What are the disadvantages of paper gold? Besides paper gold, which one is suitable for investors?

At present, with the increasing willingness of people to invest in gold in the international market, financial products such as paper gold and spot gold have been widely welcomed by investors recently. However, as the current mainstream gold financial management method, although paper gold is more convenient for investment, it still has some shortcomings for ordinary investors. So what are the disadvantages of paper gold? In addition to paper gold, which financial management method can we choose? Let's find out together:

1. What is the disadvantage of paper gold?

For public investors, the main disadvantage of paper gold is that it does not contain leverage, and each investment needs to be purchased in full at the gold price, so investors often need to prepare a large amount of funds to enter the market for trading. In addition, the investment cycle of paper gold is long, and investors need to hold it for a long time to see considerable returns. Relatively speaking, the liquidity of funds is not excellent. Finally, because paper gold is mainly quoted by domestic banks, it is often prone to premium problems in transactions, which will also affect investors' judgment on the market to a certain extent.

2. Which financial management method do ordinary people choose?

After knowing the disadvantages of investing in paper gold, which gold products should investors choose to be efficient and profitable? Compared with paper gold, spot gold is undoubtedly a more suitable financial management option for the general public. Because spot gold not only has a leverage system, we only need to take out a minimum of 30 US dollars to register a Datian Global mini account to enter the market, and its T+0 trading system also facilitates investors to change investment directions at any time according to market changes, and the liquidity of funds is relatively high. powerful.

In addition, we trade spot gold on the formal Hong Kong platform, and the real-time quotation is consistent with the international market, which is often more helpful for us to accurately predict the market trend.

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So in general, what are the disadvantages of paper gold? Which investment method is more suitable to choose? For ordinary investors, the main disadvantages of paper gold are the large demand for capital, the long investment cycle and the tendency to have a premium, which is not convenient for investors to efficiently achieve profits in the short term. In contrast, our investment in spot gold not only has a low market entry threshold, but also can use the T+0 system to flexibly formulate investment plans, and accurately analyze the gold price trend in the next stage based on real-time quotations in the international market, improving the profitability of gold speculation!