worst pays the losses generated. The success or failure of this transaction depends on the future evolution of the price of gold. Therefore, we must be prudent and anticipate the best possible future trends. Attention! The long-term price is higher than the market price because it includes interest and miscellaneous expenses.
Options
The options differ from long-term contracts that do not require the investor to buy or sell but you are entitled to it. However, the date, quantity and price of the transaction also determined here beforehand. The cost of this operation is calculated based on various elements such as the exercise price, the expected volatility, interest rates and the time remaining until the end of the contract. It notes that this system has the same advantages as long-term contracts with the particularity to reduce risks. The investor can only lose the original amount of the transaction, when the trend does not evolve in their favor.
Warrants
In this case it is a contract that ensures the investor to buy gold at a given in the future as a given date price beforehand. Thus, if the gold price reaches a higher price negotiated in the contract level, it is possible that the operator immediately takes advantage of the realized gain. Of course, this operation has to be paid in the form of premium costs. Here too the transaction is possible, thanks to a strong leverage. However, risks remain rather low, since today shows that the price of gold should not depreciate in the coming years. The performance of this type of strategy can achieve 200%
Securities
Actually, securities guaranteed gold are inherent in equity securities regulated financial products. The prices of these products are unique to evolve in parallel way to the gold price. The securities guarantee more than an equivalent quantity of physical gold. These values invert most operators.
