What are gold derivatives? Which product has more advantages?

Under the change in the attitude of the Federal Reserve, the market's confidence in gold has declined significantly, and it has recently fallen below the 1800 mark again. In this context, as a two-way tradable gold, there are actually more opportunities to enter the market, but at the same time, the risks are also will accompany. Therefore, choosing gold derivatives with greater advantages can be relatively more stable to obtain benefits from them. What are gold derivatives? How should we make a choice? The answer can be found by the comparison below.

1. Gold futures

What are the gold derivatives, the first one is gold futures, which is also a relatively common gold investment channel in my country. Gold futures is a futures contract with gold as the trading object. Its advantages are considerable returns, but its shortcomings are also obvious. Not only are there limitations on delivery deadlines and trading hours, but the investment threshold is as high as 30,000 RMB.

2. Spot Gold

Spot gold is an online investment through the Internet, and it is a type of gold derivatives with greater advantages. Its advantage is that it has low cost requirements and does not have too many threshold restrictions, especially Datian Global's mini account, which can be opened for $30 and is suitable for investors of any capital size. However, as a high-yield product, spot gold is naturally not low in risk, so try to use a price-limited trading platform when investing.

Mini account ultra-low investment threshold, 30 US dollars can operate profitably

3. Gold Option

Gold option means that the buyer has the right to buy or sell a certain amount of gold to the seller at a pre-agreed price within a certain period of time in the future or on a specific date in the future after the buyer pays the option premium to the seller. Although it also belongs to one of the gold derivatives, there are not many gold options markets in the world.

4. Paper Gold

Paper gold is a precious metal trading service provided by banks, and it is also a common type of gold derivatives. Investing in gold through bookkeeping has the advantage that although the transaction cost is higher than spot gold, it is generally in line with the public. The disadvantage is that the income is average, unless it is a large investment, it will not be able to obtain considerable profits in the short term.

What are gold derivatives? The above four products are relatively common gold investment methods at present, and they have their own advantages. However, after comparison, it is found that spot gold has obvious advantages in terms of investment income and transaction cost, so it is more worthwhile for beginners. Investors take priority.